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03 April 2017

Risk management

Learn more about our three lines of defence
Rylee Muddle, Chief Risk Officer

Risk management is a core function of any company. It always has been, but particularly so in this day and age with most businesses running cross-border operations – fund managers being the prime example of this with complex layers of investors and investments often spanning multiple jurisdictions.

Tried and tested – our three lines of defence

At the Aztec Group, we have always gone to great lengths to manage risk to both our business and clients. All too often, businesses make risk management the concern of one department, but not here. Yes, we have a risk department, but that doesn’t mean it isn’t the responsibility of the wider team either.

Perhaps, the best way of illustrating our approach to risk management is by explaining our tried and tested three lines of defence rule, which all of our employees live by.

The first line perfectly encapsulates our risk culture across the organisation, with all employees given the training they need to perform their roles with risk in mind. In practice, this means each team follows our “six eyes” principles of management oversight, which requires all documents to be reviewed internally by three members of the department, in addition to rigorous checklist controls and procedures.

The second line is provided by our risk and compliance experts who sit within the relationship teams. We’ve never viewed risk as a standalone function, but as a key component of our service and that’s why most of our risk specialists are incorporated into front line teams, where they are on hand providing guidance as and when it’s needed. Then you have our central risk team, who are available to offer oversight and whatever further support might be required.

And last, but not least, the third line is our audited control framework and ISAE Type II accreditation. This is effectively our stamp of approval from the auditors, meaning our clients can be confident and reassured that we are working to the highest standards of corporate governance.

Risk – it’s everyone’s business

To say we’re one of the only businesses in our sector to place such high priority on risk would be misleading, but we do believe our approach makes us stand out. Compliance and risk is about collective responsibility and ensuring that everyone plays their part – with us it’s firmly embedded in our culture.


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