Compliance management is at the heart of any bank regardless of their size. There is a clear distinction in how compliance management is carried out in small and larger banks. Enterprises can leverage millions of dollars on their compliance efficiency whereas, smaller banks remained constrained with their budget and resources.
Why assuring effective compliance is unavoidable
1. The risk of regulatory fines/penalties
Failing to regulatory compliance can cause organizations to pay not just thousands but millions of dollars in fines. For instance, Deloitte (Germany) was fined for EUR 175,000 recently, because of their inefficient regulatory compliance.
2. Termination/dissolution of business
Major violation of regulatory compliance can not only cause businesses to bear heavy fines but also the severity of the impact can become the reason for their closure. The uncertain nature of the business environment requires banks and financial institutions to vigilantly monitor and adhere to laws and controls set forward by the regulatory bodies.
3. The hierarchical glitches
Effective regulatory compliance requires total commitment from the management. If the top hierarchy carries ambiguities in compliance requirements then, it will lead to catastrophic results in compliance assurance.
4. Deficiency of technical/technology unawareness
Nowadays the compliance management system is heavily dependent upon the right technology. A bank lacking on its technical updates would increase the risk of being left behind. We recently published “GRC Technology and Compliance Solutions in the Digital Age” to better cover the risk and its possible mitigation strategies, we highly recommend you to explore the key initiatives in this regards.
1. Expand the compliance resources
Organizations can discover essential data on the regulatory requirement and how to better equipped to adhere to them with the right personnel onboard. Subsequently, a great route is to set up an expert group in your organization to manage all related paper works, administrative checks, and day-to-day monitoring.
2. Vigilant monitoring of compliance updates
Set goals for better compliance monitoring, identifying the right technologies and allocating the adequate budgets, all can lead to an improve compliance assurance. Proactive monitoring of compliance updates let you stay ahead of the game and ensure business viability.
3. Integrated compliance management system
Small businesses are searching for cost-effective solutions that match their needs. An integrated compliance management system can not only offer adherence compliance but also leverage the latest regulatory updates to improve compliance efficiency. We encourage you to review our recent update on Top 5 benefits for having a compliance management system to explore the advantages of having the right technology.
About the Company
360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.