Across the different sectors, organisations have a legal obligation to adhere to regulatory requirements. Compliance management is therefore significant in any industry. However, the importance of compliance in the banking industry is even more than in other industries — the below reasons highlight why compliance is integral to the banking industry:

  • After the 2008 financial crisis, banks have faced an increase in the level of scrutiny from the governments. The governments require innumerable statutory and regulatory compliance. Every organization therefore requires a compliance management program to ensure they have a good understanding of the regulations, can translate them into policies, standards, business-as-usual procedures, and processes to ensure compliance.
  • Regulators are not just more aggressively pursuing institutions who break the law; lawmakers are imposing higher penalties on lawbreakers. Compliance has therefore become a pivotal issue for organisations because failing to complete due diligence on customers and transactions leaves a company open to scrutiny and litigation.
  • If organisations face legal action for non-compliance the consequences could be catastrophic - ranging from fines, temporary suspension to permanent closure.
  • Non-compliance with regulations will have a significant impact on the brand reputation of the organisation. For financial institutions, customers are more sensitive to brand reputation and non-compliance would lead to a significant decrease in the customer base

Banking compliance and risk has therefore become one of the most significant concerns for financial institution executives. New laws and regulations continue to emerge, such as conduct-risk, next-generation Bank Secrecy Act and Anti-Money Laundering (BSA/AML) and new risks e.g., risk culture, and third & fourth-party (subcontractors) risk, etc. All banks differ in the way they operate, but one thing they have in common is compliance.
So how does Risk Imperium Consulting support organisations in meeting and maintaining their compliance obligations?
As a security-minded organisation, you are likely to have built a series of defences on your networks, endpoints, and applications, and in the cloud, hoping multiple layers will keep you safe from cyber-attacks. While a layered defence is critical to a sound security strategy, you need context from coordinating across all your layers of defence with the right people, processes, and technology working together in concert. Risk Imperium can help:

    • Implement a robust compliance mechanism to monitor your organisation’s and client’s activities and determine whether the organisation is compliant with all the required statutory and regulatory requirements; communicate changes in rules or guidelines issued by regulators to all departments
    • Integrate Compliance and IT training to create awareness and enhance understanding of the controls required to achieve compliance, how they are operationalised and measured for effectiveness within your organisation.