NatWest Group, the largest corporate bank in the United Kingdom, has been honored with the ‘Celent Model Risk Manager Award of the Year’ for its successful initiative to simplify and automate risk and change management processes. This prestigious award recognizes the company’s ability to reduce evaluation cycle times using governance models. One example is product governance, which has decreased from 4.5 days to less than 20 minutes, marking a significant milestone in their “moonshot” goal of reducing the cycle time from 73 days to 73 minutes.
NatWest’s approach demonstrates a commitment to process excellence and operational efficiency. By utilizing low-code automation as a catalyst for agility and speed, NatWest has been able to unify data in a data fabric, quickly redesign workflows, increase automation, and strengthen risk controls. This achievement exemplifies a remarkable synergy between strategic foresight and technological prowess.
Previously, navigating multiple levels of internal scrutiny and approvals posed a challenge for NatWest. Under the previous governance process, a policy change could take between three to four weeks to complete. With all the required changes and risk evaluations, the time from idea to implementation could span three to four months. However, NatWest’s team found opportunities to automate 46% of data in their governance processes.
“Our goal was to reduce the governance process from 73 days to 73 minutes. We knew that’s what we had to achieve,” said Steve Marjot, Head of Change at the Centre of Excellence at NatWest Group. “Our low-code automation solution became the central hub, the workflow management system, and a key component of our data fabric, incorporating the right data and rules when needed. We’re still on the journey, but we have made significant progress to date.”
NatWest’s Change Governance initiative is poised to lead the way in creating innovative process automation approaches for management teams, empowering them to quickly and effectively implement and execute changes. The bank’s focus on productivity improvement, risk reduction, and enhanced customer experience showcases its commitment to excellence in the financial industry.
In addition to the information provided in the article, there are several current market trends, forecasts, and key challenges associated with risk and change management processes in the banking industry.
One market trend is the increasing importance of digital transformation in the banking sector. Banks are leveraging automation, advanced analytics, and artificial intelligence to streamline their operations and improve risk management. NatWest’s utilization of low-code automation aligns with this trend and demonstrates their commitment to staying ahead in the digital era.
Another trend is the growing focus on data and analytics in risk management. Banks are increasingly relying on data-driven insights to make informed decisions and mitigate risks. NatWest’s initiative to unify data in a data fabric reflects this trend and shows their dedication to leveraging data for improved risk and change management.
In terms of forecasts, the market is expected to witness continued advancements in technology that will further enhance risk and change management processes. Automation, machine learning, and advanced analytics are predicted to play a significant role in transforming these processes, enabling banks to minimize risks and respond to changes more effectively.
One of the key challenges associated with risk and change management is striking the right balance between automation and human expertise. While automation can streamline processes and improve efficiency, it may also introduce new risks if not properly managed. Therefore, banks need to ensure that appropriate controls and governance frameworks are in place to mitigate these risks.
Another challenge is the evolving regulatory landscape. Banks operate in a highly regulated environment, and any changes to regulations or compliance requirements can have a significant impact on risk and change management processes. Banks like NatWest must stay updated with regulatory changes and adapt their processes accordingly to maintain compliance.
Advantages of NatWest’s approach to risk and change management include increased efficiency, reduced evaluation cycle times, and improved risk controls. By automating a significant portion of their governance processes, NatWest has been able to reduce evaluation times from days to minutes, enabling faster decision-making and implementation. This not only improves operational efficiency but also enhances the bank’s ability to respond to market changes in a timely manner.
Disadvantages of relying heavily on automation include the potential for errors or technical glitches. While automation can improve efficiency, it also carries the risk of introducing new vulnerabilities if not properly implemented or monitored. NatWest and other banks need to ensure they have appropriate controls and monitoring mechanisms in place to address these risks and mitigate any potential negative impacts.
To stay updated on the latest developments in risk and change management in the banking industry, you may find the following link to the Financial Times (https://www.ft.com/) useful. The Financial Times covers a wide range of topics related to the banking and financial services sector, including risk management, regulatory changes, and industry insights.