Operational risk at Zions Bancorporation

RMA Journal, The, Nov, 2002 by David Stone

Deepening and expanding customer relationships. Zions' vision of enterprise risk management as a tool to strengthen customer service was inspired by efforts at First Chicago over a decade ago. At that time, First Chicago successfully used operational measures to improve its performance, maintain its client base, and win new business. Zions has similar goals: to use its risk system to strengthen operations, and ensure consistent, excellent service for its customers. Deploying Zions' risk assessment system will further the company's efforts at delivering accurate, available, efficient, and uncorrupted service. Zions believes that an organization that consistently meets and exceeds customer expectations will be better positioned to expand and deepen those relationships and do so more profitably.

Conclusion

Many units throughout the company have been using risk assessment, key risk indicators, and loss data to better manage their businesses. Now, Zions is bringing them together in a new, standardized, Web-based approach. This risk assessment solution will play an important role in helping create an environment where risks are appropriately identified and assessed and where controls are steadily improved. It will help teams strengthen customer service levels and compete in the market. It will help Zions meet Basel AMA guidelines, which should enable the bank to maintain less capital for operational risk. It is also designed to support SarbanesOxley requirements. In the end, our customers and shareholders will tell us whether or not we have succeeded. Effectively serving their needs is our primary objective and the driving force behind Zions' risk management efforts.

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Stone can be contacted by e-mail at dstone@zionsbank.com

[c] 2002 by RMA. Stone is vice president of Risk Management at Zions Bancorporation and a member of RMA's Operational Risk Council. The author is grateful to Doyle Arnold, executive vice president and chief financial officer, Michael DeVico, executive vice president, Operations and Information Systems, and Gary Helme, executive vice president, Wealth Management, Zions Bancorporation, for their help in this article.