Menu Search

Code Halos

A Playbook for Managing at the Crossroads


Innovation Beyond The Four Walls



July, 23, 2014

NAPHSIS and Cognizant Team Up to Transform Electronic Verification of Vital Records for Better Protection of Individual Identity


The Cognizant Difference

We use analytics cookies to help us improve your experience of this site. By continuing to use this site, you are agreeing to our use of cookies. For information on the cookies we use and how to manage them, please see our Cookie Policy.


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

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.
A Statistical Framework for Cluster Health Assessment and Its Application in Anti‑Money‑Laundering Systems
How cluster or peer-group analysis can be applied - with the correct segmentation variables - to anti‑money‑laundering systems, based on a statistical methodology that provides a quantitative assessment of cluster health.
The Attorney Scorecard: Accelerating the Foreclosure Process while Improving Compliance
By integrating a scorecard system in their internal operations, mortgage servicers can monitor and assess attorneys' performance in processing foreclosures to help them manage cost and time.
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
connected world.

CONTACT US Contact Cognizant

  • Send a message

    Select a Region*
    Select Inquiry Type*

  • Contact Cognizant Careers

    • Tel: Label
    • Fax: Label
    • Email: Label

    If you are interested in an opportunity with Cognizant, please visit our Careers page or visit the Cognizant Careers FAQs.