Many institutions have expanded risk and compliance budgets in recent years to meet demanding and ever-evolving regulatory requirements. But often, these efforts are not as specific nor as efficient as they could be. Accordingly, recent trends point toward finding efficiencies through technology and managed services that allow for proactive and tailored approaches.

To avoid expending efforts in noncritical areas, institutions must view the future with an emphasis on technology and management methods. Capco Center of Regulatory Intelligence (CRI) consultants can assist with current-state analysis, customized solutions engineering, and ongoing, integrated compliance management.

Know where you stand. To competently manage compliance risk, your institution must understand its current state. Look at your business units and procedures. Are your three lines of defense clearly defined? Are certain teams siloed without access to collaborative efforts? Take an account of where your institution’s staff is spending their time. Are there labor-intensive areas that overextend your team? Evaluating current structure and workflow can shed light on areas for improvement and potential opportunities for outsourcing to decrease repetition and more effectively allocate resources.

Understand your data. How much data are you capturing and more importantly, how much of this data are you using? In many instances, institutions use data-collection measures that are inexact or inadequate, which generates data with ambiguous functionality. These details can preoccupy compliance staff and top management, blinding them to more critical exposures. It is essential to review metrics and recognize how identified patterns and trends can improve your business. Too often, institutions simply add new metrics to approximately fill in assessed gaps, allowing legacy controls that may no longer be the best processes to survive. 

Maintain your systems. Once you find areas for improvement within the institution, and implement automation and process improvements, be sure to actively manage controls and information systems. Systems require periodic attention to evaluate benefits and drawbacks. It is also necessary to terminate systems when they are replaceable or no longer effective. To effectively manage compliance and supervisory risks, institutions must abate duplication and run gap analyses on an ongoing basis. It might be necessary to re-map risk areas or amend focuses based on shifting priorities. 

Institutions that can prioritize core business processes by more efficiently allocating resources reduce compliance gaps, implement precise fixes, proactively protect against regulatory risk, and confidently move into new market areas. How can Capco CRI help your institution gain this competitive edge?

Capco CRI’s Data Feed offers uniquely tailored compliance updates sourced from almost 1,000 primary legislative and regulatory bodies and covering over 100 topic areas. Our consultants will work with you to map key risk areas and get rid of the white noise and repetitive processes so internal staff can focus on decision-making and implementation. Contact Leah Robinson for more information.