Enterprise Risk Management

Measure, Monitor, and Manage Risk Exposure

All financial institutions must engage in some form of Enterprise Risk Management (ERM). In recent years, external factors have fueled a heightened interest in ERM. Industry and government regulatory bodies, as well as investors, have begun to scrutinize companies' risk-management policies and procedures. The Committee of Sponsoring Organizations (COSO) organizes risk into four general groups: strategic, operational, reporting, and compliance.

Unfortunately, compliance management is often handled outside the traditional risk management process in most financial institutions. The likely results are redundancy, overlap and an increased burden on the business, in addition to potential non-compliance with critical regulatory requirements. This leads to a fragmented approach that separates the management of compliance risk from management of other risks.

Integrated Compliance, Operational & Financial Risk Management

The convergence of compliance, operational and financial risk management into an integrated organization of risk frameworks will reduce costs and increase the effectiveness of all risk management activities when implemented on an enterprise-wide scale to maximize ROI and create standardization and consistency.

Why Integrate Compliance, Operational & Financial Risk Management

Reduce the cost of compliance by streamlining the compliance process
Leverage existing activities (compliance, SOX and RCSA, etc) in the operational risk management process
Realize the benefits of ORM
Improve ROI on all risk management expenditures
Further increase ROI through the use of risk technology
Reduce reputational risk and fines by creating early detection of actual/potential operational and financial failures
Enhance identification of systemic problems and prioritization of remediation plans through central control
Increase compliance and risk management transparency across the enterprise and to external stakeholders
Enhance decision support

ARC Logics™, powered by the regulatory intelligence and deep financial services expertise of Wolters Kluwer Financial Services, is an enterprise risk management tool for financial institutions. Its modular components measure, monitor and manage compliance, financial and operational risk, as well as audit.

This unique tool combines regulatory intelligence and actionable financial services intelligence with efficient policy, procedure and process management for transparency and control. It empowers risk management professionals to make smart decisions with confidence in a rapidly changing environment. With it, you can;

Implement effective policies, procedures and risk limits
Conduct testing to monitor compliance and measure risk
Quantify capital-centered risks
Evaluate and track risks across sectors, product lines, and locations
Provide transparency into risk to senior management and board members
Develop comprehensive internal controls

Compliance Risk Management –ARC Logics enables you to focus on the countless number of compliance regulations covered in each of the regulatory agency compliance examinations, including: lending regulations, deposit regulations, privacy regulations, and AML/BSA regulations. Click here to read more.

Operational Risk Management– Use ARC Logics to quantify, measure, and where necessary, remedy risk of loss in business operations. Evaluate and measure adequacy and effectiveness of processes, management practices, efficacy of strategic risks and effectiveness of capital management. Specific risk-related measurements can be tracked, quantified and reported on to monitor risks related to products, policies and procedures. Click here to read more.

Financial Analytics– In 2010, FRSGlobal, a leader of financial regulatory reporting and risk management, was acquired by Wolters Kluwer Financial Services. Use the Financial Analytics Module of ARC Logics, which leverages the FRSGlobal solution, to gain valuable insight into operating model (balance sheet) risks, how this may influence profitability and finally to publish this data in order to meet both regulatory and internal reporting obligations. Click here to read more.

Audit Management - ARC Logics delivers robust audit management via TeamMate- the world leading audit management software that has revolutionized the audit process. TeamMate integrates tightly with ARC Logics to provide greater efficiencies across audit, risk and compliance management processes. Click here to read more.

Control Risk with the Right Partner

Managing risk and managing compliance obligations requires prevention, monitoring, measuring, flexibility and the right partner. We offer proven compliance expertise and risk avoidance strategies that come from over 15 years of successful partnerships with customers and regulators alike. We understand the intricacies of internal operational structures, the demands of regulatory oversight, and the importance of measuring risk factors unique to the financial services industry. Our expertise and technology tools take advantage of industry-wide best practices in compliance, financial and operational risk management and can be leveraged throughout the product development cycle and regulatory compliance management process to help financial institutions implement effective internal controls, remain compliant with regulatory requirements, and effectively manage risk.