| | JUNE 201919CIOReviewBy Anil Hinduja, Executive Vice President & Chief Enterprise Risk Officer, Freddie MacIt's a thrilling time to be a risk management leader in financial services, as access to Big Data and advances in technology unleash opportunities to strategically improve business models. The "Internet of Things" is transforming businesses, products, delivery mechanisms and, more importantly, increasing client expectations. For companies that adopt, advances inartificial intelligence and machine learning hold the promise of reinventing both the customer and employee experience, while protecting them from new and evolving vulnerabilities and threats. Risk management leaders' work with corporate executives to navigate a dynamic environment where opportunities are developing and changing every day. And those leaders face one of the key challenges of our time: creating a risk organization, establishing processes and governance that are not only effective in managing risk but also highly efficient in terms of responsiveness to the fast-changing technology and regulatory landscape.Of course, emerging technology, digital processes, new business models and the pace of change creates risks and threats that we and other financial services firms must manage effectively. However, inefficiency increases financial or operational risk, particularly if the organizations do not adjust, respond to or prioritize in a dynamic manner. Understanding our risks and adapting helps us navigate this complex landscape--and assist us in making wise business decisions. This effectiveness and efficiency imperative affect every aspect of our organization at Freddie Mac. STRATEGIC RISK MANAGEMENT Freddie Mac is adopting a strategic approach to risk management. This is a major effort taking place not just at our company ­ but within many major financial institutions. For Freddie Mac, some of the practices include the following:I. SHARING CROSS-FUNCTIONAL INSIGHTS. We have recruited experts and specialists across the spectrum of risks, from information, technology, financial, and compliance risk. We are fostering an environment where employees can work more collaboratively, attacking a challenge from all angles and solving it once, rather than working in parallel. For example, we are improving our ability THE BUSINESS OPPORTUNITY OF IMPROVING RISK MANAGEMENTHOW FREDDIE MAC WILL LEAD THE MARKET THROUGH A HOLISTIC APPROACH TO RISK MANAGEMENTAnil Hinduja
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