Voice of the Industry

Why risk management is a fintech's best friend

Friday 5 May 2023 10:10 CET | Editor: Alin Popa | Voice of the industry

Are you balancing the voices of risk and reward or favouring reward over risk? If you want long-term success and financial sustainability for your fintech, David Tattam from Protecht has some ideas.


Fintechs need innovation, new ideas, and maximum recurring revenue growth on dollars invested. They, therefore, attract entrepreneurs, free thinkers, and ideas people. Their vision needs to be on outcomes and success. These are key to a fintech’s success. But there is one thing missing – risk management.

‘No’, I hear you say, ‘but risk management slows us down. Risk managers are the fun police, the business prevention unit, the stoppers!' If that’s your view, read on, because I love risk and I love risk management and yet I like to think I am none of the above. 

A number of years back, I took up the sport of hang gliding. Why? Because I love the reward of taking a physical risk – adrenalin, and not to mention the serenity of floating around at 10,000 feet. Hang gliding is an inherently very risky sport: the reward is great, but the inherent risk is very high. I wanted to take these risks for the reward, yet I did not want to die while doing it. Enter risk management and controls. I created a 44-point checklist that contained 44 key controls. I carried out my risk management and controls management before every single flight which took me around 20 minutes. During this time many of my fellow pilots were already flying – they had no time for this risk management stuff. Sadly, some of those people are no longer with us, but I am still here! 

The pursuit of rewards and outcomes is wonderful, as long as it is sustainable. The pursuit of reward without risk management is ‘boom/bust’. Our aim should be a sustainable reward. We need to take risks in fintechs – that is where reward and success come from – but we also want to be around in 10, 20, and 30 years.

Risk management and reward management should be best friends, not enemies. They are not mutually exclusive and should be considered equals from day one of your fintech. Perhaps if the voices of risk and reward were equally listened to, and invested in, by Silicon Valley Bank, they might still be around. 

So how do you ensure your risk management is an enabler of sustainable reward and invested in from day one? Ask five simple questions and see where your answers sit.

I may be called a ‘risk manager’ but I see myself as a ‘risk/reward manager’. You should not manage reward separate from risk or risk separate from reward – they are partners. I sometimes feel a good risk manager is a marriage guidance counsellor, where the partners are risk and reward. A sustainable marriage requires equal input by both partners and both being  listened to equally. 

Are you balancing the voices of risk and reward or favouring reward over risk? If you want long-term success and financial sustainability of your fintech:

  • Ensure risk management is being discussed and addressed on day 1 – it is not something to put off for another day.
  • Make sure risk management is discussed and prioritised as much as reward management.
  • Create a tone from the top and culture that risk management matters.
  • Promote the message that good risk management and good controls management will enable us to go higher, faster – safely and sustainably.

About David Tattam

David Tattam is the Chief Research & Content Officer and co-founder of the Protecht Group. David's vision is to redefine the way the world thinks about risk. Prior to Protecht, David was the Chief Risk Officer and Head of Operations for the Australian operations of two global banks. 




About Protecht

For over 20 years, Protecht has redefined the way people think about risk management with the most complete, cutting-edge, and cost-effective SaaS solutions. We help companies increase performance and achieve strategic objectives through better understanding, monitoring, and management of risk, resilience, and regulatory compliance.

To find out more about effectively managing risk and reward in your organisation, visit us at www.protechtgroup.com or email us at sales@protechtgroup.com 

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: risk management, fintech, de-risking, fraud management, SaaS
Categories: Fraud & Financial Crime
Companies: Protecht
Countries: World
This article is part of category

Fraud & Financial Crime


Discover all the Company news on Protecht and other articles related to Protecht in The Paypers News, Reports, and insights on the payments and fintech industry: