ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Compliance and Risk

The New Risk Management Org Chart

February 23, 2018
Reading Time: 2 mins read

By Yvette Hollingsworth Clark

As a result of the fintech and regtech evolution—or, dare I say, revolution—of using emerging technology to improve compliance and risk management activities, as well as overall business operations, many question whether technology will replace certain risk management jobs. The answer is a mix of both yes and no.

As old jobs go away, new jobs are created. One could argue that jobs are not replaced but enhanced in response to emerging technology being used as an aid to human intelligence. Every tech solution—from mousetraps to machine learning—has a human in it somewhere who had the idea to explore how technology can:

  • Make humans more efficient
  • Increase productivity
  • Improve accuracy
  • Stimulate creativity

With this in mind, emerging technology should not be viewed as the threat of job elimination, but rather as a tool that can help one maintain a competitive advantage in their role.

As we get smarter and do things differently through the use of emerging technologies, compliance and risk management will need to keep pace by staying smarter too. As such, the traditional role of a compliance officer or risk manager may evolve to a role such as digital ethics officer, or DEO. I envision a DEO being responsible for creating and maintaining a “responsible digital network policy” that would govern how digital solutions are developed and used and ensuring that enabling inputs such as technology codes, algorithms and data queries are designed and operationalized in an ethical manner. The DEO would need to understand what bad coding looks like and have a full understanding of how technology designed to do good can be manipulated to do bad things, as well as be positioned to detect and monitor for anomalies on a continuous basis.

Another example of a new role for compliance and risk officers is as a data governor. Chief data officer is not a new role, but a CDO generally tends to focus on maintaining data architecture, ensuring data integrity as it pertains to source systems and helping build queries for analyses. Within this context, a data governor would focus on the use case of the data to ensure the data is being used responsibly and for a business purpose that avoids creating undue exposure or potential harm to a customer, such as predicting behavior based on inputs that are irrelevant to assessing one’s ability to repay a loan (for example, the content or frequency of ones’ social media posts or fantasy football results).

I see new and exciting opportunities on the horizon for compliance and risk management professionals. As greater connectivity among technology architects, data architects, coders, risk management officers, lawyers, and research and development teams begin to jell, the need for risk algorithm specialists, risk data scientists and regulatory coding experts is already upon us.

Yvette Hollingsworth Clark is EVP and regulatory innovation officer at Wells Fargo. She was named to American Banker’s “Most Powerful Women in Banking: Women to Watch” list in 2017.

Tags: Big dataEthicsFintechRisk management
ShareTweetPin

Related Posts

From process efficiency to ‘digital employees’

From process efficiency to ‘digital employees’

Human Resources
November 5, 2025

Artificial intelligence tools are at the heart of large banks’ innovation strategies, according to CEOs of BNY, Wells Fargo and U.S. Bancorp.

Fed releases agenda for upcoming conference on large bank capital requirements

Fed finalizes revisions to rating system for large banks

Compliance and Risk
November 5, 2025

The Federal Reserve finalized revisions to its supervisory rating framework for large banks to address the “well managed” status of the institutions.

Treasury Department seeks feedback on stablecoins, illicit activities

ABA, associations share recommendations for implementing Genius Act

Compliance and Risk
November 5, 2025

As the Treasury Department crafts regulations to implement the Genius Act, it should seek to preserve the benefits of payment stablecoins without causing unnecessary risks for customers, credit availability and financial stability, ABA and four associations said in...

Gould outlines OCC’s review of ‘debanking’

Gould outlines OCC’s review of ‘debanking’

Compliance and Risk
November 4, 2025

The OCC is taking action to address concerns about “debanking,” including through the licensing process and CRA exams, Comptroller of the Currency Jonathan Gould said at a conference in New York City.

Bowman: Regulation preventing banks from engaging in economic innovations

Bowman: Regulation preventing banks from engaging in economic innovations

Newsbytes
November 4, 2025

The economy has changed significantly since the 2008 financial crisis, but regulation is holding back banks from fully engaging with those changes, Federal Reserve Vice Chair for Supervision Michelle Bowman said.

BIS: Stablecoins fail as ‘sound money’

ABA, state associations: Uphold Genius Act prohibition on stablecoin interest payments

Compliance and Risk
November 4, 2025

ABA and 52 state bankers associations urged the Treasury Department to uphold the Genius Act’s prohibition on stablecoin issuers paying interest or yield on payment stablecoins.

NEWSBYTES

Mortgage rates tick up, remain near 2025 lows

November 6, 2025

FDIC issues relief guidance for Minnesota and Alaska banks affected by storms

November 6, 2025

From process efficiency to ‘digital employees’

November 5, 2025

SPONSORED CONTENT

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

November 1, 2025
5 FedNow®  Service Developments You May Have Missed

5 FedNow® Service Developments You May Have Missed

October 31, 2025

Cash, Security, and Resilience in a Digital-First Economy

October 20, 2025
Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

October 1, 2025

PODCASTS

Podcast: The Erie Canal at 200

November 6, 2025

Podcast: Why branches are top priority for PNC

October 23, 2025

Podcast: From tractors to drones, how farming tech affects ag lending

October 16, 2025

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.