AIBAThe People Side of Risk

Management & Compliance

Lindamarie Werntz CoatmanU.S. Head of Human ResourcesChina Merchants Bank New YorkDecember 3, 2014

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The Dynamics of an Organization

Individual

GroupOrganization

Home Country

U.S.A.

Boom

Bang

Boom

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How Do People Drive the Organization?

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Where is the risk?

Operational Risk

Market/Reputational Risk

Financial Risk

Organization

Group

Individual

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The Mechanics of the Organization

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The 3 Drivers of the Talent Engine

Organization/ Executive

Group/ Manager

Individual/ Staff

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The Mechanics of Talent

Effective risk ownership depends on everyone understanding what their

risk-related responsibilities are, knowing how to carry them out, and

having recourse to appropriate guidance if and when the “standard” risk management processes break

down.*

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* Deloitte, “The people side of Risk Intelligence”

Employee

Professional SkillBase

ExperienceLevel

TeamSkills

CommunicationSkills

Self Initiative

Resilience

AdaptabilityInfluencingSkills

Cultural

Awareness

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Employee Attributes

10

Individual Driver

Individual/ Staff

Capability

Capacity

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The Drivers….

Staff EmployeeCore KnowledgeProcessesThe DetailsRisk Execution

Employee

Professional SkillBase

ExperienceLevel

TeamSkills

CommunicationSkills

Self Initiative

Resilience

AdaptabilityInfluencingSkills

Cultural

Awareness

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Employee Attributes

Staff

Professional SkillBase

ExperienceLevel

TeamSkillsCommunication

Skills

Self Initiative

Resilience

AdaptabilityInfluencingSkills

CulturalAwareness

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Employee Attributes - Staff

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Group Driver

Group/ Manager

Perfo

rmance

Leadership

The words and actions of employees’ immediate supervisors have an especially important impact on

employees’ own behavior; boards and executives need to monitor the “tone in the middle” so that managers are along

the chain of command know to “walk the talk” of ethics.*

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* Deloitte, “The people side of Risk Intelligence”

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The Drivers….

Manager:Client ServiceBusiness AcumenCommunicationRisk Management

Employee

Professional SkillBase

ExperienceLevel

TeamSkills

CommunicationSkills

Self Initiative

Resilience

AdaptabilityInfluencingSkills

Cultural

Awareness

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Employee Attributes

Manager

Professional SkillBase Experience

Level

Team SkillsCommunication

Skills

Self Initiative

Resilience

AdaptabilityInfluencingSkills

CulturalAwareness

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Employee Attributes - Manager

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Organizational Driver

Organization/ Executive

Ob

jectiv

es

Business

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The Drivers….

ExecutiveTeam BuildingStrategyRisk Culture

Employee

Professional SkillBase

ExperienceLevel

TeamSkills

CommunicationSkills

Self Initiative

Resilience

AdaptabilityInfluencingSkills

Cultural

Awareness

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Employee Attributes

Executive

Professional SkillBase

ExperienceLevel

TeamSkills

CommunicationSkills

Self Initiative

Resilience

AdaptabilityInfluencingSkills

CulturalAwareness

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Employee Attributes - Executive

Business Objectives (Executive)

Leadership Performance (Manager)

Capability & Capacity (Staff)

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Success Levels: A Different Perspective

Balance ScorecardSuccession Planning

Leadership CompetenciesContingency PlanningPerformance ManagementOwnership & Accountability

Individual Contributor CompetenciesPerformance ManagementEmployee DevelopmentOwnership & Accountability

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The Dynamics of an Organization

Individual

GroupOrganization

Home Country

U.S.A.

** To protect the confidential proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of the presenter.