How Banks can Ensure Effective Compliance Risk Management

Risks are the part and parcel of the operations that take place in the banking domain. Everyday functions carried out by banks involve high-stake deals and transactions, which makes the task of overseeing them extremely important. As the daily work is carried out by mere mortals, it is difficult to say with any certainty that every job done will be executed perfectly. Human beings are prone to making errors and if these mistakes are not caught in their infancy, they can turn into major problems. Such problems can be detrimental to the health of the banking industry as a whole and may lose them the trust of the customers. In order to avoid such a situation from developing, regulatory bodies have been devised to keep a check on the operations of banks.

Regulatory Bodies and Compliances

A regulatory agency is a public authority or government agency responsible for exercising autonomous authority over some area of human activity in a supervisory capacity. Regulatory bodies enforce standards and also oversee the use of public goods and regulate commerce. As the banking institution is a vital cog in the wheel of commerce, the role of regulatory bodies is crucial for their systematic and smooth operation.

Regulatory bodies are responsible for creating and implementing compliances so that operations are performed in a regulated manner with proper risk management. Adhering to the compliances devised by the regulatory bodies is mandatory for banks and other organization. If an enterprise is unable to follow the policies, a fine is imposed on it. Depending on the severity of the infringement committed, the organization may also have to suffer the ignominy of a lawsuit in certain scenarios. Due to the possibility of such repercussions, it is better to avoid risk which can lead to damaging and embarrassing situations.

Risk Management in Banks and ABA

Making use of a Risk Management System is a great way to ensure complete adherence to the policies laid out by regulatory bodies. The American Bankers Association (ABA) believes that government policies should recognize the diversity of the banking industry. As far as laws and regulations are concerned, it has the belief that they should be tailored to correspond to a bank’s hometown market, business model, and risk profile. It has a lot of information about regulation procedures and boasts of a staff with expertise in the banking domain. This organization supports America’s hometown bankers and helps in economic growth and job creation.

As the working of ABA is integral to the American banking world, it is important that you use a Risk Management System, which is approved by ABA for adhering to the regulations. Software backed by ABA will be appropriate and the best fit for your bank as it will let you grow your business while being compliant with the regulations.

ABA Endorsed 360factors’ Predict360 Solutions

Predict360 Solution seamlessly integrates modules which can be used for a variety of tasks. These modules are powered by Artificial Intelligence (AI) which helps with the automation of tasks and cuts down on the number of resources. This helps in reducing the cost of operation.

Predict360 Solution is quite affordable and has low upfront and ongoing costs for banks and financial institutions of all sizes. The expert connects that you are able to avail after purchasing the Risk Management System adds real value to the overall experience. You can also make use of consultant managed service which enables third-party consultant firms to help manage their clients’ systems and provide more value from your relationship with existing consultants.

Predict360 Solution Modules

Predict360 Solution is an exceptional tool for managing compliances and lowering risks. It comprises of the following modules which can be procured for creating the perfect Risk Management System for your bank:

1. Compliance Management Module: It enables organizations to collect, store, track, and collaborate on all activities as per the compliance and regulatory reporting requirements. It is a very important module that ensures full compliance of a bank’s operations with the policies created by regulatory bodies.

2. Regulatory Change Management Module: This module helps in identifying, quantifying, monitoring, and minimizing risks. With this risk management tool at your disposal, you will be able to access the environmental, financial, legal, and reputational and safety risks at the business unit level.

3. Audit Management Module: The module enables organizations to manage their complete audit lifecycle. It boasts of a highly configurable, flexible data-gathering and aggregation framework which enables organizations to set up any type and structure of audit. With its amazing capabilities, it is great for risk management and a very important part of the Predict360’s Solution.

4. Policy and Procedure Management Module: An integral part of Predict360’s Solution, this module provides organizations the ability to understand all aspects of the document lifecycle. It can do a number of tasks relevant to procedure management including creation, approval, centralized storage, remote access across the organization, access control, version control, change tracking, and change notification.

5. Learning Management Module: This unique module allows training to be linked with the associated regulatory change, risk, audit, incident, case, policy, and procedure and qualification requirement. With the right learning your employees are able to understand and follow rules which help in better risk management.

6. Qualification Management Module: This module monitors, aggregates, and maintains employee qualifications. It streamlines the qualification process and ensures that employee qualifications remain current at all times.

7. Anonymous Hotline Reporting Module: This module acts as a single centralized data repository for ethics, risk, and compliance management. By ensuring all the incident data is collected at all times, it helps in risk assessment, risk analysis, and creation of remediation plans.

8. Expert Connect Module: With this module at your disposal, you get access to a wide range of consulting experts who are former and existing compliance managers, regulators, system operators and consultants across a variety of industries. By making use of this module, you can take help of experts and clear your doubts for better risk management.

9. Performance Management Module: By aligning individual goals to organizational goals, it streamlines the performance management process and promotes goal achievement. This allows the institution like banks to increase their performance and remain compliant with the standards laid out by regulatory bodies.

About the company

360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.

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