Mitigating Risk
- According to Accenture’s Compliance and Risk Study, regulations are getting tougher and the price of compliance is growing. Financial services firms globally will spend 4% of revenues on compliance-related activities, with that figure expected to rise to 10%. Meanwhile, firms incur hundreds of millions of dollars in penalties for failing to uncover financial crimes.
- As the regulatory landscape evolves, keeping pace means having in place an effective and broad-based extended enterprise risk management program that includes rigorous compliance governance and processes. Having supporting technology — including data analytics, personnel, and other resources — also will be critical. Deloitte
- The greatest compliance challenge(s) a board expects to face is obtaining comfort that regulatory risk is effectively managed. The reasons for outsourcing any or all of a firm’s compliance functionality include the need for additional assurance on compliance processes. Thomson Reuters
Vendor risk can create a single point of failure in a compliance strategy. Multiple single vendors can add complexity and costs and technology startups can be unpredictable. When you’re integrating multiple sources of data, you also need a reliable vendor to keep that data secure. And if your compliance strategy is in-house, do you have concerns that manual processes might lead to errors, filing mistakes or omissions? How do you remove risk from your compliance strategy?
Look for an agile partner of size and depth that is trusted and credible and understands global regulation to respond quickly to changing requirements. To mitigate both operational and regulatory risk, find a vendor that has an integrated solution and established platforms in addition to the subject matter expertise on global jurisdictions.
CSS can help you:
Remove unnecessary risks and single points of failure in your compliance strategy.
Mitigate geographic risks by having global subject matter experts on 90+ jurisdictions.
Eliminate fears of fines by regulators by automating shareholding reporting processes
How a peer mitigated risk:
A global investment manager had personnel across the organization responsible for various filings or sections of filings. The regulatory reporting team within their core compliance must approve 12 ADV filings made annually to the SEC. Over 100 people across the firm’s 12 entities collectively produce the data used in the ADVs. They chose CSS’s Fund Reporting solution to streamline the file production and corporate approval process to reduce the risk of missing a filing or filing inaccurately. CSS’s Fund Reporting structure, data validity checks and approval workflows enable the investment manager to file with confidence and mitigate any risk.