Financial Planning/Retirement

Over the last several years, one thing has become increasingly clear in the commercial finance world: the Uniform Commercial Code is no longer just paperwork. For funders, lenders and receivables purchasers, UCC-1 enforcement has evolved from a routine filing into one of the most powerful tools in underwriting and contract enforcement.

Many funders historically viewed the UCC-1 financing statement as little more than a standard step in closing a deal. File the lien, move on to the next file, and hope repayment occurred without issue. Today that mindset is changing rapidly. The industry is beginning to recognize that the real value of the UCC-1 lies not simply in filing it, but in actually enforcing the rights it creates.

Under Article 9 of the Uniform Commercial Code, a UCC-1 financing statement publicly establishes a creditor’s security interest in a borrower’s assets or receivables. The filing places the market on notice that a creditor has a claim against certain collateral and establishes priority over later creditors. In simple terms, it functions much like a title on a vehicle or a deed to property. It shows who has rights to the asset.

Where the industry is evolving is in what happens after that filing.

For many years, commercial finance companies treated the UCC filing as defensive protection. It provided leverage in litigation and secured priority if a borrower entered bankruptcy, but the actual enforcement of the collateral was inconsistent. Many funders relied primarily on ACH debits and personal guarantees rather than pursuing the receivables or proceeds covered by their security interest.

“The real value of the UCC-1 lies not simply in filing it, but in actually enforcing the rights it creates.”

That approach is changing.

Funders are increasingly using Article 9 enforcement mechanisms the way the UCC was originally intended. When a borrower defaults, the secured party has the right to pursue the collateral, including accounts receivable and any proceeds derived from those receivables. Under UCC §9-607, a secured party may collect directly from account debtors once proper notice has been provided. In other words, the secured creditor can step into the shoes of the borrower and redirect payments tied to the collateral.

This shift toward direct receivable enforcement is forcing underwriting departments to rethink how deals are structured from the beginning.

One of the biggest changes occurring behind the scenes is that underwriting is beginning to focus less on traditional credit metrics and more on enforceability. The key question funders are asking today is no longer simply whether a borrower is likely to repay. The question has become what happens if they do not.

That change in thinking is having a real impact on how deals are evaluated.

Receivable verification is becoming more important during underwriting. If a funding agreement relies on receivables as collateral, funders want to understand where those receivables originate and how payments move. Identifying processors, payment platforms, and major customers has become part of the underwriting process rather than an afterthought.

Funders are also paying closer attention to lien priority. The UCC operates on a first-to-file priority structure, meaning the first creditor to properly file and perfect their interest typically holds the senior claim to the collateral. Because of this, accurate filings and proper timing are becoming critical components of deal structuring.

Contract language is evolving as well. Security agreements now commonly include provisions that authorize the secured party to redirect payments, contact account debtors, and collect proceeds directly in the event of default. These provisions are becoming central to how funders protect their position.

Another noticeable change is that underwriting teams are beginning to evaluate the borrower’s entire receivable ecosystem. In many industries, revenue does not flow directly from customers into a borrower’s bank account. Payments move through processors, settlement platforms, gateways, and other intermediaries before they reach the merchant.

These payment channels can become critical enforcement points.

Under UCC §9-315, a security interest continues in identifiable proceeds of the collateral. This means that if receivables are assigned as collateral, the secured party’s interest follows those funds as they move through the payment chain. Because of this, funders are increasingly analyzing how revenue flows before they approve a deal.

Payment processors, merchant service providers, recurring billing platforms, and major customers are all becoming part of the risk model. Understanding these payment streams allows funders to identify where leverage actually exists if enforcement becomes necessary.

As reliance on UCC enforcement grows, accuracy in documentation has also become far more important. Small mistakes in a financing statement can create major problems. Errors in the debtor’s legal name, incorrect entity identification, or vague collateral descriptions can weaken a security interest or create priority issues.

Because of this, legal precision is becoming part of the underwriting process rather than an administrative step after funding.

What we are witnessing is the natural maturation of the commercial finance market.

Funders who understand Article 9 and structure their transactions with enforcement in mind are placing themselves in a stronger position when defaults occur. At the same time, borrowers are becoming more aware that a UCC filing is not just paperwork attached to a contract. It represents a real legal claim against assets and receivables.

The UCC-1 financing statement has always been one of the most powerful tools available in commercial finance. The difference today is that more participants in the industry are beginning to use it that way.

As enforcement strategies continue to evolve, underwriting will likely place even greater emphasis on receivable traceability, payment flow analysis, and precise documentation. In the years ahead, the most successful funders will not simply be the ones who close the most deals.

They will be the ones who know how to enforce them.

Paul Young is Senior Executive Vice President & CFO of Liberty Bank, the nations oldest and largest independent mutual bank vs Connecticut’s oldest and largest independent mutual bank. He oversees Accounting, Treasury, Financial Planning & Analysis, Enterprise Project Management, Procurement, Digital Banking, Business Transformation and Strategic Planning.

With over 25 years in financial services, Paul previously served as CFO for Citizens Bank’s Consumer Deposits, Business Banking, and Citizens Access, and as Head of U.S. Strategy and Corporate Development and CFO for various U.S. lines of business at TD Bank. He also held senior financial roles at CIT Corporate Finance, Siemens Financial Services, Prudential Financial, First Fidelity Bank, HSBC and Spicer & Oppenheim. Paul was voted a C-Suite Award Winner by the Hartford Business Journal in 2023 and received the 2024 Special Ambassador of the Year Award from the American Institute of Certified Public Accountants (AICPA).

Paul holds a B.S. in Accounting from Bloomfield College, an MBA from Temple University and completed the Advanced Management Program at Duke University’s Fuqua School of Business. He is a CPA and Chartered Global Management Accountant (CGMA) and has served on several AICPA committees and advisory groups. He has also been involved in academia as an adjunct professor and advisory board member, demonstrating a strong commitment to education.

In today’s rapidly evolving job market, technology plays a pivotal role in transforming the way we approach recruitment and career advancement. As artificial intelligence and automated systems become increasingly integrated into hiring processes, candidates must adapt to the new landscape to turn challenges into opportunities. This shift necessitates a proactive approach to resume optimization and embracing change by acquiring new skillsets so that finance and accounting teammates can thrive in the digital age.

“Finance professionals need to be more strategic than ever, embracing continuous learning and soft skills like critical thinking and communication to thrive in a technology-driven job market”

I used to wait for the Sunday Classified Ads as a primary source of potential positions and then snail mail cover letters and resumes, waiting for what seemed like an eternity to hear back! Now there are so many ways to source and apply for finance positions instantaneously, which makes the process more efficient but also widens the talent pool of candidates. As a result, there is more competition than ever, and I believe finance professionals need to be more strategic than in the past to ensure they have the best chance of being successful in obtaining that “dream job” and avoid the search turning into a nightmare.

Technology is transforming businesses and as a result, employers are looking for finance professionals that are more forward-thinking that can lead change and partner with the business lines to create value. Finance transformation creates opportunities for employees that have a mindset of continuous learning, are adaptable and desire to be on the forefront of creating the future of finance by utilizing artificial intelligence tools. I view technical skills as table stakes right now and believe candidates can distinguish themselves with soft skills which are increasingly important including strategic and critical thinking, communication and storytelling, emotional intelligence.

Although, technology has made the process more efficient and provides greater access to positions for candidates, the use of automated screening may ignore resumes that don’t perfectly match the pre-defined criteria built into the applications and fail to pick-up the intangibles that a human recruiter on the front-end of the screening process may be able to recognize. Like all things AI, there is risk of implicit bias that may be baked into the automated systems leading to unfair exclusion of certain candidates.

From an opportunity perspective though, there is more access with the use of these systems. In addition, there are AI tools that candidates can use to optimize their application materials and help in highlighting how their experience and skillsets make them a great match for the position. I do not think AI is going to replace Finance or Accounting employees; I think it will replace employees that do not embrace the new opportunities that this industrial revolution is creating for our profession to be true business partners creating value.

Applicants need to change resumes so automated systems recognize them as a good match for their role. Candidates should customize their resume to include keywords that are in the job description. I also always look for action verbs on resumes to help stand-out – words like “achieved,” “analyzed” or “implemented” help to isolate achievements that help hiring managers distinguish between candidates with significant accomplishments versus those that are more focused on just performing functional responsibilities. A succinct professional summary that shows alignment with the role as the right next step in their career journey also resonates well with employers.

Resumes should also be concise and to the point on accomplishments. For my initial review, if it takes more than a minute for me to determine their skillsets and accomplishments, I move on. Make it easy for the employer to know that you are worthy of an interview by being clear and concise.

Many employers are now also using skills-based assessments including simulations to assess a candidate’s skillsets. There is much more focus on “proving” that you have the requisite skillsets than there had been in the past. Candidates should ensure that competencies represented on their resumes match the requirements of the position.

Lastly, if you do not get the position, learn from the experience, and keep moving forward. The future is bright in the Finance world and if you are dedicated to being a part of our exciting profession, embracing change and “moving with the cheese” by developing new skillsets are fundamental to your success!.

According to the most recent report from the Bureau of Labor Statistics, there are 254,030 personal financial advisors and these advisors serve over onethird of Americans. Financial advisors can support and guide their clients in some unexpected yet important ways. A recent article in Financial Advisor magazine highlighted some ways in which financial advisors remove financial pressures for people, which in turn, enriches their lives. These include:

1) Helping people alleviate marital strife due to finances

2) Helping reduce stress with strategic financial planning

3) Helping reduce workplace distraction so folks can focus on their jobs, not on managing their finances

4) Helping people identify opportunities to give charitable donations

An Alarming Trend

If you believe that financial advisors provide what America needs, then the pace of advisors retiring from the industry becomes truly concerning. According to Cerulli, an industry think tank and research firm, 37% of financial advisors managing $10.4 trillion assets will succeed out of the industry over the next 10 years and the total headcount of advisors will begin declining in 2023.

This trend could lead to a meaningful shortage in advice and services provided to Americans by financial advisors. This concern needs to be addressed on two fronts; build more capacity within the business and provide a smooth transition of client relationships from one generation of advisor to the next.

Building More Capacity

Capacity can be built with five strategies.

1) Good human capital planning and execution: Getting the right staff in the right positions with the right skills can leverage the reduction of advisors so each can serve more clients. However, with an overall labor shortage, it may be difficult to add staff. This makes carefully organizing and training staff even more critical.

2) Leveraging outside resources: For critical functions such as asset management, financial planning and marketing will help build capacity without the need to add more staff or advisors. There are several service providers in the industry that can be leveraged for a fee.

3) Streamlining service offerings: This can go a long way to build capacity. It starts by segmenting clients into three or four service groups. Many advisors go this far but fail to take the next step – designing and implementing a differentiated service offering for each segment. Too often the second-tier client group receives nearly the same service level as the top-tier group, missing an opportunity to build efficiency and add capacity while still delivering value to the second-tier group.

4) Workflows can help coordinate the activities of the staff: The most critical step in any workflow is the hand off from one step to the next or from one staff member to the next. At least three core business processes should be supported by workflows: client onboarding, client service meetings, and client requests services.

"America needs what financial advisors provide but with the increased pace of succession, efforts to improve capacity and smooth the transition of clients from one generation of advisor to the next are needed. Workflow and automation are some of the best solutions to a potential challenge for the investment advisor industry."

5) Automation, particularly of the workflows, could increase capacity: Often, the client relationship management (CRM) system is where workflow automation is housed. Using centralized files and automated notices to staff members can decrease the risk of handoffs and accelerate service delivery.

Provide a Smooth Transition of Client Relationships from One Generation of Advisor to the Next

This is how Live Oak Bank serves this industry. We provide resources and content to financial advisors on how to:

1) Prepare for succession

2) Maximize the value of a business

3) Find the best buyer

4) Become an attractive buyer

5) Source sellers

6) Structure a deal that benefits both buyer and seller

7) Manage the risk of transition

8) Manage the change for buyers, sellers, and staff

In addition, we provide financing for these transitions. We leverage automated workflows to market, originate, underwrite and close loans.

Through our technology-supported workflows, we have smooth transitions from one phase of loan processing to the next. Also, we can diagnose process inefficiencies and create solutions. Finally, we can remove some of the workload from the staff by providing cost savings to the bank and accelerating our time to close.

Summary

America needs what financial advisors provide but with the increased pace of succession, efforts to improve capacity and smooth the transition of clients from one generation of advisor to the next are needed. Workflow and automation are some of the best solutions to a potential challenge for the investment advisor industry.

While a US recession may prove to be insignificant or likely avoided entirely, the geopolitical outlook inspires caution, and companies engaged in global trade would do well to take a closer look at their financial supply chains to ensure they’re well-equipped to deal with the impact of growing trade tensions.

The majority of economists believe that the US will avoid a recession. Though there are signs of better-than-expected GDP growth, a surprisingly strong job market, and a healthy level of consumer spending, the economy is still reeling from the consequences of successive interest rate hikes and stick-high inflation.

Against a backdrop of global macroeconomic uncertainty, especially considering geopolitical tensions and the possibility of material shifts in trade policies with an unprecedented number of elections this year including US, the outlook presents a worrying scenario for companies.  Corporations face the challenge of higher working capital and greater risk mitigation needs, while simultaneously striving to strengthen their supply chains to unprecedented levels of resilience.

While a 2024 downturn is unlike. There is consensus that the supply chains are shifting, and planning and preparation will be key in establishing a more resilient and diversified supplier base to navigate any ‘known unknowns.’

The good news is that companies today have more time to do so than in prior years of crisis, such as in 2008 when the events were fast and tumultuous, surprising many companies and leading to a rushed implementation of strategies and solutions to mitigate the impact.

Given the volatile situation today and lessons learned during the financial crisis and pandemic era, it is prudent that companies act now to gear up for the impact of a period of disruption on their supply chains. Regardless of whether or not we enter a recession, there is a consensus that credit markets will continue to tighten, which is particularly concerning for small and medium-sized enterprises (SMEs), and in turn the supply chains to which they provide vital inputs.

Trade Finance Matters

During the 2008 financial crisis, large investment-grade companies came to the aid of their suppliers by issuing letters of credit, providing down payments on purchase orders, and extending various other kinds of working capital support to sustain their global supply networks.

Although some of these measures were far from ideal from a treasury management perspective, they helped to accelerate the importance and implementation of trade finance solutions. According to the International Monetary Fund, the share of world trade supported by bank-intermediated trade finance increased during the 2008 downturn.

As has been proven time and time again, in times of crisis, trade finance emerges as the lifeblood of international trade. It’s a countercyclical product with a range of solutions, such as supply chain finance, which can transfer credit risk from smaller businesses to larger, well-established companies, helping to shore up resilience right across the supply chain ecosystem.

"Given the volatile situation today and lessons learned during the financial crisis and pandemic era, it is prudent that companies act now to gear up for the impact of a period of disruption on their supply chains."

Where supply networks need to be reconfigured and new suppliers introduced, trade and supply chain finance instruments can help companies manage the increased risks of less established relationships.

Lenny Floria, a senior treasury manager at Nokia USA, shares that Nokia USA’s trade finance banking relationships were key in supporting the company’s working capital metrics during the financial crisis.

To boost the resilience of supply chains, large buyer companies can implement or expand supply chain finance programs to improve the availability and cost of funding throughout their networks and ensure the stability of strategic suppliers. Likewise, suppliers–often SMEs–can engage with their large buyers about the prospects of joining an existing supply chain finance program, or leveraging alternative funding options, such as receivables products.

Working proactively with trade finance specialists, treasury teams within companies of all sizes can identify the appropriate financing tools to enable them to withstand the current economic scenario and ensure the agility and sustainability of their supply chains. 

Given that economic uncertainty and higher financing costs are projected to continue, now is the time for companies to be reassessing their supply chains and their trade finance lines, and making sure that they have strong, reputable trade finance banks by their side. A proactive approach will go a long way to preventing undesirable working capital issues and emerging well-equipped to scale during expansionary periods.

While some businesses already have a financing and liquidity plan in place for weathering the storm, those that do not tend to not have taken any pre-emptive measures for bolstering their supply chains. For example, for several US companies engaging in trade with the Middle East, Africa, and Asia, solutions often fall short in terms of their support to suppliers in those dynamic markets.

ESG Objectives

As companies prepare to navigate forthcoming challenges and position themselves for success, their goals are also turning toward achieving important sustainability-related objectives within their supply chains. For large corporates, this shift could include rewarding suppliers based on environmental, social, and governance (ESG) criteria.

For many years, Standard Chartered has been working with companies to develop supply chain programs that provide tangible benefits to those who deliver on their ESG commitments.

The Bank’s enhanced partnership with US clothing company PVH Corp on a sustainability-linked supplier finance program is a recent example of a solution that is helping to drive suppliers’ environmental and social ambitions across the supply network.

Under the facility, suppliers to PVH Corp will get access to discounted financing if their day-to-day operations meet performance standards linked to environmental targets and a series of social elements, including a healthy and safe working environment, as well as employment issues, such as eradicating forced labor, child labor, harassment, and abuse.

As is demonstrated in this facility, and across the spectrum of the Bank’s suite of solutions, trade finance is a powerful tool that can be used to engage and incentivize companies across supply chains. It can be harnessed not only to offer working capital improvements but also to foster sustainable practices.

With careful planning, suitable financial instruments, and the right partners, companies can ensure they’re doing everything in their power to mitigate potential risks and emerge stronger in the face of economic uncertainty.

From Academia To AI In Investment Management

My professional journey includes paths I could never have anticipated. Growing up, I saw myself in academia and after earning a PhD in Astrophysics from the University of Chicago, I conducted research and taught at Princeton University. It was during this time that my career took an unexpected turn. I was offered a role in finance, despite having no formal background in the field. Taking that leap into the unknown marked the start of an exciting new chapter.

After delving into quantitative finance during my tenure as a “Strat” VP at Goldman Sachs, I took on a leadership role in the startup world as the Head of Data Science for a SaaS product. Then, I transitioned to the buyside and joined BlackRock as a director in their AI Labs. Machine learning and other AI methodologies became integral parts of the approaches my team employed there.

A couple of years ago, I joined T. Rowe Price, an active asset management firm, as the Head of Investments Data Science. Recently, I assumed the role of Head of AI and Investments Data Science.

The Impact Of Gen-AI On Investments And Challenges In Strategy Selection

The solutions we can develop with Gen-AI span the full spectrum from automation to differentiating intelligence. The investment industry, in particular, stands to benefit from automating routine processes and enhancing decision-making with advanced intelligence. Large language models, in particular, enable faster, more effective consumption of content—critical for the research phase of investments. These capabilities enhance the speed, efficiency and overall performance of investment workflows, including portfolio management.

However, it is important to recognize that many of the capabilities Gen-AI brings to the forefront are not entirely new - what I refer to as the “old-new” includes techniques that existed before GenAI’s emergence, such as nonAI or non-Gen-AI (but still AI) approaches.

The best investment strategies are those that are both profitable and aligned with the investment philosophy of the organization. Thus, the primary challenges are establishing confidence in the strategy’s profitability and robustness and ensuring the strategy is adopted and effectively integrated within the organization.

Overcoming these challenges often involves marrying the organization’s existing expertise and culture with the potential of data science. This integration requires a thoughtful approach—focusing on augmentation rather than automation. By leveraging data science to enhance human judgment and expertise rather than replace them, it’s possible to foster trust and acceptance across the organization.

“The best investment strategies are those that are both profitable and aligned with the investment philosophy of the organization.”

Ultimately, the process of identifying and implementing successful investment strategies hinges on a combination of clear communication, cultural alignment and leveraging technology to complement traditional methods. Striking this balance ensures that new strategies both demonstrate their value and gain the buy-in needed to succeed.

Key Skills And The Future Of AI In Investment Management

I am deeply grateful for the many opportunities I’ve had to grow and develop key skills throughout my career. Some of the most valuable lessons I’ve learned include cultivating empathy, embracing agility in research, being adaptable and balancing business pragmatism with perfection.

I also never underestimate the importance of a strong risk management strategy. While identifying new opportunities for growth and revenue can be both exciting and rewarding, the priority should always be to safeguard the assets and value already in hand.

The relationship between intelligent technologies and investments is going to deepen significantly in the coming years, with AI playing a pivotal role throughout the entire investment lifecycle—from research to portfolio optimization and risk management. Furthermore, I foresee intelligent technologies driving greater personalization in investment strategies, enabling tailored solutions that align more closely with individual investor goals and preferences.

The exact trajectory of this relationship will depend on several key factors, including the evolution of the legal and regulatory environment and the ability of companies to distill value. Success will hinge on how well firms can differentiate between genuine opportunities and market hype, focusing on extracting meaningful insights and value from these technologies rather than merely following what others do.

Mentoring, Talent Development And Advice For Aspiring Professionals

I focus on fostering an environment that encourages curiosity, continuous learning and collaboration. I make a conscious effort to provide team members with opportunities to take ownership of impactful projects, empowering them to grow both technically and professionally. Constructive feedback, tailored guidance and regular one-on-one conversations are essential in this process. I challenge my team to think critically while offering support as they navigate their development journey.

Aspiring professionals looking to break into investment management and AI should develop a multidisciplinary mindset. In addition, whether working in finance or AI, it is essential to have a thorough understanding of the methodologies and tools employed. In the case of AI, remember that it is not merely engineering—stitching together pieces of code is insufficient, particularly in an era where generative AI tools have democratized coding. Finally, it is necessary to cultivate adaptability and a growth mindset as success in these industries requires staying ahead of the curve and staying ahead requires a commitment to lifelong learning, embracing new tools and technologies, and a willingness to tackle challenges outside your comfort zone.

Responsibilities as VP, Procurement and Vendor Risk

As Vice President of Procurement and Vendor Risk, my role centers on balancing two critical objectives: enabling business growth through strategic sourcing while safeguarding the organization against third-party risks. I oversee end-toend procurement operations, vendor governance and risk management frameworks that ensure compliance, resilience and value creation.

My key responsibilities include negotiating contracts, implementing risk-based vendor segmentation and aligning procurement strategies with enterprise risk tolerance. My focus extends beyond cost optimization. I prioritize building collaborative frameworks that integrate risk awareness into every stage of the vendor lifecycle. Implementation of this strategy is intentional and includes working closely with legal, compliance, information security and business units to ensure that procurement decisions support both operational efficiency and regulatory obligations.

Risks Encountered in Third-Party Networks

Traditional frameworks often emphasize financial stability and regulatory compliance, but in today’s environment, hidden risks also exist in areas such as fourth-party and Nth party dependencies, sharing data and operational resilience gaps.

For example, a vendor may appear robust, but if they rely on a niche subcontractor for critical services, that dependency becomes vulnerability. Similarly, data privacy risks often arise from unclear data-sharing practices across extended networks. Another non-obvious risk is culturally misaligned vendors whose governance or ethical standards differ significantly from the institutions that can create reputational exposure. These risks require deeper due diligence and continuous monitoring beyond the initial onboarding phase.

Digital Transformation and Reassessing Risks

Traditional periodic assessments are no longer sufficient; institutions are moving toward continuous risk monitoring and dynamic risk rating models. Digital transformation introduces new attack surfaces, cybersecurity, data sovereignty and regulatory compliance across multiple dimensions of risk areas. The focus has shifted from static questionnaires to ongoing performance and resilience metrics, ensuring that vendors can withstand disruptions and maintain compliance in a fast-evolving regulatory landscape.

“In an era of rapid innovation and heightened regulatory scrutiny, breaking silos between procurement, vendor risk oversight and stakeholders is no longer optional, it is strategic and imperative.”

However, one needs to be cautious: automation can create blind spots if governance frameworks do not keep pace. Over-reliance on digital tools without human oversight can lead to misinterpretation of risk signals or compliance gaps. The focus must remain on balanced integration of technology and judgment.

Predictive Technology for Vendor Risk Assessment

Tools that track and monitor areas such as financial health indicators, cyber threat intelligence and Environmental Social Governance (ESG) offer powerful insights, while machine learning (ML) algorithms can detect anomalies in vendor behavior, such as sudden changes in payment patterns or negative sentiment in public data sources. Natural language processing (NLP) is increasingly used to scan regulatory filings and news feeds for early warning signs and graph analytics helps map complex vendor ecosystems to reveal hidden dependencies and concentration risks.

However, these technologies carry risks. Yet these technologies carry risks. Over-reliance on AI can introduce bias and create false confidence if outputs are not validated. Regulators require transparency, model validation and human oversight. Large datasets used by AI, ML and NLP can inadvertently expose proprietary or sensitive information, raising privacy and compliance concerns. Institutions must enforce strict data handling, encryption and governance to prevent leaks. Clear contract language around data usage, confidentiality and AI-driven processes is essential to mitigate these risks and ensure accountability. When applied responsibly, these tools enable proactive risk management without compromising security or ethics.

Advice for Managing Vendor Oversight

My advice is simple, embed risk thinking into procurement decisions from the start, not as an afterthought. Creating shared accountability between procurement, risk teams and the stakeholders through integrated governance models and aligned KPIs.

Start with small, actionable steps such as joint vendor onboarding checklists or regular risk-procurement review meetings. These practices foster collaboration, reduce friction and ensure that strategic sourcing decisions are informed by a holistic view of risk. Ultimately, vendor oversight should not be perceived as a compliance exercise, but as an effective strategy for resilience, competitive advantage and partnership.

In an era of rapid innovation and heightened regulatory scrutiny, breaking silos between procurement, vendor risk oversight and stakeholders is no longer optional, it is strategic and imperative. By leveraging emerging technologies, predictive analytics and collaborative frameworks, financial institutions can transform their stance from a defensive posture into a proactive driver of business value.

Gilbert Asamoah is finance and accounting professional with nearly three decades of experience. His interest includes finance and risk teams’ value-added contributions to business strategy. Currently a doctoral candidate at Franklin University, he is researching financial risk management competencies. Gilbert presently serves as Credit Relationship Manager at NiSource Inc.

What is effective financial risk management?

Asking questions is a good thing even if we do not have a perfect answer. For people in financial risk management roles, stopping to ask ourselves “What is effective financial risk management?”  is a pertinent question because it forces us to ponder if we are just carrying out mundane tasks or contributing to the strategic success of the organizations we serve. In the first part of this two-part article series, we established the functional scope of financial risk management and attempted to describe what effective financial risk management looks like, especially as seen as part of the broader domain of risk management.  In this final article we conclude by elaborating on the key essential ingredient for effectiveness which is to start with the first step of understanding the risk context, scope and criteria.

Effective Financial Risk Management Starts with the First Step

The first step in the risk management process is to set the risk context, scope and criteria as the underlying framework for all activities. If that step is ignored, it does not matter how well the other steps in the process are conducted. At this initial step, the objectives of the risk management program should be set in harmony with the broader organizational strategic goals. The scope, boundaries and criteria for all risk management activity must be framed to capture key elements like the risk appetite, governance structure, business strategy and its implementation. If practitioners of financial risk management only develop expertise in the technical aspects of their day-to-day routines, including using the latest technologies to bring efficiencies for identifying, modeling, analyzing, evaluating and mitigating risks, but those activities do not tie into the overall business strategy, objectives and governance infrastructure of the organization, the function can easily be diluted into mere accomplishments of tasks that do not aggregate to add value to any of the strategic goals of the enterprise.

"Effective financial risk management begins with understanding the risk context, scope and criteria, ensuring that activities align with organizational purpose and strategic objectives."

Risk Management is not a One Direction Linear Path

Another caution is not to see the financial risk management process as a linear path down the list of ISO process steps. The steps are only isolated and labeled as such for study purposes, but in practice, they overlap each other in an iterative manner. Even the first step of understanding the risk context, scope and criteria is not a one-time but an ongoing exercise that intersperses with the subsequent steps in the process. A financial risk manager’s tasks often call for going back to the beginning to conduct the risk context-scope-criteria exercise as many times as necessary with applicable stakeholders. The personnel involved in the various stages of the process must not live in silos but collaborate to ensure program objectives are met.

In Conclusion

Practitioners involved with financial risk management necessarily need to have technical expertise and use the most efficient approaches to prevent or minimize financial loss. However, this paper emphasizes that technical expertise in the financial domain is not enough to be an effective financial risk management practitioner. Practitioners in any of the domain functions of financial risk management must not lose sight of the fact that they are primarily engaged in risk management, financial risk being the focus of their expertise. Therefore, the rigorous, systematic and yet iterative nature of the risk management process as proposed by the ISO and other standard-setting organizations like the Committee of Sponsoring Organizations of the Treadway Commission (COSO) must be brought to bear on managing financial risks. This process begins with understanding the risk context, scope and criteria, a step that must be stretched as far as possible throughout the spectrum of activities in the financial risk management function. That is the way to ensure that financial risk management activities are, in reality, meeting organizational purpose and objectives, which is to say, being effective.  After all, what would be the point of solving a complex algorithm, obtaining the correct answer for that algorithm, only to discover later that the correct answer adds no value to the enterprise because it does not address the problem the organization is trying to solve?

In today's ever-changing HR landscape, retirement planning is crucial in ensuring employees' long-term financial security. This article aims to shed light on the multifaceted nature of retirement planning in light of remote work considerations, generational differences, and the evolving employee benefits landscape.

The Evolution of Retirement Planning:

Retirement planning has evolved significantly over the years. Guidelines such as the Employee Retirement Income Security Act (ERISA) have been instrumental in safeguarding employees' benefits and ensuring financial well-being beyond their working years. Today, retirement planning goes beyond traditional pensions, with options like 401(k) plans and individual retirement accounts (IRAs) providing employees greater control over their financial futures. Voluntary retirement plans have emerged as powerful tools for employees to save for retirement by offering flexibility, potential tax advantages, and employer contributions.

Plan design considerations in this era are not sufficient to generate behavior anymore. For example, the rise of remote work presents new considerations for retirement planning. While remote work offers flexibility and reduced commuting costs, it poses challenges, such as limited access to employer-sponsored retirement education. Another pillar is workforce diversity; different generations have unique perspectives and preferences when it comes to retirement planning. Tailoring retirement planning approaches to cater to the needs of Baby Boomers, Generation X, Millennials, and Gen Z (and getting ready for Gen Alfa) can foster engagement and participation/attraction. By offering personalized approaches, educational resources, and user-friendly retirement planning tools, HR professionals can empower employees to make informed decisions about their retirement goals. It is worth to also call for action to all HR professionals since we play a pivotal role in bridging any gaps. Certainly, it is a complex topic. However, many proven methods are leverage (i.e., providing virtual resources, facilitating retirement workshops, and encouraging employees to engage with retirement planning tools and advisors).

“Today, retirement planning goes beyond traditional pensions, with options like 401(k) plans and individual retirement accounts (IRAs) providing employees greater control over their financial futures”

Adapting to the Changing Employee Benefits Landscape:

Employee benefits have evolved beyond retirement plans. Organizations now recognize the importance of a holistic approach to employee well-being. In addition to retirement plans, Organizations offer a wide range of benefits that contribute to employees' financial security and overall quality of life. Comprehensive well-being programs encompassing physical, mental, and financial aspects have also emerged. These programs go beyond traditional healthcare benefits and provide resources and support to enhance employees' well-being. For instance, financial wellness programs offer educational resources, tools, etc., that empower employees to make informed decisions about their retirement savings, budgeting, and investment strategies. By equipping employees with the knowledge and tools necessary to navigate the complexities of retirement planning, organizations aim to empower them to take proactive steps toward building a secure financial future. Furthermore, technological advancements have revolutionized how employees engage with their retirement plans. Self-service

retirement planning tools, accessible through online portals and mobile applications, allow employees to monitor their retirement savings, adjust their contributions, and access educational materials at their convenience. These tools enhance employees' financial literacy and provide a sense of ownership and control over their retirement planning journey. The changing benefits landscape and empowering employees are vital in helping employees plan for retirement more effectively. Empowering employees with flexible work options, robust well-being programs, and user-friendly technology fosters a culture of financial literacy and long-term planning, ensuring that employees have the resources and support to make informed decisions about their retirement goals.

As an HR professional with a diverse background spanning various HR roles, I have witnessed the ever-changing landscape of retirement planning and the speed of change it’s been experiencing. Our collective responsibility as HR professionals is to shape the next phase and empower employees to take control of their financial futures. By understanding the evolving nature of retirement planning and embracing technological advancements, we can create a culture of financial well-being that caters to the diverse needs of our workforce. Together, let's ensure that every individual has the opportunity to achieve their retirement dreams and enjoy the fruits of their labor.

It’s interesting that I get this question a lot and it’s usually under the context of whether it’s better to develop a three-year or five-year strategic plan. To me, it really doesn’t matter what time horizon a company chooses as it relates to the shelf life of a strategic plan because the answer is the same: zero-it has no shelf life!

Strategic plans need to be living, breathing documents to be effective and should never be literally or proverbially placed on a shelf. To help “make it real,” there are three areas of focus that help ensure actionable strategic plans: strategic and operational planning alignment, transparent accountability, and rigorous execution.

Alignment of Strategic & Operational Planning

The overall planning cycle includes both strategic and operational planning that should be aligned to increase efficiency and improve results. For organizations on a calendar year-end, I like to kick-off the strategic plan update in April, after Q1 results are finalized, and complete the Strategy in the July timeframe. Notice I used the term “update” versus “create”. Unless the company is new or recently merged, once the plan is created, an annual update that extends out one year should suffice instead of creating a new plan from scratch. For example, in 2021, a three- year strategic plan from 2021- 2023 should be updated to cover 2022- 2024. A review of mission, vision and core values should still be performed with a SWOT Analysis (strengths, weaknesses, opportunities, threats) but in an abbreviated manner, versus the extended workshops necessary when developing a new plan.

After the strategic plan update is completed in the Summer, it can be leveraged for budget development in the fall for the subsequent year. In the example above, the 2022-2024 strategic plan completed in the summer of 2021 should be the framework for the 2022 budget developed, starting in the fall. In this way, strategic planning is aligned with operational planning so the work included in the strategic sessions f lows nicely into the efforts to produce the budget commitments for the subsequent year. A few words of caution here though: don’t let the strategic plan development become a forecasting exercise–it’s a slippery slope that defeats the purpose. Be sure that the focus is on strategy development and let that drive the results, not vice versa.

Transparent Accountability

I’ve seen many companies with aspirational plans supported by lengthy strategic documents and slides that are very impressive on the surface, but ultimately fail to produce the desired results. In strategic plans that I inherited, the average percentage of accomplished initiatives at the end of the planning period was less than 50 percent− a failing grade! It’s great to be aspirational, but the strategic objectives need to be achievable. Transparent accountability is the key to ensuring that the plans are not just PowerPoint fantasy sitting in a binder to die on the shelf.

“Strategic objectives should be supported by goals and specific strategic initiatives that align with the vision of the organization and define ownership at the most granular level possible.”

Strategic objectives should be supported by goals and specific strategic initiatives that align with the vision of the organization and define ownership at the most granular level possible. I like to utilize a RACI framework where Responsibility and Accountability are assigned for all aspects of an initiative along with determination of which parties need to be Consulted and Informed. This helps to ensure that accountability is clearly defined and provides transparency around the time and efforts needed by teammates to make the accomplishment of each strategic initiative a reality. Once the RACI is defined for all strategic initiatives, make sure their achievement is incorporated into each employee’s performance objectives for the year. 

Once Upon completion of the strategic plan, it’s important to roll it out across the entire organization. Every employee should know how what they do on a daily basis aligns with the strategic objectives of the company. If you build the strategy with input from a diverse set of employees throughout the company and communicate it back effectively, the benefits from joint ownership and transparent accountability greatly inf luence your ability to achieve the desired results. Strategy updates then become part of the company’s DNA in embracing and adapting to changes in a collaborative manner.

Rigorous Execution –Make it Real!

Once the strategic plan is aligned, documented, and communicated with transparent accountability, it’s all about execution. In this case, two out of three is bad as many well-intentioned, documented plans fail due to excuses and rationalizations around execution. To avoid this, I have always relied on the saying, “what gets measured, gets done”.

Strategic initiative scorecards are a great tool to report progress on each initiative. Don’t try and boil the ocean; just focus on the key “metrics that matter” related to the success of each strategic initiative. I recommend monthly, more granular scorecards in business review meetings with senior management and executive summary level quarterly progress reports to the Board of Directors.

Project management also plays a critical role in making it real and ensuring execution with excellence. A strong Enterprise Project Management Office (EPMO) helps to ensure strategic initiatives have realistic deadlines due to resource capacity, resolves potential conf licts between competing projects, and proactively raises issues for timely resolution. Be careful not to have employees who work in the business line also manage the strategic initiatives. Many strategic projects fail because the line personnel are too busy to do both or not qualified to professionally manage multiple stakeholders across the organization. A separate, small EPMO team comprised of certified Project Management Professionals (PMP) will help ensure the success of your plan.

So let’s keep those strategies off the shelf and make them real, because as we know all too well - hope is not a strategy!

As the ripple effects of the collapse of offshore crypto exchange FTX continue to unfold, there will be many lessons to be learned by those engaged with this nascent asset class in any capacity – retail investors, market makers and hedge funds, builders of decentralized blockchain protocols, traditional institutions just beginning to explore the space, and, of course, regulators in multiple jurisdictions. Already the sharp contrast in accountability between onshore and offshore centralized exchanges has come into focus, while questions are being raised surrounding the due diligence process and ongoing oversight by venture capital investors in the space.

Just as the Enron scandal and the Global Financial Crisis of 2008 taught us numerous lessons, as more details come to light and we begin to sort through the wreckage of FTX, we can assume there is plenty to be learned. The events leading to the fall of FTX and the farreaching impact of the bankruptcy of what was the third-largest centralized crypto exchange will undoubtedly have a meaningful impact on the future path of crypto. But there is one lesson that was immediately clear even as the first stories broke about the situation at FTX: proper custody of digital assets is paramount, and many in the market had lost sight of this first principle of crypto.

"Proper custody of digital assets is paramount, and many in the market had lost sight of this first principle of crypto."

All digital assets are bearer instruments that are housed on the internet. In terms of custody, investors have three choices: they can self-custody using their own hardware or software crypto ‘wallet’ with ‘keys’, they can use an institutional custody solution that relies on a third party to securely store the wallets or keys for accessing the wallets, or they can de-facto custody with a centralized exchange when they are trading or holding their digital assets in an exchange’s commingled custodial wallet. Frequently, customers will decide to custody a portion of their assets on an exchange so they can trade more easily – enjoying centralized order books, deeper liquidity, and less cumbersome execution. In the vast majority of cases, this doesn’t result in adverse outcomes and is largely uneventful from a custody perspective. However, relinquishing custody of your digital assets by custodying them on-exchange is a risk. While the details of exactly what transpired in the case of FTX are still emerging, we do know that the movement of customer assets by an exchange without customers’ permission or knowledge is only possible when the customer is using the commingled wallet custodial service of that exchange. Market participants understand this and are beginning to act accordingly. In the case of retail investors, we are seeing, and are likely to continue to see, a move away from on-exchange custody to self-custody.  Indeed, producers of retail self-custody hardware products have seen a record growth in sales over recent weeks.

At the institutional level, we are likely to see a move away from the convenience offered by the ‘fully integrated’ tech stack, and the focus shifting towards best practice in the institutional approach to digital assets operations – a disaggregated institutional custody solution. In traditional financial assets and markets, custody is considered a middle- or back-office function. In crypto, custody is, and should be treated as, a front- office function.

While it’s too early to say what the regulatory response will be to the events surrounding the collapse of FTX, I am optimistic that we will see a robust regulatory framework that facilitates the growth of this emerging market. As most would understand, the accuracy of any counterparty risk assessment is wholly dependent on the quality of due diligence users are able to conduct. For offshore exchanges, this is based on voluntary disclosures, and despite a move towards radical transparency where exchanges publish ‘proof of reserves’ by allowing look-through to their reserve wallets, this requires trust. For onshore exchanges, we may see regulators take on the role of verifier, examining reserves and using enforcement mechanisms to protect against the misuse of client assets held on exchange. This directly translates to ‘trust but verify’. If done properly, it should equate to a similar degree of protection as participants in traditional financial markets enjoy.

With deep expertise at the intersection of law, compliance and fiduciary operations, Lisa Levine brings unmatched precision to risk management in the financial services sector. As Executive Director and Director of Fiduciary Oversight at Wells Fargo, she leads comprehensive programs safeguarding trust services through rigorous compliance, thoughtful legal navigation and unwavering ethical standards.

Making Complexity Work for the Institution

Fiduciary compliance has always been a high-stakes endeavor—but today, it’s also a key test of institutional resilience. With shifting regulations, sophisticated client demands and the ever-present risk of reputational fallout, organizations can’t afford to treat it as a checkbox exercise. Lisa Levine understands that better than most.

Armed with an LL.M. in Taxation from NYU and decades of experience at firms like Goldman Sachs, Bessemer Trust and Merrill Lynch, Levine doesn’t just navigate complexity—she makes it functional. Her work, whether in trust oversight, AML compliance or collective fund governance, is marked by quiet rigor: efficient, methodical and rooted in real-world constraints.

She’s not the kind of leader who chases headlines. Instead, she builds systems that hold up over time—structures that regulators respect, colleagues rely on and clients never have to think twice about.

From Legal Expertise to Operational Precision

What makes Levine’s work stand out isn’t just her legal background— it’s how seamlessly she moves between theory and execution. She can walk into a policy discussion, decode regulatory language and translate it into daily procedures without skipping a beat. And when she’s managing an internal audit or interfacing with regulators, it’s not about scrambling to fix gaps—it’s about showing the strength of what’s already in place.

“She doesn’t overengineer compliance, but she never leaves it vulnerable. Few get this balance right and it’s earned her trust inside some of the most tightly regulated corners of the financial world”

That’s where her judgment shows. She doesn’t overengineer compliance, but she never leaves it vulnerable. Few get this balance right and it’s earned her trust inside some of the most tightly regulated corners of the financial world.

Reframing Risk as a Strategic Lever

At Wells Fargo Trust Services, Levine’s focus is clear: not just managing risk but staying ahead of it. She’s helped shape oversight systems that adapt to the speed of regulation, scaling without sacrificing precision. In doing so, she’s reframed how institutions think about fiduciary governance—not as an afterthought but as a foundation for long-term credibility and business health.

Where others react, she builds infrastructure. Where some view compliance as a constraint, she sees a chance to lead differently—to earn trust in an increasingly skeptical world.

In a sector where missteps make headlines, Lisa Levine’s work rarely does. And that’s the point. Her impact shows up in the absence of crisis, in the quiet confidence of a well-managed portfolio and in the kind of internal discipline that never needs to be rescued.