Menu Close

Taking Preventive Action With Confidence In Governance For Financial Organizations To Stay Compliant


Financial Services Industry is the one that faces the most complex Regulatory landscape worldwide.  The non Compliance Risks that many Global Financial Companies are trying to address, stem from the lessons learnt from the biggest governance failures in this sector. The latest bank in the news is a Danish lender that is being investigated for money-laundering. The Financial Company in question is the subject of investigations from Denmark, Estonia, USA, UK and France.  Regulators from all of these countries started investigations as far back as more than a year ago.  Recently in the USA, the Securities and Exchange Commission (SEC) is investigating the lender. How much is the amount under investigation for money laundering? $230 billion dollars.  Not a small amount even for a large bank. Let’s look at what it all means when it comes to staying Compliant with Industry Regulations.

The after-effects of poor Governance in Financial Institutions

The Danish lender had to shut it’s Estonia branch. Because, the investigations revealed that most Russians used back channels and illegal transfers to launder about $230 billion dollars. As the bank tries to manage the huge Reputation crisis and is dealing with the loss of brand value and shareholder trust, Companies need to have insights on how such Risks can be avoided.

Choosing Preventive Action over Reactive steps

Preventive action requires less money and effort. For the Financial industry systems of Compliance, it is important that the right Controls are in place. In addition, there’s a systematic approach for monitoring the design, implementation and effectiveness of these Controls. Also it is of utmost significance that the Company retains the right data securely. So that if a specific problem needs to be investigated, one can go back to that data and make sure the Data is accurate and has been kept the right way.

Additionally, one of the other primary challenges for Compliance requirements is that there’s a lack of understanding, awareness and commitment from Boards and C-Suite to their Compliance obligations. Hence, it becomes almost mandatory to educate Board and C-Suite about the long-term impact of non-compliance. Likewise, the Board and C-Suite should also know about overall effect on revenues.

Staying Compliant with Industry Regulations

Over the last few decades, some regulatory changes have come up that include Sarbanes-Oxley Act (SOx), Basel II, OMB A-123, Data Privacy, Consumer Privacy, Check 21, SAS 70, Anti-Money Laundering (AML), BSA, PATRIOT Act, MiFID and Reg NMS. With new Regulations constantly being introduced, the method that Financial services Organizations adopted was to design or purchase point solutions to manage Compliance of these Regulations. These complex and expensive solutions created inefficiencies like duplication of efforts and decentralized & scattered data. Additionally, such solutions do not provide an integrated view of Risk and Compliance.

The Risk landscape is evolving and expanding continuously. Thus, the need of the hour for financial institutions is to step back and revisit the overall GRC mission and strategy. Then, find out whether it provides the right support to the institution’s long term sustainability and growth plans.

Confident Governance Services in GRC App

Using Innovation, Automation and Artificial Intelligence as the key drivers of GRC Performance, the Governance as a Service® Platform brought to you by Confident Governance make Compliance an intuitive process. It is not only easy to execute but also plays a major role in creating long term value. The Regulations and Policies are updated automatically in system at a centralized place. So, you are at the front of the Information Queue where you are the first to be informed of the change that directly affects your Business. You can also address and mitigate risks in real-time. So you will not be entangled with the constant challenge of insufficient Risk oversight.

Banks and Financial services Organizations have in recent times become more concerned about Risk and Compliance management. The innovative ConfidentG Compliance management platform provides the right insights on Risk and Compliance environment. And aligns with your Strategy for successfully implementing Governance, Risk and Compliance (GRC) programs. It is a perfect instance of how Emerging Technologies can be leveraged to adopt a new and holistic approach to Risk and Compliance management.

Visit us at our AppExchange listing today at and get confident with your Governance initiatives.

Leave a Reply

Your email address will not be published. Required fields are marked *