The Compliance Problem and Solution

The Compliance Problem and Solution

The Future and GRC’s Focus

Change in recent regulation has been fast and furious for many reasons. The credit crunch, EU harmonisation, increased financial crime, BREXIT, COVID 19 are but a few examples and there will always be more. This has led to heightened regulatory expectations with respect to the degree to which firms must focus on compliance and risk as well as the resources dedicated to these disciplines.

Now developed regulatory markets require firms to demonstrate a complete and robust regulatory risk model comprising of –

• A strong 3 Lines of Defense model
  • 1^st Line – The Business; owns the risk and must own and perform a suitable control programme
  • 2^nd Line – Compliance; an advisor and oversight function to the business
  • 3^rd Line – Audit; independent risk assessor of the 1^st and 2^nd lines for weaknesses
• Solid Financial Crime programme
• Appropriate Systems and Controls
• Strong Governance
• Strong Culture

GRC helps you build horizontally (across the regulatory subject matter) and vertically (up and down a business line/all business lines) addressing the above model, recognizing that one size does not fit all.