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These days, business is not only increasingly global, it is exceedingly complex and rife with risky regulatory compliance challenges. For example, as a consequence of the global financial industry crisis, banks are scrambling to keep pace with a flurry of new regulatory mandates, from increased capital requirements through more stringent information security measures on credit card processing. In fact, since 2008, 120 regulatory changes have been announced by 15 federal agencies for credit unions, and 921 compliance changes for U.S. banks. Add to this the 848-page “Dodd Frank Wall Street Reform and Consumer Protection Act” with its 400 rules and you have a regulatory compliance nightmare. It all adds up to compliance costs for U.S banks that are estimated to be $50 billion, or roughly 12% of annual operating expenses by Maine Banker.

It’s no different in healthcare amid ongoing reforms aimed at streamlining cost. Moreover, new IDC-10 healthcare codes for classifying medical conditions and treatments has the entire industry in a flux, assessing various and sundry compliance options. For example, the U.S. Department of Health and Human Services (HHS) puts the conversion from ICD-9 to ICD-10 at a price tag of $1.64 billion, including $357 million for staff training, $572 million for losses in productivity and $713 million for system changes.

Whatever the drivers, meeting compliance challenges requires a cost-effective, disciplined, and auditable response from the business. Organizations need clear governance frameworks for everything from preparation to gap analysis and execution. As a result:

  • High-performing risk management organizations are embedding analytics into management processes. For example, they are developing actionable dashboards for management to better inform compliance decision making.
  • Leading organizations are also cultivating risk technology’s “human element” through training and other measures to help make findings from risk analytics actionable and insightful.
  • Most organizations are investing in staff and skills to elevate the risk management function. In fact, risk is one of the few functions where most reporting organizations steadfastly have refused to cut staffing.


As business needs and regulatory priorities change, compliance becomes not a one-time event, but an ongoing process requiring constant reexamination and reinvention. The upside is that the improved reporting and governance for compliance can also deliver business benefits such as lower costs, faster time to market and improved customer service.

  • Our Latest Thinking

The Attorney Scorecard: Accelerating the Foreclosure Process while Improving Compliance
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Remaking IT for New U.S. Mortgage Rule Compliance
To benefit from the improved housing market, lenders need to play offense by finding new ways to efficiently comply with regulations, tighten controls over the lending process and better engage with customers.
Over-the Counter (OTC) Derivatives in Asia: The Impact of Regulations
While the U.S. has Dodd-Frank and the EU has EMIR regulations to guide over-the-counter derivatives trading, the Asia Pacific region is far more fragmented for interest rates swaps (IRS), credit defaults swaps (CDS) and other OTC transactions. Harmonizing requirements will have to cover futurization of swaps, margining and collateral requirements, electronic trading platforms, central counterparties and much else - and will impact many front- and back-office functions including legal, treasury, reporting, IT, risk and compliance and operations.
Coordinating Security Response and Crisis Management Planning
Security or emergency response for businesses must be tactically and strategically integrated with disaster recovery, with a plan for root cause analysis and next steps coordinated by the CIO and chief information security officer in conjunction with business units.
Enterprise Liquidity Risk: Overcoming the challenges
Given the vastness of today's global financial system and the volume and complexity of data that financial institutions must deal with every day, firms must learn how to proactively manage liquidity risk and avoid the pitfalls that sparked past financial crises. Predictive analytics and advanced risk-monitoring systems are among the tools available to help these institutions overcome the challenges of doing business in an increasingly
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Challenges for Foreign Banks Entering India Open New Opportunities for Consulting Firms
Foreign banks looking to do business in India must deal with India's strict regulatory, technological and social requirements. IT and business consulting firms that offer pertinent, end-to-end solutions at competitive prices will have an edge over "product-specific" providers.
PBM Compliance with Medicare Part D
A discussion of the role and reporting requirements of PBMs participating in Medicare Part D plans.
Volcker Rule Compliance: Preparing for the Long Haul
Uncertainties over the requirements of the Volcker Rule make it difficult for banks to balance the cost of compliance with the ability to drive revenue growth.
Euro Crisis: What Next?
The Euro crisis, regardless of its eventual outcome, poses complex challenges for the banking and financial services industry.