Banks and financial services organizations of varying sizes are now concerned about risk and compliance management more than ever. They require to implement well-planned strategies for governance, risk, and compliance programs, while making sure how technology can be effectively leveraged for the purpose of adopting a more holistic approach to risk and compliance management. Over the last two decades or so, the aspect of compliance in finance has evolved quite a bit. Companies would require the assistance of industry experts like Scott Tominaga to cater to this evolving environment.
Drastic shifts have been witnessed in the role and functioning of banks and financial services organizations over the last few years. This has brought about brand new and innovative ways to regard risks. Many new risks cropping up in this domain can be attributed to the explosion of new businesses, globalization, as well as growth in technology, and gains in efficiency. In addition to tremendous economic growth, such changes have also led to an increase in the multitude of risks, thereby resulting in a fundamental change in the approach to risk management. Outsourcing of business processes has particularly brought a distinctive external risk to banks. They now have to manage a dynamic range of risks associated with their outsourcing partners. Operating efficiencies end up necessitating just-in-time treasury and cash management, and banks have to make sure that they are able to optimally mitigate the risks that arise out of this.
Every year, banks and financial services organizations end up spending a good amount of their time and money in mitigating risks, as well as complying with a growing set of regulatory and operational compliance requirements. They hire experts like Scott Tominaga to make this process a lot smoother and effective. One of the biggest reasons why compliance is needed in all banks and other financial service organizations is that it helps maintain a strict process that keeps such organizations in check. Tight compliance makes sure that there are better rules to protect everyone.
Many companies today address compliance with a ‘silos’ approach. Risk activities and compliance are commonly undertaken by distinguished departments with the use of varied data sets. Owing to this fact, such companies find themselves managing risk, compliance and governance initiatives in a discrete manner, when the risks are interdependent and controls are shared across the company. Moreover, risk initiatives and parallel compliance lead to duplication of efforts and cause the expenses linked to compliance to spiral out of control. For the purpose of meeting deadlines and other organizational constraints, modern financial organizations need to adopt a strategic or measured approach to governance, risk, and compliance. The current risk and compliance management strategies adopted by most of the financial institutions and banks today tend to comprise of separate silos that tend to deal with risk and compliance management. In multiple cases, there also tends to be duplication of data collected to feed these silos, and the results are presented in dynamic formats.