Modernizing Compliance Risk Assessments

As the financial services industry continues to evolve, Financial Institutions (FIs) are exposed to more risks than ever before. The changing regulatory landscape and FI‘s increasingly complex operational structures introduce new compliance risks that must be assessed and mitigated. Simultaneously, as regulators have increased their expectations for more robust risk frameworks, FIs must continue to evaluate whether they adequately capture and assess the risks their organization faces to align with regulatory expectations.

As organizations expand product and service offerings and incorporate new technologies into their operations, managing new and more complex compliance risks becomes increasingly challenging, resource-intensive, and more difficult to achieve the necessary level of risk mitigation.

Compliance risk assessments (CRAs) are a critical component of a risk management framework intended to help organizations capture and assess their risk exposure. However, many organizations use outdated methods to conduct their CRAs and often rely on manual processes and antiquated tools that have not kept pace with the expanded scale and complexity of their risk profiles. FIs have the opportunity to enhance and modernize their CRA process to control for and address these inefficiencies.