Effectively Manage Your Risk and Compliance Requirements

Since the financial crisis of 2008, banks are under increasing compliance scrutiny. More than 20% of "run the bank" cost base is spent on governance, risk and compliance. That is a huge amount and it is only going to get bigger. Today, regulators are looking at a few areas such as mortgage fulfillment, deposits, credit cards, and loans. However, these demands will only grow as banks gain more access to different types of customer data and security threats increase from multiple sources. New risks are emerging that are catching the eyes of regulators, including risks associated with technological innovation (FinTechs), ageing populations, and climate change. It is almost impossible to predict what the regulators will require in the future.

Banks need to drive effectiveness and efficiencies into their risk and compliance programs, so they meet applicable laws, regulations, and supervisory expectations, without draining their profitability. Meeting regulatory requirements has shifted from being a "one-off" project, to "business as usual". And therefore, banks must modernize their current processes to meet these requirements in a timelier and cost-effective manner. From a technology perspective, there are a few critical recommendations:

• Simplify and automate redundant tasks, such as data collection and standardization
• Invest in tools to modernize current processes

Banks are responding by putting more emphasis on risk-and-control frameworks that allow them the flexibility and control to respond more efficiently. In addition, these models and frameworks are being influenced by new insights created by the power of AI and Machine Learning tools.

Regardless of what requirement the banks are responding to, all of the models rely on the consistent and standardized ingestion of massive amounts of structured and unstructured data. Further, the ingestion must include metadata and lineage capture, along with adherence to financial logical data models. Without these essential foundational pieces, it is difficult to prove the validity of any model. At Next Pathway, our Risk Management Platform is designed to automate and govern the collection and mapping of data to any enterprise logical data model, for use across any regulatory requirement.

Here are a couple of key components of our platform:

• Based on open-architecture, so it can be easily implemented and configured to meet any regulatory requirement.
• Based on industry-standard models so the data schemas are compliant to financial services’ standards.
• Provides automated data collection – which means, no ETL code needs to be written to ingest the data.
• Automatically captures metadata to ensure lineage is stored and accessible to defend any compliance requirement.

These capabilities are essential to efficiently and effectively manage your risk and compliance needs.

To learn more about the features of our products, and how we can assist with your company in meeting your regulatory requirements, visit us at www.nextpathway.com