Risk Management Association launches RMA Risk Maturity Framework

The  Risk Management Association (RMA) and Strategic Risk Associates (SRA) have launched a risk management tool for  RMA members and the industry. The  RMA Risk Maturity Framework, powered by SRA Watchtower, measures the effectiveness of a bank’s overall risk management program against industry standards and regulatory guidance—and suggests action to improve performance.

RMA, which advances enterprise-wide risk management in the financial services industry, and SRA, a provider of enterprise risk and performance management solutions, said the framework is structured around nine pillars and measures 45 categories of risk across a bank. In early 2022, a peer benchmarking feature will be added that allows banks to measure their maturity against similar institutions. The  RMA Risk Maturity Framework utilises SRA’s trusted Watchtower cloud-based solution, which provides a single, integrated solution to manage risk.

“Recognising the need for a standardised way to measure a risk program’s effectiveness, SRA is excited to partner with  RMA to launch this innovative solution to all  RMA members,” said Michael Glotz (pictured), CEO of Strategic Risk Associates. “Gone are the days of purchasing and downloading a stale Excel framework. Our Framework lets organisations self-assess their risk program and quickly make progress on their risk maturity journey.”

New users of the Risk Maturity Framework begin by completing an evaluation and receiving scorecard results via the SRA Watchtower risk and performance management tool. The framework allows users to quickly assign tasks to owners across each line of business and provides a clear action plan for immediate implementation.

Both diagnostic and prescriptive, the framework helps users identify and prioritise areas for improvement, and tracks progress toward quarterly and annual goals through Watchtower’s visualisation and reporting capabilities. The Framework is a way to educate executive teams on risk maturity progress and aims to help facilitate agreement with the board risk committee on the bank’s expected maturity level. It can also inform development of a two-to-three-year risk roadmap and be used to inform regulators on the bank’s risk maturity progress.

“ RMA’s partnership with SRA provides a solution that will assist RMA member institutions of all sizes in achieving a more mature risk culture,” said  RMA president and CEO Nancy Foster. “The  RMA Risk Maturity Framework, powered by SRA Watchtower, complements  RMA’s mission of advancing enterprise-wide risk management by providing an effective way to evaluate risk maturity progress.”

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