Why Banks Should Implement an Integrated Risk, Information, Compliance and Audit Management System

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 Software (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:

o

o    Automate the regulatory change management with alerts and tasks

o    Enable mapping of regulations and standards to internal and financial controls

o    Map risk to company & department goals,

o    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

o    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:

·         Automated Action Plans When Policy & Regulation Changes Using Artificial Intelligence (AI)

·         Large Bank to Automate Efficacy of Internal Controls through Artificial Intelligence

·         Bank to Map Operational Risk Data with Financial Risk Data to Get Better Risk Monitoring

·         Bank Regulatory Change Management Automation

·         Banking GRC Business Intelligence Platform

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