Risk & Compliance Management
The Situation Today
Post the 2008 macro-economic crisis, the regulatory landscape for financial institutions has changed drastically. Organizations face new, stringent regulatory reporting, and disclosure requirements. This has resulted in adherence pressures, and a burden to comply, which is making financial service providers more proactive. However enterprises today suffer from the lack of an enterprise-wide risk view because of siloed and insulated risk programs. With the emergence of new age technologies and myriad complex policies, governance structures appear to have reduced organizational efficiency and increased the cost of operations.
The operational challenges related to enterprise risk and compliance solutions have become more complex. Consider just a few challenges that financial institutions are facing today: the inability to link compliance regulations and policy settings to decision support workflows and systems; the need for frequent stress tests and valuations for capital and PL; complex regulatory reports for multiple jurisdictions; and the need to consolidate know-your-customer (KYC), anti-money laundering (AML), and anti-fraud operations and technology across silos and regions. These and other challenges are affecting financial instituions’ top and bottom lines.
Hence, organizations need robust business processes around their risk and compliance management solutions and risk based monitoring, with critical technology frameworks around enterprise risk management, so as to have an enterprise-wide view of regulatory adherence and avoid having insulated enterprise risk management solutions
How HCL Can Help
HCL’s enterprise risk management program integrates best-of-breed products, proprietary insights, tools, methodologies, and service competencies, to deliver a distinctive, tailor-made offering that translates into business outcomes.
The solution combines reporting, analytics, IT and process, integrated risk measurement, real-time monitoring, financial crime, and surveillance services. It also leverages assets such as the HCL BRICS framework (built on an IT and process operational risk and compliance platform, which standardizes and controls key data), the Oracle Financial Services Analytical Applications (OFSAA) CoE (a complex event processing (CEP) based engine for real-time risk measurement and monitoring), a factory operating model for regulatory reporting and best-of-breed partnerships, and — perhaps most important — our partnerships with some of the world’s leaders in risk and compliance services.
What You Can Expect
HCL’s enterprise risk management solution helps global financial services organizations reduce costs and gain an integrated view of internal and external cases of fraud through improved data accuracy and consistency, compliance reporting tools, business intelligence, analytics, and reduced latency process duplication and effort.
Here’s a snapshot of HCL’s capabilities in risk, compliance, and data management and transformation:
Example of COTS Product Implementation
HCL implemented the SPIRIT solution at a leading Dutch Bank to provide a calculation engine and risk reporting analytics for its Financial Markets Division. SPIRIT is an all-in-one OLAP-like product which combines scheduler, data-maintenance, data-validation, calculation and reporting functionalities. SPRITreports fast on huge data sets and is fully transparent on the performed calculations. These calculations can be tailored and external libraries can be used. The whole end-to-end process from data-gathering to reporting can be implemented quickly within SPIRIT leading to a stable, auditable and controlled environment. The integrated version control and automated regression-test functionality allows for controlled change-management.
Additional information on SPIRIT is available at a download here.
What We’ve Done for Others
HCL has delivered significant value for customers in the financial services industry by helping them transform their business operations across their enterprise IT. In particular, we have:
- Facilitated engagement across all service and solution areas, such as market risk platforms, consolidated regulatory reporting, running KYC operations, and consulting for enterprise GRC (governance, risk management, and compliance) for a leading investment bank
- Developed an integrated financial crime platform that can detect and monitor fraud for a leading Australian bank
- Implemented SAS threshold analytics for a leading global bank
- Implemented actuarial risk modules for group risk aggregation for the world’s 12th largest financial services group
- Developed payment card identity assessment (involves an audit for validating compliance with the payment card industry’s data security standard) and control testing for the online portals of one of the world’s largest consumer banking groups