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Have a Look At the Risk Management and Rise of Regtech - Shield

Some very high-profile misconduct cases are posing real challenges in carrying out the investigation. Wade through the risk management and rise of regtech in global financial services firms, providing solutions in the investigation. See this presentation for full details and visit the link - https://bit.ly/3aCQiSw

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Have a Look At the Risk Management and Rise of Regtech - Shield

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  1. RISKMANAGEMENT ANDRISEOFREGTECH Herearethethingsthatyouneedto know www.shieldfc.com

  2. We’vewitnessed,viasomeveryhigh-profilemisconduct cases, the real challenges some financial services firms arefacinginsupplyinginformationtosupport investigations.Acaseinpointistherecentlycompleted AustralianBankingRoyalCommission(RC). ReportingfromtheRCincludedsomeratherstartling revelations. And, the implications of some of the findingsarejustasrelevanttoglobalfinancialservices firms,astothosenamedintheRC’sreports.

  3. TheRCinitiallyrequestedfromthe60+Australianfinancialservicesfirms10 years’ worth of misconduct data, alongside action plans and the correspondingremediationprograms. The RC concluded that if these firms were unable to provide the requested information,howcouldthefirms’seniormanagementorindeed,theirboards, be confident that the risk reporting presented to them was complete and presentingaholisticviewoftheextentofcompliancefailures?

  4. Dataretentionrequirementspermitting,Isuspectthatmanyglobalfinancial institutions would also struggle to easily, quickly, and comprehensively compilethistypeofdata,andcertainlycoveringa10-yeartimeperiod. But of broader concern, anyone serving on a Board or ExCo should feel confident that the risk reporting presented to them is comprehensive and complete. And, if the Board or ExCo consider that they aren’t getting the completepicture,theirroleistochallengeuntiltheyaresatisfiedtheyareable toeffectivelydischargetheiroversightduty.

  5. As those of us who have been actively involved in supporting investigations will know, they can be highly labor-intensive – drawing resources from the firstandsecondline,andoftenworkinginpartnershipwithindependentand specialist investigative teams. The amount of data collected, collated, and then analyzed (in my experience, sometimes via the ubiquitous Excel spreadsheetorthree)canbeoverwhelming.

  6. Withregulatoryreformsdrivinganincreasingbreadthand varietyofcontrolstobeimplementedanddatatobe collected, analyzed, and reported upon, the situation will becomestillmorecomplicated. There is no doubt that RegTech solutions are providing very innovative ways to address growing and increasingly detailedregulatoryrequirements.Theserangefromtargeted solutions to address specific MiFID II Best Execution requirements, to control tools such as electronic communicationssurveillancethatdetectandcapturemarket abuseattheveryearliestopportunity.

  7. Firmsarecontinuingtoevolvehowtheymeasureandmanageconductrisk. This may include revising metrics in light of changes to the strategic business model, reviewing the effectiveness of escalation channels and governance in the context of the Senior Managers Regime, alongside reviewingtheirriskappetitestatementsandthresholds. SCHEDULEADEMOWITHAMEMBEROFOURTEAM

  8. What is key is for firms to also have an architectural vision showing how the various RegTech solutions fit together and into the broader infrastructure,alongsidehowthedatatheyholdfeedsintotheoverallrisk and control framework. With so many conduct risk data points – complaints,bestexecution,andinternalbreachestonamebutafew–this iscritical. Withoutthisvision,firmsruntherisk–ashighlightedbytheAustralianRC –ofdisjointedreporting.And,attheveryworst,theinformationpresented totheboardandExCoswillbefragmented,andincomplete,presentingan inaccuratepictureoftheextentofconductriskissueswithinthefirm.

  9. https://www.facebook.com https://www.instagram.com/shield.regtech/ https://www.shieldfc.com/ info@shieldfc.com https://twitter.com/Shieldregtech

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