The Challenge

A challenge for the for the Banks Risk, Compliance and Audit Professionals

  • In the banking and financial services industry, calculated risks have to be taken every day to run an organization, but most banks fail to monitor and manage risk effectively because they fail to implement systems to get a federated view of the risk. A cavalier and silo approach to risk-taking is a result of a poorly defined leadership and risk culture. It results in disaster, regulatory scrutiny, demise of organization and can potentially become a case study for future generations to come on how poor risk management leads to the demise of corporations.
  • Although a long-standing industry problem, many banking and financial institutions continue to struggle with improving their risk data aggregation, systems and reporting capabilities. Banking organizations are struggling to comply with cross border regulations such as Basel, CFPB, OCC, FDIC SEC and pressured due to lack of confidence in their ability to produce accurate risk and compliance data on demand.
  • In a typical bank, risk and compliance monitoring is primarily geared towards programmatic metrics such as: exam violations, policy & procedure management, MRAs, and training exceptions etc. They use multiple platforms and adopt a silo approach further cementing the silo culture which can be driven through either having legacy systems, lack of awareness of the integrated GRC tools or in some cases driven by “egos of being resistance to change”.
  • For some banking organizations, risk and compliance management is only an expanded view of routine financial controls and is nothing more identifying internal controls with some heat maps and ability to pull some reports – that does NOT truly provide an enterprise view of risk. Risk is pervasive throughout the entire organization. There are variety of departments that manage risk and compliance with various tools, models, varying taxonomies, with different frameworks in how risk should be measured at a functional level that continues for the organization to be exposed to regulatory scrutiny and a workforce that always seems to be in firefighting mode.

The Solution

  • These days, considering how advanced technology is, banking organizations can easily implement an integrated Governance, Risk, Information, Compliance and Audit Management (GRICA) system based on artificial intelligence which is a big data approach to GRICA. It can automate several risk and compliance process flows such as:
    • Automate the regulatory change management with alerts and tasks
    • Enable mapping of regulations and standards to internal and financial controls
    • Map risk to company & department goals,
    • Take in external data feeds from other internal systems such as credit risk, liquidity systems and create concept maps between credit, liquidity risk data to operational risk data at the asset level which can give you a view of where all the risks interrelate and provide enterprise risk view through a single platform
    • Automate efficacy and effectiveness of internal controls, which is tedious, and manual process requiring an army of people.

We offer the following solutions to Banks:

Value

  • Margins in banking are razor thin and banks are limited with product innovation. At the same time, cost of customer ownership and compliance is going up. The timing is right for banks to displace disjointed legacy application to advanced technologies and implement an integrated Governance, Risk Information, Compliance and Audit system. It should be able to increase operational throughput and reduce non-interest cost by 20-30%.
  • A sophisticated integrated E-GRC system will provide insight into predictive analytics and context around risk management, business strategy, objectives and performance which will enable the organization to make intelligent decisions about acquiring and retaining the best customers as well as safeguard reputation and financial health of your company.

A Case Study

Currently we are not aware of Banks that have implemented an integrated enterprise governance risk, information, compliance and audit management system.

The timing is perfect for your Bank be an early adopter and become our case study of implementing an integrated governance, risk, compliance and audit management system.

Please contact us so that we can setup a meeting.