Providing Innovative Expertise in Non-Financial Risk
Whilst firms battle to improve the strength of controls and manage costs, New Link Consulting believes technology will change the game in the control environment. It will change the way controls are designed and operated and provide increased predictive and pre-emptive controls at a reduced cost.
The constantly changing internal and external environments provides financial institutions with significant challenges in managing non-financial risks.
In recent years, financial institutions have had to adapt to new regulations and technologies arriving at an unprecedented rate. In such an active and dynamic business environment, non-financial risk management has become a critical requirement for all firms.
At New Link Consulting, we stay abreast of the latest technological and regulatory developments, so that we can offer the latest intelligence, advice and support in management of non-financial risks. This includes those introduced by new processing techniques such as machine learning and robotics, those relating to operational challenges, through to preventing compliance failures, conduct risk, technology risk and cyber risk. New Link Consulting is perfectly positioned to help you stay ahead of the curve and retain a competitive edge in this complex and transitional landscape.
Our consultants combine deep industry knowledge, gained through years of direct hands-on experience working within many different financial services organisations, with innovative and flexible change management skills.
This blend of subject matter expertise and delivery agility enables us to tailor our services to meet the specific requirements of each client assignment. The outcome is a collaborative, team-based approach to problem solving and exceptional delivery standards, which help us to exceed the expectations of our clients.
Non-Financial Risk: A Brave New World
of technology supporting the controls functions are in the design or build phase
of challenges facing surveillance teams are related to data access and connecting data
Source: 1LoD's 2018 Report - The 1LoD Global Benchmarking Survey & Annual Report
“Clients need to be able to see where the emerging risks are coming from, rather than reacting after the event. New technologies can facilitate that.”
Claire Lincoln-White, New Link Consulting
New Link Consulting recognises that all control functions are buffeted by the winds of change, whether through regulation, external events or an organisation’s appetite for risk. However, we believe that such functions must embrace the opportunities and challenges that technology offers to keep ahead of the change curve. The control functions need to be able to see where the emerging risks are coming from, rather than reacting after the event. New technologies can facilitate that. Artificial intelligence using predictive analytics is now commonplace and robots can perform roles in processing and operating controls that have previously been completed by individuals.
Subtle and smart
Going forward, controls will not be underpinned by binary business rules in quite the same way. For example, historically a firm may have relied on blunt business rules to prevent processing errors. However, there are plenty of legitimate items which would be stopped by these business rules, so relying on them not only means applying an unsophisticated approach to managing the control environment, but also increases costs as firms have to have staff to review all exceptions. By contrast, machine learning establishes what ‘normal’ looks like, so only identifies genuine errors.
Watching and learning
New surveillance techniques using technology solutions can now identify complex patterns of behaviour. For example, technology can quickly link data identifying a change in an individual’s trading behaviour to external factors, such as social media activity, to identify potential risks. Technology will help control functions predict dangers like this, so the firm need no longer accept them as an expected risk of doing business. Overall, the environment is much more data-rich than before, thus giving opportunities to see trends and abnormalities much faster.
Clients are spending millions annually on technology and data quality as they begin to see the long-term benefits. While the initial investment can be significant, it means that the firm can break the link, and cost, between changes in business and impact on human capital levels. New Link Consulting believes that the control functions have been underinvested in to date. Banks need to keep up. Even smaller firms will need to invest in more non-financial risk management technology and ensure they have good quality data, though they will be able to deploy less customised, off-the-shelf products because, generally, their operations are less complex.
There is a continuing need for people with risk management skills who understand controls, but clients will increasingly require people with significant technology skills in order to manage emerging risks, even outside of the technology functions themselves. Within this new world of risk management, there’s an excellent opportunity for clients, and in particular control functions, to attract exceptional individuals from both financial services as well as those from outside our industry.
New Link Consulting is perfectly placed to be the partner of choice for non-financial risk management services.
Our practitioners have had extensive experience gained in banks and other financial institutions; we know the industry inside out.
We are an entrepreneurial consultancy, with a flexible, solution-led approach, which brings measurable results on time and within budget. With New Link Consulting as your partner, you will benefit from the collective experience and know-how of some of the financial services industry’s brightest minds, working to find effective solutions to some of the most complex challenges facing your organisation today.
Consulting services and practice centres of excellence
New Link Consulting has five core consulting Service Propositions across our Practice Centres of Excellence. Our knowledge, tools and techniques are shared between and across our practices and client segments to ensure that we achieve consistency in the quality of delivery across all of our service lines. Consultants are aligned across our practices, propositions and client segments, based upon their industry experience and subject matter expertise.
Non-Financial Risk Focus Areas
New Link Consulting’s Non-Financial Risk Practice is driven by experienced, practitioner-led business consultants with the focus on risks arising from employee conduct, third-parties, technology, data, business processes, and controls. New Link Consulting advises its clients on the identification, assessment, modelling/measurement, monitoring and management of such risks.
By combining our expertise in the subject matter with exceptional change management skills, New Link Consulting can assist clients to deliver measurable results. We provide a collaborative partnership, where clients are central to our offering.
Next Generation & Technology
Assist organisations take advantage of innovative new technologies (e.g. machine learning and robotics) to better identify and manage their non-financial risks
Non-Financial Risk Transformation
Interim management and change practitioners to transform how clients leverage people, technology, data, process and controls to address operational risk and drive enhanced business performance
Risk Management Framework
Strengthen and align non-financial risk frameworks with evolving business and regulatory business areas
Control Design & Improvement
Assess and design controls to maximise adequacy and effectiveness of business processes whilst balancing cost efficiency
Provide a robust governance framework and develop management information to continuously monitor non-financial risks and control effectiveness
Identify remediation requirements and provide experienced consultants to prioritise and complete necessary remediation activities
Risk / Control Testing & Assurance
Help firms stay vigilant and resilient to all forms of cyber risk, to reduce instances of financial loss, disruption or damage to the reputation while accessing opportunities presented by new technologies.
Established in 2011, our practitioner-led service offering combines deep industry knowledge, gained through years of direct experience, with innovative change management skills.