Use Microsoft Copilot to Draft Risk Policies

What This Does

Copilot in Microsoft Word drafts new risk policy sections or revises existing ones based on your instructions — so you can update a credit risk policy for a new regulation or add a new operational risk procedure in minutes rather than hours.

Before You Start

• You have Microsoft Word open (desktop or web at word.microsoft.com)
• You're signed in with a Microsoft 365 account that includes Copilot (Business or Enterprise plan)
• You have your existing policy document open, or you've started a new blank document

Steps

1. Find the Copilot feature

In Word, look for the Copilot icon in the right side panel — it looks like a small spark/star symbol. If you don't see it, go to Home in the ribbon and look for Copilot in the right section. Click it to open the Copilot panel on the right side of your screen.

2. Tell it what you need

In the Copilot chat panel, type your instruction. For drafting a new section, be specific:

• "Draft a new section on model risk management covering: model inventory requirements, validation frequency, and escalation process for model failures. Tone: formal policy language."
• "Revise the third-party risk section to reflect the requirement that all Tier 1 vendors must complete annual SOC 2 Type II assessments."

3. Review and insert the result

Copilot will generate text in the panel. Click Insert to place it in your document at the cursor position, or copy and paste it manually where you want it. Then edit for accuracy — review every sentence against the actual regulatory requirement or your organization's specific process.

Real Example

Scenario: A new OCC model risk management bulletin requires your community bank to document model performance monitoring procedures, which your current policy doesn't cover.

What you type: "Draft a policy section on model performance monitoring for a community bank's model risk management policy. Include: monitoring frequency by model tier, KPI examples, reporting requirements, and the escalation path when a model underperforms."

What you get: A 300–400 word policy section with structured subsections, ready to review and edit against the actual OCC guidance language.

Tips

• Open your existing policy document before starting — Copilot reads the document context and matches your existing policy formatting and terminology automatically
• Always verify specific regulatory citations and thresholds against the source — Copilot may confuse version numbers or effective dates
• Use Copilot to standardize language across multiple policy sections by asking it to "rewrite this section to match the formal tone and terminology used in [paste another section]"

Tool interfaces change — if a button has moved, look for similar AI/magic/smart options in the same menu area.