22 Hoosier Banker July 2016 PSP SHOWCASE Transform Your Compliance Program: Six Objectives of Compliance Management each banker, his or her role in the institution impacts how this loaded term is understood. Here at Continuity, as pioneers in the RegTech space, we’ve seen compliance managed in thousands of different ways, across thousands of financial institutions. When viewed across a wide swath of organizations, patterns emerge that might not be visible if looked at one institution or one regulation at a time. These observations across a large sample size have helped us to bring predictability to the unpredictable. Before we could design and build the industry’s first automated compliance management system (CMS), we had to ask ourselves, “What does this thing need to do?” Before we could answer that question, we needed to know, “What are the objectives this system is supposed to meet?” By reviewing regulatory guidance, and applying solid business management principles, we have identified six objectives that a CMS must fulfill. Objective 1 ‒ Know. An institution must know the rules that affect it, and the risks it faces, across all areas of its operations. Doing this requires constant vigilance across multiple federal agencies and dozens of unique product lines. Mapping regulatory requirements to the people, processes and products they affect is essential. Most importantly, understanding the risks these requirements pose to your business ‒ and deciding how to respond to those risks ‒ is the first ingredient in a successful CMS. Strong governance cannot be established until risk is well understood. Continuity’s RegAdvisor Pro™ helps you learn about the risks and regulatory requirements that affect you and delivers RegAlerts™ based on your institution’s profile and product mix. Objective 2 ‒ Adapt. A strong CMS must adapt constantly to changing external and internal business conditions. With regulators serving up 300+ regulatory changes per year, adaptability is key. Institutions also must be nimble enough to address market and competitive pressures, while at the same time being responsive to internal changes such as growth or contraction, staffing changes, new technology and the like. Rigid, slow-changing organizations cannot match the speed of their more agile counterparts. Continuity’s Tools Library™ helps you adapt through our automated prebuilt compliance procedures that keep you up-to-date on our watch, eliminating your work and worry when things change. Objective 3 ‒ Delegate. A third objective of compliance management is getting the work of compliance into the hands of those who will do it. Assigning tasks and following up on their completion has been more art than science in traditional organizations, relying on a hodgepodge of ticklers, calendar entries and endless email threads. In the best organizations, modern technology makes assignment and tracking a trivial matter. The ability to delegate easily and accurately distinguishes highAbout the Author Pam Perdue is executive vice president, operations, for Continuity, New Haven, Connecticut. She previously served as chief compliance strategist and has more than 20 years of regulatory industry experience. A graduate of The Ohio State University, Perdue has worked as a federal examiner, chief compliance officer, educator and consultant. The author can be reached at 888-932-6759, ext. 201, email: pperdue@ continuity.net. Continuity is an associate member of the Indiana Bankers Association and an IBA Preferred Service Provider. Compliance” means different things to different people. For
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