ARC Logics for Financial Services. Risk & Controls Module

Transcription

1 ARC Logics for Fiacial Services Risk & Cotrols Module

2 Wolters Kluwer Fiacial Services ARC Logics ARC Logics Risk & Cotrols Module Moutig ucertaity surroudig the global ecoomy, ew ad complex regulatios, icreased scrutiy ad oversight ad growig iteral pressure to better maage risk are creatig ever-before-see challeges for the fiacial services idustry. You face uique ad specific regulatory demads for uderstadig risk ad the cotext of that risk across your orgaizatio. Compaies must ot oly meet these regulatory demads, but also effectively maage the dyamic tesio betwee risk ad opportuity. May orgaizatios struggle to attai a fully-developed or well-itegrated risk maagemet fuctio. ERM programs are ofte too focused o operatioal ad compliace-related risks ad fail to target ay log-term strategic goals, which are more likely to positively impact overall success. As a result, these programs fall short of costitutig a complete, robust risk maagemet process. Additioally, existig risk maagemet activities still ted to be siloed either by risk disciplie ad/or busiess lies rather tha providig a true eterprisewide view of a orgaizatio s complete risk picture. The iformatio beig collected is ot used to drive orgaizatioal decisios or capitalize o emergig opportuities. May orgaizatios are re-evaluatig their risk maagemet practices because of icreasig regulatory scrutiy ad growig cocers over the shortcomigs of curret risk approaches. As ERM programs evolve, every orgaizatio must develop its ow ERM framework based o its particular size, culture, risk appetite ad busiess strategies. While there is o oe-size-fitsall approach to establishig a risk program, there are several thigs orgaizatios ca do to esure they ecouter miimal risks while achievig maximum beefits. ARC Logics is a eterprise risk maagemet (ERM) solutio desiged to moitor, maage, report ad documet ERM specifically for the eeds of the fiacial services idustry. The ARC Logics Risk ad Cotrols module provides the framework ad visibility you eed for a itegrated approach to measurig, maagig ad moitorig compliace, operatioal ad fiacial risk across your eterprise. This module provides a commo platform to: Ehace strategic plaig Icrease uderstadig of risk exposure Improve decisio makig Eforce accoutability Provide a trasparet, traceable, documeted, deliberate decisio makig process throughout the risk maagemet lifecycle Stregthe iteral culture ad operatios Reduce audit ad cotrolstestig costs Provide the correct iformatio i the correct cotext for the iteded audiece ( regulators, stakeholders, shareholders ad ivestors) 3

3 Risk & Cotrols Module Flexibility ad Trasparecy at Their Fiest Oe of the key aspects of a effective risks ad cotrols system is how well it provides cotrol of the process ad leds trasparecy ito results. Wolters Kluwer Fiacial Services experts have take their kowledge of the fiacial services idustry ad delivered best practices maagemet of risks ad cotrols i this module. With it, orgaizatios are able to hold busiess uits accoutable for completig their risk fuctios, eablig a eterprisewide view based o the data that is collected. The Risk ad Cotrols module is made up of te core features desiged to provide greater trasparecy ad process maagemet. These features work together i a flexible structure to supply the ecessary itegrated data that orgaizatios are ow required to moitor ad report o. Each feature ties ito the other, likig every piece of your eterprise risk ad allowig for complete reportig to iteral stakeholders ad regulators. Libraries By havig cetral libraries of risks ad cotrols, your orgaizatio elimiates the redudacy of multiple istaces of the same risks ad their associated cotrols. With a cetral repository, you ejoy the beefits of a sigle library etity givig seior maagemet ad the board of directors a accurate view of your compay s overall risk with precise reportig. ARC Logics Risk ad Cotrols Libraries ca hold pre-built cotet, ifused with Wolters Kluwer Fiacial Services kowledge ad expertise. The risks ad cotrols withi the module are created by a team of idustry experts, each with may years of operatioal experiece i the fiacial services idustry. Topics are available for licesig to allow you to hit the groud ruig with a base from which you ca build a persoalized library of risks ad cotrols. The te core features that make up ARC Logics Risk ad Cotrols are: 1. Libraries 2. Risks ad Cotrol Assessmets 3. Cotrol Attestatios 4. Icidet Maagemet 5. Sceario Assessmet 6. Eterprise Idicators: KRIs ad KPIs 7. Eterprise Reportig 8. Issues ad Actios Maagemet 9. Testig 10. Surveys 4

4 Wolters Kluwer Fiacial Services ARC Logics Base Topics Available for Licesig by Idustry Bakig Risks & Cotrols BSA/AML Deposit Compliace Fair Ledig ecommerce FDIC GLBA Geeral Compliace Ledig Compliace Privacy Servicig Compliace Securities Risks & Cotrols Advertisig ad Marketig Ati-Moey Lauderig Program Cliet Privacy Code of Ethics Custody Disaster Recovery ad Busiess Cotiuity Pla Duty to Supervise Firm Supervisio ad Oversight: Moitorig for Isider Tradig Isurace Risks & Cotrols Checklists Operatios Maagemet Compliace/Legal Sigoff Complait Hadlig Expert System Claims Isider Tradig Maiteace of Books ad Records Mutual Fuds: Fees Charged to Customers Portfolio Maagemet Portfolio Maagemet ad Reviews Proxy Votig Reportig Requiremets Risk Maagemet Structure Iteral or Exteral Audit Marketig & Sales Outside Parties Producer Licesig Periodic Samplig & Moitorig Policyholder Services Sales Practices: Commuicatios with the Public Sales Practices: Customer Iformatio ad Disclosures Supervisory Persoel Trade Errors Trade Practices Traiig ad Educatio Valuatio of Securities Policies ad Procedures Uderwritig ad Ratig Records Maagemet Supervisory/ Maagemet Oversight Traiig With ARC Logics Risk ad Cotrols Libraries, your orgaizatio ca ejoy cetral libraries of risks ad cotrols, elimiatig the redudacy of multiple istaces of the same risks ad their associated cotrols ad preparig the way for a accurate view of overall risk. IT Risk Maagemet Impact Zoes Cotrols Acquisitio of Techology ad Services Huma Resources Maagemet Audits ad Risk Maagemet Leadership ad High Level Objectives Cofiguratio Maagemet Moitorig ad Measuremet Desig ad Implemetatio Operatioal Maagemet Physical ad Evirometal Protectio Privacy Protectio for Iformatio ad Data Records Maagemet 5

5 Risk & Cotrols Module Risk ad Cotrol Assessmets This feature of ARC Logics Risk ad Cotrols module is the home base for data poits. From a sigle scree, users (ad maagers) have a summarized ad actioable curret ad historical view of assessed risks ad cotrols. With this sapshot view of the assessmet process, orgaizatios ca validate their risk ad cotrol eviromet. The Risk ad Cotrol Assessmet feature eables users to: Defie risks ad associated categories i the risk library Associate risks with may processes Defie the likelihood ad impact for risks Record multiple impact types (direct, idirect, reputatio, regulatory) Capture the busiess ad audit assessmet of risk Idetify the target risk scores Defie periodic reassessmets of risk ad associated sig-off structure The Risk ad Cotrol Assessmets feature is the home base for data poits. From a sigle scree, users (ad maagers) have a summarized ad actioable curret ad historical view of assessed risks ad cotrols. 6

6 Wolters Kluwer Fiacial Services ARC Logics Cotrol Attestatios The Cotrol Attestatios feature provides documeted, maageable accoutability for cotrols. By usig it, orgaizatios are able to report o the actual status of a cotrol s performace. As a core compoet of risk maagemet, attestatios offer real-time commetary to seior maagemet ad boards of directors as to the validity of orgaizatios processes. Cotrol Attestatios are used to: Establish basic trasparecy ad reportig obligatios Raise ad address issues through the assessmet process Reveal isufficietly cotrolled areas Highlight areas of cotrol uderperformace Provide detailed cotrol reportig to various levels of maagemet The Cotrol Attestatios feature provides documeted, maageable accoutability for cotrols. By usig it, orgaizatios are able to report o the actual status of a cotrol s performace. 7

7 Risk & Cotrols Module Icidet Maagemet Through this feature of the Risk ad Cotrols module, orgaizatios ca have a customizable workflow tool that allows for flexible maagemet of losses, ear losses ad profit made i error. The objective is to provide a cosistet ad structured approach to idetify, capture, aalyze ad report. Icidet Maagemet promotes trasparet ad effective loss evet compliace maagemet. Icidet records ca also be used to highlight emergig treds ad idetify cotrol gaps ad correlatios betwee losses, risks ad cotrols. The Icidet Maagemet feature allows orgaizatios to: Create icidet recordig templates that idetify data to be captured, workflow ad approvers Record actual fiacial losses, ear misses, fiacial profits from errors ad regulatory breaches Create a complete record of icidet details icludig breakdow, recovery, currecy ad resolutio Aalyze losses by regulatory loss categories Lik icidets to causes (risks ad/or cotrols) for causal aalysis ad to assist risk assessmets Provide automatic icidet reports to staff o a periodic basis With the Icidet Maagemet feature, orgaizatios ca have a customizable workflow tool that allows for flexible cotrol of losses, ear losses ad profit made i error that establishes a cosistet ad structured approach to idetify, capture, aalyze ad report. 8

8 Wolters Kluwer Fiacial Services ARC Logics Sceario Assessmet Sceario Assessmets are a itegral compoet to maagig future ad strategic risk. ARC Logics empowers its users by itegratig Sceario Assessmets with a architecture that liks the cotext of curret risk maagemet decisios captured i valuatios like Risk Assessmets ito the Sceario Assessmet process. Scearios are iteded to form a basis for strategic coversatio they are a method for cosiderig potetial implicatios of ad possible resposes to differet evets by addressig blid spots through challegig assumptios, expadig visio ad combiig iformatio from may differet disciplies. While risks ca have cotrols put i place, it would be impossible to implemet the same level of costrait for scearios. It is more about implemetig certai procedures, icludig mitigatio plas ad satisfactory isurace coverage. Scearios take a much wider, hypothetical view of the etire busiess. Scearios are iteded to form a basis for strategic coversatio they are a method for cosiderig potetial implicatios of ad possible resposes to differet evets by addressig blid spots through challegig assumptios, expadig visio ad combiig iformatio from may differet disciplies. Eterprise Idicators: KRIs Ad KPIs A ERM system is oly as good as its ability to help you gai isight from moitorig curret data ad evaluatig future treds. The Eterprise Idicators feature provides this isight with the quatificatio ad reportig of risk ad compliace iformatio i a cocise ad effective maer. Eterprise Idicators has the followig key beefits: The productio of idicator statemets for differet categories global, supplier, regioal, busiess area, etc. that feed ito ad from each other The flexibility to express differet idicators from varyig aspects i.e., Busiess Uit, Supplier, Project both separately ad all together Predefied thresholds from a score RAG (Red/Amber/ Gree) is calculated A ERM system is oly as good as its ability to help you gai isight from moitorig curret data ad evaluatig future treds. 9

9 Risk & Cotrols Module Eterprise Reportig Eterprise Reportig provides the visibility, accoutability ad documetatio key stakeholders, like regulators ad boards of directors, require. Eterprise Reportig is a fully fuctioal eterprise-level reportig system that eables admiistrative users to develop high quality reports for the user commuity. Security ad user authorizatios are maitaied withi each report, savig the time it would take to check each reader s security profile ad apply them. With the Eterprise Reportig feature, orgaizatios ca have: Dashboard Reports Easy-to-use ad secure report-buildig capabilities A itegrated data view of all risk ad compliace iformatio ARC Logics Eterprise Reportig ot oly provides a historical sapshot of all reports ru at differet times ad by differet people, but also soud documetatio for regulators. 10

10 Wolters Kluwer Fiacial Services ARC Logics Issues ad Actios Maagemet The Issues ad Actios feature of ARC Logics Risk ad Cotrols is the sigle repository for a orgaizatio s issues ad actios maagemet. It allows a orgaizatio to idetify problem areas, bottleecks ad performace with a sigular view that supports decisio-makig ad soud documetatio. The Issues ad Actios Maagemet feature s sigular view supports decisio-makig ad provides soud documetatio by helpig orgaizatios idetify problem areas, bottleecks ad performace. Testig With ARC Logics Test Programs feature a orgaizatio is able to defie a comprehesive testig approach for a specific requiremet, be it regulatory, iteral or operatioal i ature. It is the Test Program that wraps together the idividual tests providig the results of the testig back to the Busiess Uit with which it is associated deliverig the Busiess Uit the ecessary trasparecy eeded to alig the results withi the cotext of their requiremets. Testig is a fudametal aspect of a ERM system. With ARC Logics itegrated testig feature, each test delivers traceability to the cotrols, assessmets, issues ad actios ad lies of busiess, amog others that provide your orgaizatio with documeted accoutability ad the much eeded crosseterprise view of the results. 11

11 Risk & Cotrols Module Surveys Effective eterprise risk maagemet cosiders the past, preset ad future. With the Surveys feature, orgaizatios are able to sed questioaires to their etire compay or to a specific distributio list equirig about emergig risk, strategy risk or other importat topics relatig to the successful maagemet of risk. The feature supports multiple aswer types ad the advaced fuctioality of coditioal logic, which allows for differet follow-up questios based o a user s aswer to a specific questio. About ARC Logics for Fiacial Services ARC Logics, powered by the regulatory itelligece ad deep fiacial services expertise of Wolters Kluwer Fiacial Services, is a eterprise risk maagemet tool for fiacial services orgaizatios. Its modular compoets measure, moitor ad maage compliace ad operatioal risk, as well as audit. This uique tool combies regulatory itelligece ad actioable fiacial services itelligece with efficiet policy, procedure ad process maagemet for trasparecy ad cotrol. It empowers risk maagemet professioals to make smart decisios with cofidece i a rapidly chagig eviromet. With it, you ca; Implemet effective policies, procedures ad risk limits Coduct testig to moitor compliace ad measure risk Evaluate ad track risks across sectors, product lies ad locatios Provide trasparecy ito risk to seior maagemet ad board members Develop comprehesive iteral cotrols It cotais a stadardized risk maagemet framework ad methodology based o fiacial services best practices that sigificatly reduces the time spet determiig what to measure, ad sigificatly icreases the time available for maagig busiess risks. ARC Logics is a modular itegratio of six key audit, risk ad compliace maagemet compoets: Primary Cotet, Program Maagemet, Policies ad Procedures, Risk ad Cotrols, Fiacial Aalytics ad Audit. Together, the compoets ad modules provide a commo collaborative platform to moitor, measure ad maage compliace ad operatioal risk across all busiess lies ad legal etities. Orgaizatios are able to fulfill immediate eterprise risk maagemet objectives i a targeted, cost-effective maer while cocurretly buildig a holistic, eterprise-wide program. The Survey feature supplemets a orgaizatio s methodology for gatherig additioal iformatio about a existig, emergig or strategic risk i a way that provides accoutability ad reportig. 12

12 Wolters Kluwer Fiacial Services is a comprehesive regulatory compliace ad risk maagemet busiess that helps fiacial orgaizatios maage operatioal, compliace ad fiacial risk ad reportig, ad improve efficiecy ad effectiveess across their eterprise. The orgaizatio s promiet brads iclude: FRSGlobal, ARC Logics for Fiacial Services, PCi, Compliace Resource Network, Bakers Systems, VMP Mortgage Solutios, AppOe, GaisKeeper, Capital Chages, NILS, AutheticWeb ad Uiform Forms. Wolters Kluwer Fiacial Services supports its global customers with more tha 30 offices i 20 coutries ad is a leadig worldwide provider of compliace ad risk maagemet solutios for the fiacial services idustry, servig more tha 15,000 bakig, isurace ad securities customers across the globe. Wolters Kluwer Fiacial Services is part of Wolters Kluwer, a leadig global iformatio services ad publishig compay with aual reveues of (2010) 3.6 billio ($4.7 billio) ad approximately 19,000 employees worldwide. Please visit our website for more iformatio. Wolters Kluwer Fiacial Services 130 Turer Street, Buildig 3, 4th Floor Waltham, MA Copyright 2011 Wolters Kluwer Fiacial Services, Ic. All Rights Reserved. To lear more about ARC Logics go to WoltersKluwerFS.com/ARCLogics.