Compliance Lifecycle

Reform, Comply, Report. STOP!!!!

Implementing some form of Regulatory Reform & Compliance Management in an organization could be as simple as the title indicates but rarely is, nor should it be. Quite the opposite, in recent years governing bodies and shareholders have been demanding increased accountability and management transparency resulting in a progressively more complex regulatory environment.

The BASEL III Accord is now requiring immediate action for those financial institutions doing business in the Eurozone, with most elements anticipated to be adopted in some fashion within the US in this decade.  A by-product of this regulatory framework highlights how a financial institution's real-time understanding of the dynamic relationships between assets, liabilities, and cash flow can become a key strategic advantage when deciding how to best allocate these resources to maximize profitability while simultaneously managing risk.  Along with the BASEL Accords, Dodd-Frank is raising the bar for risk management standards, and recently-modified FDIC assessment rules add another consideration necessary to properly balance risk and profitability.  Combined with the reduction of fee opportunities and the likelihood that interest margins will remain thin by historical standards, strategic asset-liability management and pricing are ever more critical to profitability.&nb