This Week in RiskTech News: March 27th
March 27, 2023
Welcome to this week’s installment of RiskTech News, where we’ll be diving headfirst into the latest developments and pressing issues facing risk managers all over the world. From cutting-edge research shedding new light on risk management to high-profile hacks and vulnerabilities affecting major corporations, you won’t want to miss the stories we’ve curated for you. With so much at stake in the world of risk management, staying informed has never been more important. So sit back, buckle up, and get ready for a thrilling ride through the world of risk tech!
Wall Street Journal: Bank Failures Train Spotlight on Shortcomings in Risk Management
- Recent bank collapses have highlighted shortcomings in risk management oversight by boards.
- Risk committees, required for banks with $50 billion or more in consolidated assets, often lack the expertise and clout to push back against senior management.
- Research suggests that most of the failures from the previous financial crisis can be traced to deficiencies in risk governance.
- Silicon Valley Bank and Signature Bank are examples of boards lacking qualified members with experience in risk management, as well as a lack of clear parameters for their roles.
- Surveys show bank leaders are increasing their focus on risk management, but the culture at banks is ultimately what determines whether these efforts succeed.
- As a Chief Information Security Officer, communicating effectively with stakeholders and fighting for the budget is key.
- To make the case to proactively defend against threats and gain budget approval, CISOs need to be able to articulate requirements in terms of measurable goals and KPIs. Present requests in a way that’s understandable to the C-suite and board.
- Retain security staff by offering competitive pay, paths for career advancement, prevention of job burnout, and professional development opportunities.
- Strive for personal knowledge growth by taking training seminars, reading white papers, and connecting with peers through organizations like The Cybersecurity Collaborative or The Cybersecurity Collaboration Forum.
- Spread security awareness throughout an organization by organizing seminars or other educational programs that are short yet frequent.
Politico:‘Lessons have not been learned’: FDA knew of positive test months before latest infant formula recall
- Reckitt issued a recall of Enfamil ProSobee Simply Plant-Based Infant Formula due to the possibility of cross-contamination with Cronobacter sakazakii, a deadly pathogen.
- The recall followed a massive Abbott Nutrition recall from 2021 and a bureaucratic delay from FDA.
- A hearing on the FDA’s handling of the incident is being held and documents are being requested for review.
- FDA found food safety violations at the Zeeland plant in July and had received non-illness complaints prior but didn’t obtain additional info until February which led to their concerns about adequate cleaning related to two product lots subject to the recall.
- There have been four formula recalls over Cronobacter contamination in the past year, more than any other time in the last decade combined, leading experts to question if lessons have been learned.
- Despite the insistence that they lack authority, some consumer advocates argue FDA is interpreting the law too narrowly and has failed to use existing authority.