CAE Agenda: Your Monthly Audit News Roundup - May 2021
Our team has collected the top internal audit news, insights and resources for financial services organizations to help you and your teams.
Thank you for reading the June edition of the CAE Agenda.
The Protiviti Team
In this episode of our “Future of Risk and Compliance” podcast series, Constantine Boyadjiev, Managing Director leading Protiviti’s Global Risk & Compliance Analytics practice, interviews Griselda Rondon, EVP Chief Model Risk Officer and Analytics Oversight at KeyBank, and Harsh Singhal, Head of Decision Science and Artificial Intelligence Validation at Wells Fargo. Boyadjiev, Rondon and Singhal discuss how financial services organizations can embrace change, harness technology, and bring innovation to the field of governance, analytics, risk and compliance.
Listen to this podcast to learn about current compliance function skill sets, what is needed for the future and how compliance can be transformed from performing reactive tasks to managing future risks.
On May 18, ISACA released new research on global emerging tech trends - The Pulse: Emerging Technology 2021 which underlines how cost, cybersecurity risk and unclear business objectives are the top barriers to technology adoption. The report offers insights into how global IT and business professionals view the benefits, risks, adoption barriers and knowledge gaps and leadership’s willingness to adopt new tech.
On June 2, the Financial Stability Board (FSB) published a set of documents to support a smooth transition away from LIBOR by the end of 2021. To facilitate an orderly transition by the end of 2021, the FSB has published statements and reports that set out recommendations for financial and non-financial sector firms, as well as the authorities, to consider.
On May 27, U.S. Senator Brian Schatz (D-Hawaii) and U.S. Representative Sean Casten (D-Illinois) introduced legislation that would direct the Federal Reserve to subject large banks to stress tests to measure their resilience to climate-related financial risks.
This issue of The Bulletin, published on May 27, focuses on the willingness of consumers to share data and trust in different actors, based on a representative high-quality survey of U.S. household heads. It assesses Americans’ trust in different counterparties to safely handle their data – governments, traditional financial institutions (FIs), fintechs and large technology firms (big techs) – according to differences in the respondents’ gender, ethnicity and age. The Bulletin also investigates how Covid-19 has changed attitudes and concerns towards privacy. It concludes by discussing the implications for data privacy and digital identity in financial services.
Brian Brooks, former acting U.S. comptroller of the currency and now CEO of Binance US, lays out that as we embark on the crypto revolution, focus on both sides of the coin is needed — the risks, and the rewards — to create an environment where all Americans can experience the benefits of decentralized finance.
On May 7, the European Insurance and Occupational Pensions Authority (EIOPA) launched its 2021 insurance stress test for the European insurance market. The Insurance stress test focuses to assess the resilience of the European insurance market in case of adverse financial and economic conditions and identify the market’s vulnerabilities.
On May 14, the FCA set out plans for a new Consumer Duty, which will set a higher level of consumer protection in retail financial markets for firms to adhere to, including enforcement investigations if they fail to do so. The consultation is open for comment until July 31, 2021. The FCA expects to consult again on proposed rule changes by the end of 2021 and make any new rules by the end of July 2022.
In this blog post, Fabio Panetta, a member of the Executive Board of the European Central Bank, takes a deeper dive into three priorities that stand out on the international agenda, and lays out key steps for a common global approach to sustainable finance.
ASIFMA’S Asset Management Group Underscores Investors’ ESG Expectations in Asia in New Industry Paper
On June 1, ASIFMA’s Asset Management Group (AAMG) published a paper entitled “Investors’ ESG Expectations: An Asian Perspective”. The paper was published as part of ASIFMA’s ESG and Sustainable Finance Week, a virtual event from held June 1–4.
Instances of workplace misconduct have rarely been more high profile in the media and general public discourse than during the past few months. The financial sector has not been exempt from this debate, while the Royal Commission also aired plenty of examples of misconduct where APRA-regulated entities were squarely culpable for poor behavior. Read the full speech by APRA Executive Director, Superannuation Division, Suzanne Smith at the ASFA Spotlight on Risk & Compliance event on May 27.
This consultation paper sets out MAS’ proposed revisions to the Guidelines on Corporate Governance for Designated Financial Holding Companies, Banks, Direct Insurers, Reinsurers and Captive Insurers, which are incorporated in Singapore. MAS is proposing that these revisions take into account international standards and industry good practices.
The holy grail of quantum computing in the near term is a use case that provides advantage. We believe it’s only a matter of time, but major companies have to plan and prepare now so that they are not left behind when these applications arrive. Join host Konstantinos Karagiannis for a chat about quantum computing use cases with Pranav Gokhale from Super.tech. We cover mostly financial customer approaches, and move into research and intellectual property woes, benchmarking quantum computers, and how to win a million dollars.
The “people” component of enterprise transformation can make or break digital transformation. Organizations that want strong change enablement must establish a shared-risk, shared-gain approach, and should consider four key actions we lay out in this blog.
As organizations continue to modernize their technology platforms, key cybersecurity disciplines and approaches need to be considered. In this blog, we list four key consideration for CIOs:
- Build resilience into the foundation of the cybersecurity program.
- Implement new approaches and technology architectures that will be needed to securely enable the business.
- Respond to adversarial events with visibility, speed and agility.
- Collaborate with C-suite leaders and provide education where necessary to garner understanding and support.
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