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August, 26, 2014

Cognizant Positioned as a Leader in IDC MarketScape: Worldwide Business Analytics for Business Process Outsourcing

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MANAGING COMPLIANCE

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.

AN ONGOING PROCESS

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 U.S. Federal Reserve's Rules for FBOs and the Implications for IT Operations and Systems
The U.S. Federal Reserve's recent rules allow Foreign Banking Organizations (FBOs) to apply the enhanced prudential standards required by the Dodd-Frank Act -- a development that will have widespread effects on these institutions' IT operations and systems.
OFAC Name Matching and False-Positive Reduction Techniques
To meet the Office of Foreign Assets Control rules for combating money laundering, financial institutions need to take stock of new software tools that automate the process of identifying possible illegal activities and reduce the probability of unwarranted red flags.
E-invoicing in Corporate Banking: A European Perspective
The prolonged economic crisis that has spread across Europe is forcing banks' decision makers to reduce costs, streamline operations and consider new, standards-based transaction models -- all while safeguarding their working capital. E-invoicing is an increasingly popular option for commercial and corporate banks looking to drive more efficiencies across their financial supply chain -- powered by the cloud and supported by a trusted third party.
Embracing the Cloud to Make Risk Reporting More Efficient
How banks' risk reporting benefits with the increasing adoption of cloud computing technologies such as infrastructure as a service (IaaS) and software as a service (SaaS): scalability, data integrity, analytics and more.
The Dodd-Frank Act and Its Impact on U.S. Remittances
Worldwide, remittance flows are expected to increase to US$615 billion during 2014. Although the United States is among the biggest destination countries for international remittances, U.S. regulators have only indirectly addressed this issue. The Dodd-Frank Act significantly changes this situation by maintaining direct regulation of the industry for the first time. Section 1073 of the Act amends the current Electronic Fun Transfer Act. Compliance will require time, effort, and in many cases a range of new measures for banks and related financial institutions.
Accelerating Bio-Pharma's Marketing Transformation
Here's what bio-pharma organizations need to know when transforming the promotional material review and approval process from a transactional requirement to a competitive advantage.
A Statistical/Mathematical Approach to Enhanced Loan Modification Targeting
We demonstrate, with a transition matrix, how real estate prices as well as "trigger events" can affect the likelihood of homeowners re-defaulting in loan modification programs.
Why Risk Matters: Deriving Profit by Knowing the Unknown
Risk management is a critical activity for capturing profits; in particular, unknown risks - or "unknown unknowns" - pose the greatest threat for unidentified losses. We offer a template for uncovering such risks via a Q&A process.
Application Vulnerability: Trend Analysis and Correlation of Coding Patterns Across Industries
Organizations in virtually every industry are increasingly susceptible to online threats and intrusions, due in large part to more sophisticated hacking methods. For application architects and developers, as well as regulators, mitigating the effects of these assaults is critical. During 2012 and 2013, Cognizant analyzed and evaluated Web applications in nine vertical industries to determine their levels of vulnerability and make recommendations for lessening the impact of online attacks.
Challenged by Regulation: The Changing IT-Sourcing Landscape of Nordic Banking
Driven by regulatory tightening and expanding customer expectations, Nordic banks, especially smaller ones, are increasingly pressured to employ larger, more fully featured IT service providers that can harmonize global and pan‑European regulations and offer a wider palette of IT capabilities.
 

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