Risk Management | Compliance Risk management

Compliance Risk Management

Compliance risk management is an integral component of ERM. Its goal is to minimize the effects of violation of or non-conformance with the many rules that govern how financial service business activities are properly supposed to be conducted. Financial institutions need to implement for a strong and effective, near real-time compliance risk management and technology as one key element as modern financial operations are becoming increasingly complex.

Integrating compliance and risk management may increase effectiveness, efficiency and reduce costs. At the same time, compliance becomes more effective as organizations view requirements across the enterprise and assess risks more accurately. The cost savings and improved risk management may provide a competitive advantage. As markets become more risky, it may provide the most important basis for competitive success.

ARC Logics

ARC Logics is an ERM measurement, monitoring and management tool specifically for Financial Services. It contains both a compliance risk and an operational risk module.

The Compliance Risk Module combines the strong regulatory framework with organization controls to create a comprehensive platform for managing enterprise compliance risk. 

It allows you to answer three important questions:

"Did the controls we have in place work?"
"Are the defined controls being done now?"
'"What is the likelihood we’ll have a problem in the future?"

As an integrated, structured workflow tool, ARC Logics combines business function and controls, compliance regulations and risks, issue and error management, as well as reporting that supports ongoing compliance management decisions. It ensures structure and efficiency by automating key manual compliance processes that typically require input and action from many employees. With rules customized for your business, ARC Logics ensures a consistent, enterprise-wide view of Compliance Risk across business lines and legal entities.

ARC Logics incorporates the numerous compliance regulations covered in each of the regulatory agency compliance examinations, including: lending regulations, deposit regulations, privacy regulations, and AML/BSA regulations and is compatible with the Basel II and Sarbanes Oxley requirements endorsed by the Federal Reserve.

Key features include:

• Risk Assessments
• Key Control Certification
• Incident Reporting
• Issue Management (internal and exam related)
• Compliance Testing Management
• Enterprise Reporting

The Compliance Risk Module resides on the ARC Logics platform with the Operational Risk Module and seamless integrates with CCH Teammate for more expansive audit capabilities.