Technical Risk Capability Framework

As the aftershocks of the Global Financial Crisis continue to be felt, the Risk Function worldwide has found itself at a critical maturity juncture,  following its evolution into a key enabler of business strategy across the financial services industry.

Challenge

During the second half of 2012, one of Australia’s ‘Big 4’ banks recognised the opportunity to become a best practice leader in the field of risk. To achieve this goal, a number of challenges resulting from maturing processes and newly formed teams needed to be overcome. Specifically, greater role clarity and a common language for technical skills were needed to strengthen and shape conversations regarding development, career pathways and strategic workforce planning.

The bank therefore sought assistance to develop a Technical Risk Management Capability Framework to accurately reflect the skills needed to support the performance and development of risk management professionals.

Approach

Curve Group worked closely with the Australian Chief Risk Officer, Learning & Development Partner, and HR Business Partner to facilitate and develop a capability framework for the Risk Function.

In stage one, it was necessary to define the internal needs of the Risk function, prior to testing these through a number of lenses including the organisation’s business strategy, best practice, the future goals and needs of the Risk profession and the overall banking environment. An internal review of other capability frameworks and models in use throughout the organisation was also conducted to ensure appropriate alignment and integration.

In stage two, Curve Group worked closely with the Risk Senior Leadership Team to validate job families and define the  technical capabilities critical to delivering value to the organisation. Risk subject matter experts (SMEs) were then engaged in focus groups to provide additional depth and “flavour” to the capabilities as well as to refine the language used.

Finally, a validation workshop with key stakeholders was conducted to achieve sign off of the framework and to ensure integration with key people processes.

Outcomes

Throughout the definition and build of the Technical Risk Management Capability Framework high levels of engagement with SMEs across the globe ensured the relevance, quality and utility of the final framework.The development of capability-based job families also led to the definition of  broad career opportunities across the Risk Function, providing greater clarity for employees. Finally, alignment with key people processes including recruitment, performance management, succession planning, career development and individual development planning was also achieved by mapping, understanding and connecting key integration points.

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