Frequently Answered Questions
Board and Executive Questions
Can management provide a reliable enterprise view rather than fragmented answers?
Can the bank act quickly enough when circumstances change?
How can events outside the bank become material risks inside the bank?
How does interconnectedness change the way risk can spread through a bank?
How should Boards think about risks the institution may not yet be seeing?
If a major client or counterparty fails, can the bank understand its total exposure quickly?
If geopolitical or sanctions risk changes suddenly, can the bank identify what is affected?
What are regulators concerned about in a major global bank?
What are the questions that matter most at Board level?
What can happen when a bank gets its controls wrong?
What do regulators expect of a G-SIB?
What role does CLM play in helping the bank understand and respond to risk?
What should a Board expect the bank to be able to know and do when circumstances change?
Why are G-SIBs held to a higher standard?
Why does CLM matter to the Board?
Understanding CLM
How does CLM work?
Is CLM more than onboarding and KYC?
What is Client Lifecycle Management (CLM)
Client Entity and Relationship Structure
Why do relationships and networks beyond the client matter?
Why is a client not necessarily the same as a legal entity?
How can geographical or economic disruption reach a financial institution through its clients?
What is a client relationship?
KYC, CDD, and Financial Crime Controls
Is KYC the same as CLM?
What is required for genuinely risk-based CLM??
What is the difference between CDD, KYC and CLM?
Why do regulatory approaches to CLM differ between jurisdictions?
Risk and Exposure
Are all CLM performance objectives equally negotiable?
How can geographical or economic disruption reach a financial institution through its clients?
How does CLM help a financial institution respond when risk changes?
What is Total Entity Exposure?
Why do relationships and networks beyond the client matter?
Why does CLM extend beyond the client relationship?
Operating Model and Governance
Does CLM need to be one central team?
Does every financial institution already have a CLM capability?
What makes CLM an enterprise capability?
Why might an organisation impose tighter CLM rules than regulation requires?
Performance and Improvement
Are KPIs the same as CLM Performance?
Can CLM be performing well in normal conditions but still be fragile?
How does management know when to intervene in CLM performance?
How should CLM problems be diagnosed?
How should tolerances be used to manage CLM performance?
What does good CLM performance actually mean?
What is the relationship between CLM capacity and productivity?
What happens when CLM demand increases but capacity does not?
What role do evidence and theory have in practical CLM improvement?
Why can CLM workload increase even when client volumes do not?
Why can improving one part of CLM create problems elsewhere?
Why do CLM performance objectives compete with each other?
Why do different stakeholders judge CLM performance differently?
Why is CLM performance difficult to improve?
Why should CLM be viewed as a system rather than a process?
Strategy and Future of CLM
How is CLM likely to change in the future?
What impact could AI and new technology have on CLM?
Why does CLM need to evolve for a more connected world?