Risk Management in Payments with Guest Sean Carter
Wrestling Payments Podcast: Season 1 - Episode 11
Episode Summary
In this episode, Joe Casali sits down with Sean Carter, the top man at NEACH and NEACH Payments Group. They dive deep into the world of risk management in payments. Sean emphasizes the power of interpersonal skills and the value of curiosity in the industry.
The talk shifts to the intricate dance between Enterprise Risk Management (ERM) and Strategic Risk Management (SRM). Both play pivotal roles in shaping the future of payments. Sean shares insights on how these concepts intertwine and their impact on the broader payment landscape.
Tune in to grasp the nuances of risk management from an industry leader. It's a conversation packed with expertise and actionable insights.
Download Episode Transcript
Guest-at-a-Glance
💡 Name: Sean Carter
💡 What he does: President & CEO
💡 Company: NEACH
💡 Noteworthy: Sean Carter: Newly minted Accredited Payments Risk Professional (APRP).
💡 Where to find Sean: LinkedIn
Key Insights
⚡The Power of Imagination in Risk Management
Sean Carter emphasizes the importance of operations personnel in risk management. These individuals possess a wealth of institutional knowledge, allowing them to predict potential issues based on past experiences. Sean suggests that a combination of strong communication skills and the ability to envision various scenarios (imagination) can be invaluable. This imaginative foresight helps in anticipating challenges, especially those not immediately obvious.
⚡The Role of Interpersonal Skills in Operations
Sean highlights the significance of interpersonal skills in preventing blindsides in operations. Building good relationships across departments and consistently asking questions can prevent unexpected challenges. Being inquisitive and maintaining open channels of communication can preemptively address potential issues. Moreover, making others feel important can lead to more open sharing of information.
⚡Understanding Risk Appetite vs. Risk Tolerance
The distinction between an organization's risk appetite and risk tolerance is crucial. While risk appetite is the overall level of risk an organization is willing to accept, risk tolerance pertains to the degree of risk they're willing to take for a specific goal. Effective communication is essential to ensure everyone understands these concepts, aligning individual actions with the organization's broader risk strategy.
Episode Highlights
Introduction to the Podcast and Risk Management
Timestamp: [00:01:09]
Joe Casali introduces the podcast and the guest, Sean Carter. They set the stage for the episode's theme, which revolves around risk management in payments. Joe mentions his recent exposure to new risk management concepts, prompting Sean to share his insights.
"I do think it's gonna be an interesting conversation, and that's what it is. It is a conversation with teeing it up. We're hoping that the conversation will continue, whether it's in Members Corner, LinkedIn, or in some comments on the podcast themselves. We really want to hear what your thoughts are around this, and it is about risk management and payments."
The Challenge of Unforeseen Risks
Timestamp: [00:08:47]
Sean Carter dives into the challenges that arise when unforeseen risks emerge. He discusses a situation where an employee didn't follow the procedure, leading to a breakdown. The risk was known, but how it manifested was unexpected. This highlights the importance of understanding both known and unknown risks.
"And so what they didn't know was that an employee was gonna do that. It really wasn't taken into account, probably that this is something that could have happened. The risk itself was known, but how it was gonna represent itself was the unknown."
The Importance of Communication in Risk Management
Timestamp: [00:12:47]
Sean emphasizes the significance of effective communication in risk management. He talks about the dangers of information silos and the need for open conversations. Ensuring everyone is aligned with the organization's risk appetite and risk tolerance is crucial.
"So that's the same in kids and adults. Everybody goes with their own, 'Hey, here's my career path. Here's what I want to become at a financial institution. How does that fit into the overall success of the organization?"'
The Role of Interpersonal Skills in Operations
Timestamp: [00:23:39]
Sean highlights the value of interpersonal skills in operations. Building relationships across departments and being inquisitive can prevent blindsides. Making others feel important can lead to more open sharing of information, which is crucial for effective operations.
"I think that's just somebody that would have good relationships across the bank is probably not gonna get blindsided. The other thing could be just somebody that's always asking questions, 'Hey, what's going on with the IT people?"
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