How to Respond to the Regulation Avalanche – Shared Assessments

10 Sep

sl12.jpgAs follow up to my previous blog on how the avalanche of regulation can stifle innovation in banks and credit unions, I wanted to share some ideas to start the discussion on organizational steps that you can take to enhance the risk and compliance culture. Maturing the processes internally, requires education – and while that takes time and effort, it can pay off by streamlining decision making. By getting started now, you should avoid being buried in the avalanche.

Assess Your Organization’s Risk Appetite

Each organization has developed a culture and risk appetite that can be influenced by internal and external factors.

Recent data breaches and cyber-attacks have shifted the attention to corporate governance. Enforcement actions, risk committees and regulatory audit pressures advance the need for financial institutions to assess internally their risk posture. Governance models should be risk-based – and right sized based on the market landscape.

The regulatory burden however has accelerated a focus on stringent controls, without identifying the operational and business readiness steps needed to help financial institutions innovate and advance their marketing efforts. Investing in people, process, and education at all levels can improve the “Risk IQ” internally. That can result in more effective decision-making, and advancing speed to market for innovative products and services.

Source: How to Respond to the Regulation Avalanche – Shared Assessments