Cost Effective Risk Solutions in Financial Services

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WHAT WE DO

2LOD specialises in providing cost effective Second Line of Defence solutions across the financial sector, both in the UK and Ireland.

We recognise the high cost and manpower required by firms to maintain compliance with their regulatory obligations and the conflicting pressures arising from profit goals and external requirements.

2LOD works with your senior management team and those responsible for risk and compliance oversight to build a robust, professional solution.

We can offer these specialist services, fully outsourced, co-sourced or as a consultancy.

OUR SERVICES

We can offer these specialist services, fully outsourced, co-sourced or as a consultancy:

Risk Management

Planning, recording and monitoring for compliance and operational risks including regulatory change updates.

Risk Consultancy

Immediate, professional support and advice in corporate governance, regulatory intervention, risk management and business coaching.

Risk Policy Frameworks

Developing the structure underpinning the risk model to understand the opportunities or threats that can affect your business meeting it’s objectives.

KYC, AML FinCrime

Support in operating a secure business in an insecure world.

Risk Management

The planned management of your risks.

All of these services can be provided as a co-sourced or fully outsourced arrangement.

Compliance Monitoring

Regulatory planning and reviews to suit your timescales,

2LOD can provide a full regulatory compliance monitoring solution, or elements tailored to your needs. This includes:

• The development of a Regulatory Monitoring Plan

• Experienced professionals to undertake reviews

• Management reporting

2LOD can undertake your annual reviews according to an agreed plan, thereby reducing the need for you to employ full-time risk monitoring staff.

Operational Risk Management

Managing the risk of loss from failed processes systems, as well as the human factor.

2LOD will work with your operational teams and risk function to identify and record the controls you already have, as well as identify areas for enhancement. Monitoring plans and risk evaluation reviews are linked to your regular reporting requirements to senior management and governance committees.

Agreed activities to reduce the likelihood or impact of an event will be managed to agreed timescales.

Upstream Risk

Regulatory change that will affect your business.

2LOD provide a bespoke upstream risk reporting service, highlighting the regulatory changes that will affect your business in the future, allowing you time to plan ahead with the maximum lead time. The report will be a concise overview of the main points of the change and the impact on your business, allowing your senior management, with the help of 2LOD, to address this quickly and efficiently.

2LOD will help you identify business opportunities arising from the regulatory development, not simply the costs.

Risk & Policy Frameworks

The structure underpinning the risk model.

Risk Framework Development

Building the risk model.

Through working with the senior management team, 2LOD will help develop and implement a strong risk framework that is aligned to your business model and any planned expansion.

2LOD will ensure your business has the appropriate risk framework and tools to ensure you can identify, assess, treat and manage your risks, so you get the right information to make the right decisions.

Where necessary 2LOD can provide support and guidance in aligning the current risk framework with the ICAAP and LAA requirements.

Policy Framework & Management

The adoption of a comprehensive policy structure.

2LOD will assist in the development of a structured policy and procedure management database, incorporating update schedules and a strong ownership plan.

Policy Management can be linked to the Operational Risk and Compliance service offered by 2LOD to ensure a consistent approach is applied to policies and procedures by both the business and the risk functions. 2LOD can also introduce a robust system of monitoring to provide senior management with the comfort that the right staff have read (and understood) the most up-to-date documents.

Risk Consultancy

Immediate support, where and when you need it.

In addition to providing specialist consultancy services in Compliance, Operational risk and Regulation, 2LOD can assist in these areas.

Corporate Governance

Ensuring effective, responsible management exactly where it is required.

2LOD will assist in the development of an appropriate corporate structure, this aims to:

• Determine where current structures add value and where there are inefficiencies.

• Help the firm address a specific area of concern in the current governance structure or Board committees.

• Align the governance structure with your strategic plans.

• Help you comply with national and international governance standards.

Assistance in this area will normally be provided by a director of 2LOD.

Regulatory Intervention

Professional support when you need it most.

In the event of a regulator or trade body seeking assurance that the firm is in full compliance with their requirements, 2LOD can provide senior, experienced and professional support.

Depending on the extent of the regulatory intervention, assistance would be provided by one or two of its directors. All of the 2LOD directors have had direct experience of assisting companies across the financial services sector through what can be a challenging and worrying time.

Business Coaching

Providing your senior management team with the skills and information it needs.

Coaching can be provided to the senior management team in respect of:

• The regulatory requirements of their role, such as the Senior Management Regime;

• More specialist training in specific areas of business, such as senior committee effectiveness reviews and reporting;

• Particular events, such as a planned meeting with a regulator.

Assistance in this area will normally be provided by a director of 2LOD.

KYC, AML & Financial Crime

Protecting your business against financial crime, while meeting your regulatory obligations.

All of these services can be provided as a co-sourced or fully outsourced arrangement.

All financial services companies have obligations under financial crime legislation, and this is both a sensitive subject and one that needs to be carefully managed throughout the organisation.

2LOD experts will support your company in recognising its obligations and helping develop a compliant strategy to minimise the loss and impactof financial crime. The advice will be developed through the engagement with your senior management team and risk function, building a foundation from the items below:

• Develop or enhance a robust client identification process (Know Your Customer- KYC)

• Sanctions Compliance.

• Assess or develop Anti-Money Laundering (AML) training, in line with the individual roles of staff.

Provide Anti-Bribery & Corruption (ABC) training and advice.

Meet The Team

2LOD takes its name from the common risk principle of the ‘Three Lines of Defence’:

1LOD First Line of Defence:
The operational & managerial functions of a firm
 that own and manage the risks.

2LOD Second Line of Defence:
The risk management and compliance role
 that oversee risks.

3LOD Third Line of Defence:
The auditors and other external oversight bodies that provide independent assurance.

Barry Howard

Barry Howard

Director

Barry has previously held the role of Chief Risk Officer and Board Director for a FTSE 250 Wealth Management firm. With over 30 years experience in the finance sector, including supervisory and advisory roles at both the Regulator and the London Stock Exchange, he has gained a strong reputation in risk management.

Professional Experience

    • Responsibilities  have included the overall development, oversight and management of Compliance, Risk, Anti-Money Laundering, Fraud, Training & Competence and Legal functions in a number of firms.
    • A qualified business coach, he has supported the senior management of a number of firms undergoing regulatory challenge.
    • Interim positions have included acting as Head of Compliance and the Money Laundering Reporting Officer roles for cross border banking concerns.
Patricia Celata

Patricia Celata

Director

The previous Head of Operational Risk at a FTSE 250 Investment firm, Patricia has strong risk management and regulatory experience obtained through her career across the financial services sector. She has also gained valuable experience whilst working in the accountancy field assisting SMEs and acting as a fund accountant.

Professional Experience

  • Designed and implemented Operational Risk Management Frameworks for a number of firms, including wealth management, retail and consumer finance sector.
  • Undertaken risk reviews across the financial sector. This includes Pricing, Business Continuity Management, Outsourcing, HR and Senior Manager Responsibilities.
  • Developed strategies to address regulatory concerns for companies and managed projects to implement these actions
  • Provided risk advisory services to a number of firms undergoing regulatory change.
Stuart Murdoch

Stuart Murdoch

Director

Stuart has worked in a number of firms across the financial sector since 1987, including merchant and private banks, as well as the wealth management and consumer finance sectors.

Professional Experience

    • He is a regular steering group member and contributor to the UK National Occupational Standards in both Risk Management and Compliance.
    • Advised on regulatory requirements and participated in numerous financial start-ups, including a number of specialist banks, investment firms and consumer credit firms.
    • Held senior roles across the sector, including Interim Head of Risk in a consumer finance organisation and Banking Code Compliance Officer for a private bank. Produced and curated a wide range of risk polices for a number of organisations.
    • Tailored and introduced Operational Risk systems for a number of companies, including a global provider of online trading.
John Hackett

John Hackett

Director

John has built a wide range of experience over nearly 40 years in the financial sector both   on- and offshore, including the full range of banking services as well as investment and consumer finance. He was previously the Chief Risk Officer and Director of a UK wide private bank/investment management firm.

Professional Experience

      • An experienced leader that has provided interim support at senior level across a range of companies. This has included the development, introduction and embedding of a risk framework and governance structure for a major Forex and spread betting firm.
      • Developed the policy framework and First Line of Defence (1LOD) monitoring team for a FTSE 250 investment manager
      • Significant levels of experience of developing, running and engaging with teams across the Three Lines Of Defence.
Cost Effective Risk Solutions in Financial Services
CONTACT US

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Or email us:
info@2lod.co.uk

Or call us:
+44 (0)7825 369108 (UK)
+353 (0) 8734 01298 (Eire)