Managing regulatory risk has grown increasingly difficult for many organizations. Financial institutions are tasked with demonstrating compliance in a complex regulatory environment that produces an unprecedented volume and velocity of change. This regulatory environment poses significant challenges including:
- Shifting Regulatory Landscape – Numerous regulatory changes since Dodd Frank Act in 2010, originating from various sources (e.g., CFPB, FRB, OCC, CFTC, FinCEN).
- Increased Enforcement Actions – 30% increase in Q1 of 2015 and another 18% in Q2 of 20151 in addition to the $235B in fines paid out since 2008 by 20 of the largest global banks.
- High Cost of Operationalizing and Maintaining Compliance with Changing Regulations - Regulatory changes often require updates to processes, systems, and policies and procedures which result in additional costs.
- Difficulty Demonstrating Compliance to Regulators - Regulators require increased transparency into proving compliance. The expectation is for a sufficiently documented regulatory change management process.
Deploying a centralized regulatory change management framework is essential for demonstrating compliance, managing regulatory risk, and preserving value.