Financial Institutions Lead the Rest When it comes to Compliance and Risk Management

Compliance and risk management are fields in which every business dabbles in occasionally. However, compared to the rest of the companies, financial institutions and banks are far ahead in this aspect as stated by a survey conducted by a renowned group of companies. Look at the scenario from any perspective and it is fairly obvious that financial institutions have put up a far better performance. Considering the big picture, it becomes evident that bankers have to analyze several things as they strive to comply with thousands of governmental policies, industrial standards and proven and tested business practices.

Characteristics of the Leading Companies in Risk Management and Compliance
After carrying out extensive analyses, the conducted survey states that firms who showcase performance graphs above the par level share several interesting characteristics. As such, these features are exactly what help them to gain a competitive edge and thrive in the market. Here are the main ones:

  • Almost seventy percent of these leading companies have implemented consistent and reliable compliance policies.
  • There is a designated team of employees whose sole responsibility is to handle governance and risk management issues. Once again, this is true for seventy percent of the companies.
  • There is a clear visibility regarding key information which is mandatory for managing and controlling compliance and other security related procedures.
  • The management is always given complete information about all the risks associated with information technology. A massive seventy eight percent of companies heed this statement.
  • Internal policies and other external governmental laws have been implemented according to the industry standards. Moreover, there are designated teams which monitor these and ensure that all the requirements are always followed. This is followed by sixty seven percent of financial institutions.
  • Almost sixty seven percent of these companies have already identified the information and data which is utilized during audits and reports.

From Here Onwards

Now that banks have grasped and held onto compliance, they can start focusing on other things as well that will lead to even more improvements. For instance, a more sustainable and continuous compliance model can be established through automating and streamlining processes. This would lead to consistency and unification across the organization in terms of risk management and compliance.

The Bottom Line

In a nutshell, the main points of the survey are that financial institutions definitely acquire the topmost slot when it comes to securing and protecting their businesses. The strategies implemented for this purpose allow these companies to transfer their capabilities to other aspects as well, and thus, they excel in risk management, compliance and governance.

A previously conducted research performed by the same company shares similar results with the survey under discussion. In almost all of the investments, the main drive is compliance, which is considered thoroughly or in all possible aspects. This includes compliance to all governmental regulations, industrial standards, best practices, market regulations and other internal policies.

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