AFB Practice Workshop: Establishing and Embedding a First Line Risk and Control Function

UK regulators are focusing on firms strengthening their internal control frameworks. Many member firms are therefore assessing the business case for a new or enhanced first line risk and control function.  What is commonly referred to as ‘line 1.5 or 1b’ role can deliver tangible benefits, including:

• More effective use of firm-wide resources to manage risk and internal controls, including a more focussed and independent second line;
• More consistent and higher quality risk and control self-assessments, including risk events management; and
• Embedding accountability and ownership where it is needed.

Firms need to assess factors such as the maturity of the business, likely cost, operating culture, the maturity of the risk management and internal control frameworks, degree of change or transformation activity, strength of the second and third lines of defence, and regulatory expectations.   

This practice workshop hosted by BDO experts will consider these issues and provide insight into how firms can create and maintain an effective 1.5 line of defence.

Why attend?

Attendees will have the opportunity to take part in an interactive session with open questions, group discussions, and sharing of expertise from the team at BDO LLP.

This workshop will provide:

• The pros and cons of establishing or enhancing a Line 1.5
• An overview of what a good Line 1.5 looks like
• The factors needed to ensure the Line 1.5 will deliver value over the longer term; and
• How an effective Line 1.5 can impact the work of the second line and internal audit.

Attendees will be seated in groups for breakout sessions and will feed back their thoughts to the rest of the group, with each discussion facilitated by a member of the BDO team.

Who should attend?

First Line Risk and Control officers; Risk and Compliance Officers; Operations officers, and Internal Auditors

Speakers

Michael Haddon

Michael is a Principal in BDO’s Financial Services Advisory practice with over 25 years’ experience providing assurance and advisory services to financial services clients in the UK and overseas.  Michael specialises in providing internal audit and risk management advice and services including quality assurance work, training and delivering outsourced services.

Michael provides risk focused outsourced and co-sourced internal audit services to clients in the UK financial services sector.  This role requires significant interactions with the business, risk and compliance functions and Audit Committees in developing and delivering the annual audit plans.  It has also included assessing the effectiveness of first and second line control activities of firms at varying levels of internal control maturity.

Michael is a qualified Chartered Accountant, a member of the ICAEW’s Internal Audit Panel and a member of the IIA.

Shrenik Parekh

Shrenik is a Director in BDO’s Financial Services Advisory practice and leads BDO’s FS Governance and Risk Advisory team.  Shrenik has deep experience in providing risk and regulatory advisory services to foreign banks operating in the UK regulatory environment and has particular specialist knowledge in relation to the areas of Board effectiveness, governance, conduct and culture.  Shrenik works closely with Board members and the NED community in relation to regulatory, governance and risk matters.

Logistics

Format:   In-person at BDO LLP, 55 Baker Street, London W1U 7EU

Cost:        £255.00 + VAT

Date:       Tuesday 5 November 2024

Time:       15:30 – 17:30 (Registration and coffee from 15:00-15:30)

Places:     Maximum of 30 people

If you would like to submit a question or have any specific areas that you would like the session to address, please send them to the AFB at secretariat@foreignbanks.org.uk. You will receive details on how to join this in-person Workshop a week before the event.