On June 2 and 8, Bank Governance Leadership Network (BGLN) participants joined two virtual meetings to continue discussions around the COVID-19 pandemic and implications for large bank operations, technology, and credit, conduct, and reputational risks. The key themes that emerged include:
· As digital transformation has accelerated, new risks have emerged
The COVID-19 crisis has forced banks and their customers to use digital tools and processes to compensate for branch, office, and call center closures. Participants discussed moving more quickly to the cloud and expanding the use of AI, the acceleration of internal processes, and the related cyber and operational risks they have accepted in the short term, and what may persist over the longer term.
· Persistent uncertainty continues to challenge forecasting
The unprecedented steps taken to control the pandemic, the delayed effects on some sectors, and the continuing uncertainty about global economic recovery forecasts compound the challenge for banks trying to model the impact on their customers and portfolios.
· Banking models and reputations will be tested
Participants discussed the risks for banks as government programs to support individuals and companies through the COVID-19 pandemic expire and the financial impact of the pandemic and economic shutdowns catch up with more customers.
Read the full ViewPoints here.
From April 14 to April 30, 2020, Tapestry Networks convened a series of virtual meetings with the audit committee chairs of more than 100 large US public companies, to discuss how boards and audit committees are responding to the COVID-19 pandemic. EY experts and senior leaders joined the audit chairs in these meetings.
Tapestry Networks published two earlier special editions of ViewPoints based upon similar meetings from March 24–April 11. This third special edition synthesizes discussions about two issues and offers questions for reflection.
Charting the path to a ‘new normal’ as employees return to work
Assessing supply and demand uncertainty as companies restart their businesses
Read the full ViewPoints here.
Private sector wants more — and better — cybersecurity cooperation with government
Morning Consult is a global technology company revolutionizing ways to collect, organize, and share survey research data to transform how decisions are made.
On March 9, 2020, Morning Consult published an Op-Ed written by Jonathan Day and Michael Mahoney of Tapestry Networks. The piece highlights the need for better coordination between the government and corporations on dealing with emerging and evolving cybersecurity threats.
In May 2019, Tapestry and members and liaisons of the multistakeholder Steering Committee (SC), which oversees the progress of the diagnostic quality assurance pilot, met to discuss the pilot’s results. Since its launch in 2016, the pilot has aimed to create a process to compare the performance of molecular diagnostic tests that are used for selection of targeted therapies, using a test case of a next generation sequencing (NGS) diagnostic for a specific targeted cancer treatment. Earlier this year, 18 volunteer laboratories returned data to the pilot’s technical implementation team at the College of American Pathologists, marking an end to the pilot testing phase. The data compared performance of laboratories’ validated tests with specifications set by an FDA-approved companion diagnostic (CDx).
During the May meeting, the CAP’s Scientific Technical Working Group (STWG) leadership presented a summary of the dataset and lessons learned from implementing the pilot. Collectively, the STWG representatives and SC discussed the results’ technical implications, and their meaning for various stakeholders and SC members’ organizations. Moving forward, SC members are committed to sharing outcomes later in 2019 through a peer-reviewed technical publication, a white paper, and, potentially, through other mediums. Read more here