In anticipation of Momentum 2024 in October, we’re shining the spotlight on many of the expert speakers joining us at the conference. This time, it’s our very own Carol Ann Northcott, Chief Risk Officer at Central 1. We took the opportunity to speak with Carol Ann to gain insights into the current risk environment and learn more about her participation at Momentum.

Carol Ann joined Central 1 in 2023, bringing extensive experience in risk management across several and varied specializations within the finance industry. Her vision and eagerness to learn position her as a leading figure in navigating the evolving risk landscape and addressing uncertainties.

Can you tell us a bit about your background and career in risk?

I’ve been in “risk” my whole career, although I didn’t always think of it that way. The first chunk of my career was spent at the Bank of Canada where I specialized in systemic risks to the financial system. This positioned me well when the Great Financial Crisis hit to be involved in developing the new international rules for banking and financial market infrastructures. In the next chunk of my career (as Chief Risk Officer at the Bank, Payments Canada, and now Central 1), I’ve focused on enterprise risk. While it is a different focus, it is fundamentally the same idea – understanding where risks could arise, how risk can flow, and how to mitigate the potential impacts. However you think about it, risk is just the uncertainty around future events and risk management is all about how you position yourself to manage through that uncertainty.

You’re participating in a fireside chat with Donna Achimov, Chief Compliance Officer at FINTRAC at Momentum 2024. In terms of risk, what can we expect from this conversation and why is this conversation important?

I’m hoping we can have a great conversation around the “uncertainty” we see coming at us and what that might mean for the risks we are going to have to manage in the future. Only by being forward-looking and creative can we hope to position ourselves well to manage risks. There are some very interesting innovations coming at us that have implications for fraud and Anti Money Laundering risks.

How do we innovate in terms of risk management and what kinds of conversations should we be having? What are some top of mind challenges we are seeing in banking right now?

When the world is evolving as quickly as it is, the past might not be a great predictor of the future. This means we must work hard at understanding future trends, how they might evolve, and what the different evolutions may mean for the risks to our business. Risk management must evolve to be more forward-looking and scenario oriented so we can position ourselves to better tackle new risks.

Central 1 ensures it has strong expertise when it comes to risk and compliance. Why is this fundamental work important?

It is central to all we do – pun intended.

Central 1 plays a key role in the credit union system, and the system depends on us for the continuous delivery of critical services such as payments and the provision of liquidity. We take that role very seriously and it requires a high degree of risk management, not just by those that have a “risk manager” title, but by everyone. When you have the right culture, everyone is responsible for managing risk – both mitigating harm and maximizing opportunity. When this happens, firms don’t just survive, they thrive.

Do you have any advice for young people who are seeking a career in risk management?

Whether it is a career in risk management, or any career, my advice to young people is the same.

• Be wildly curious – ask questions and pursue ideas and people with perspectives different than your own.
• Be passionate – figure out what fires your imagination and gives you energy.
• Finally, lean in and say “yes”. Someone you trust offers you a project you aren’t sure you are ready for? Say yes. An opportunity arises to help a colleague and learn something outside your job description? Say yes. Your boss comes looking for volunteers to contribute to a corporate-wide initiative? Say yes. Every time you lean in you learn something new about yourself, your colleagues, your organization and it supercharges your thinking and your career.

Uniting more than 400 credit union and financial industry leaders, Central 1 will host Momentum October 28-30 in Toronto. Join us to hear more from experts like Carol Ann and Donna, and gain insights on diverse topics shaping the financial industry.

Secure your space! Register now.