It restricts risk reporting to senior management only

It centralizes risk decisions to one department

It eliminates the need for external audits

It ensures risk considerations are built into everyday decision-making

Automated alerts

Risk dashboards

Performance reviews

Manual audits

By focusing solely on regulatory compliance

By eliminating the need for ongoing monitoring

By providing a static view of risk profiles

By helping assess whether risks remain within appetite post-mitigation

Response mechanism and governance

Roles & responsibilities for escalation

Automated risk dashboards

Thresholds for escalation

To provide qualitative assessments of risk

To serve as early warning metrics for material risks

To replace all manual risk reporting processes

To communicate risk only to regulators

Strengthen ‘risk based’ decision making

Enable integrated risk response mechanism

Continuous Monitoring & Review

Proactive Risk

To automate all risk escalation processes

To ensure only internal stakeholders receive risk information

To drive governance and quality standards for reporting frequency and content

To eliminate the need for external regulatory reporting

Transparency and Communication; Regular team meetings

Proactive Risk; Regular updates to cybersecurity protocols

Reporting Framework; Standardized templates

Continuous Monitoring & Review; Market trend analysis

ATM Maintenance Vendor

Payment Processor

KYC Verification Agency

Bank Customer

To reduce the cost of banking operations

To eliminate all external vendors

To increase the number of vendors

To analyze and control risks from outsourcing to third parties