LeadersConnect Live | 20-21 May 2025 | New York
The second day of LeadersConnect Live covered critical topics for the industry, including governance, third party and process. Delegates also had the chance to discuss key steps on the pathway to success from the ORX vision paper. Read on for some key takeaways from the day. You can also read yesterday's blog for highlights from day one of LeadersConnect Live 2025.
How does ONFR governance need to evolve?
We started the day by exploring how operational and non-financial risk (ONFR) governance and management structures are changing in response to the increased profile and breadth of the discipline. Mike Constantinou (ORX Consultant) and Steve Bishop (Research and Information Director) gave an overview of the findings from an ongoing ORX study on this topic ahead of its publication to the wider membership over the summer. Based on interviews with 20 members, this study maps the major trends, similarities, differences and motivations in governance changes. It was a very popular session and generated lots of questions and discussion, which attendees were then able to explore in more detail in smaller breakout groups.
Path to success: Speed, scale and insights
Following on from yesterday's opening session about the ORX strategic vision (read the blog covering insights from day one for more information), the next subject on the agenda was 'How to manage risk at speed, at scale and with new insight'. This session provided our leadership community a platform to discuss solutions to four key challenges with their peers:
- How to measure non-financial impacts
- How to 'join the dots'
- How to risk-manage change
- How to manage emerging risk
The benefits of a process-orientated view of risk
A growing number of firms are developing a process-orientated view of operational and non-financial risk. Doing so offers an end-to-end perspective that complements the shift to customer-oriented management, supports efforts to increase resilience and offers a potential perspective to 'join the dots'. This session explored the benefits of a process-orientated view. It included outcomes of our practice paper on processes and services and a talk from a representative of one of ORX's member institutions.
Risk management benefits include
- Resilience
- Third party management
- Risk Identification
- Control effectivenessand optimisation
Process management benefits include
- Process optimisation
- Organisational design
- Cost
The ORX Reference Process and Service Library
In 2024, we published the ORX Reference Process and Service Library – an essential reference guide to typical processes and services within financial organisations, covering both banks and insurers. This vital risk management tool consists of a Process Library and a Service Library, both mapped to each other at Level 3. As part of the work we did with our members to build the library, we also published a practice paper. The library and the paper are both available to all ORX members on our website. Or, get in touch with us to discuss other options for access.
Where next for third party/ecosystem risk?
Our vision paper highlighted the ever-increasing reliance of financial services on an ecosystem of partners. In the last talk of the day, Mike Constantinou and Helen L'Abbate, Deputy Director of Research and Information at ORX, shared an update from another project we're working on – the Third Party Ecosystem Risk Initiative. Challenges we've identified so far include concentration risk, oversight and integration into the risk framework. Following an overview of the initiative's progress, attendees then discussed their organisational strategies on the use of third parties/ecosystem, resourcing and where they want to be in three to five years.
Thanks to everyone who attended this year's event. We were delighted to have been joined by over 40 Heads of Operational Risk (or equivalents) from financial firms all around the world. The success of our events rests on the active participation of our delegates and LeadersConnect Live was full of fruitful and insightful discussions. Thank you to everyone who contributed.
If you attended the event, then please keep an eye out for a more detailed summary coming soon. We will also shortly be releasing a podcast in which the ORX team will be sharing their personal key takeaways.
