Aaron Prater, VP of Operational Risk Management at Alloya, discusses ERM committee structure, technology projects, remote risk leadership challenges, and cooperative philosophy in risk management. He shares insights on data-driven approaches, transactional monitoring with AI, and risk discussions with member credit unions.
Aloya's operational risk management structure is based on committee engagement and a data-driven approach to align with organizational goals.
Aaron Prater emphasizes the importance of prioritizing operational risks and aligning risk controls with strategic objectives to create value.
Deep dives
Aaron Prater's Background and Experience in Risk Management
Aaron Prater, Vice President of Operational Risk Management at Aloya Corporate Federal Credit Union, shared his distinguished career path in risk management. Starting from his early roles in wealth management and retail banking, Aaron's experience led him to specialize in risk analysis at FIS, where he handled diverse risk-related responsibilities such as SOC reporting and vendor risk management. His journey showcased the gradual understanding and application of risk control measures throughout his career.
Evolution of Operational Risk Management at Aloya
Aaron discussed the establishment and expansion of operational risk management at Aloya in 2022. This newly created role aimed to enhance the operational risk program beyond transactional risks to encompass all operational aspects. Aloya's risk organization structure now includes four key pillars led by experienced professionals like Aaron. The emphasis on consistent risk assessment and engagement through committee structures underpins Aloya's enterprise risk management framework.
Key Focus Areas in Operational Risk Management
Operational risk, rooted in people, processes, and technology, underpins Aloya's risk management approach. With a data-driven strategy, Aaron highlighted ongoing initiatives like technology projects focused on new core systems and enhanced transaction monitoring using AI and machine learning. The goal is to align operational risk practices with organizational objectives and members' needs, ensuring value creation while maintaining a proactive risk management stance.
Challenges and Strategies in Operational Risk Management
Addressing the broad spectrum of operational risks, Aaron shared insights on prioritization and strategic alignment. By adhering to the 'CUP' philosophy, consistency in risk management, understanding risks comprehensively, and aligning risk control with strategic objectives become focal points. Highlighting the importance of not chasing every risk but focusing on key areas for value creation, he underscored the significance of engagement, data-driven approaches, and cooperative risk management efforts.
Aaron Prater, Vice President of Operational Risk Management at Alloya Corporate Federal Credit Union, joins David in a discussion about Enterprise Risk Management.
Topics include:
- How operational risk management is organized at Alloya - What the ERM committee structure is at Alloya - What's included in Aaron's operational risk area - A large technology project under way at Alloya - Working towards enhanced transactional monitoring with machine learning and artificial intelligence - Aaron's data-driven approach to the new role, and why - The challenges of being a remote risk leader, which is becoming more common in all roles since the pandemic - How Aaron is talking with member credit unions and formulating how Alloya can help from a risk perspective - Challenges in the operational risk area - The risk management philosophy of C.U.P.