In the wake of the financial crisis, regulators imposed an array of new requirements intended to protect US institutions, financial markets, and consumers. In response, firms produced policies that were often focused on timely implementation with policy accessibility, comprehensibility, and consistency a secondary objective. Although this approach helped to meet tight compliance deadlines, it sometimes led to a vast, disjointed, contradictory, and often poorly understood body of policies. This can put firms at risk because when management and staff cannot understand or effectively implement a policy framework, risk management programs will suffer.
This A closer look outlines how firms can start to evaluate whether their current body of policies is: (1) aligned and collectively coherent; (2) understandable, intuitive, and accessible to a broad audience; (3) consistent with “better practice” governance standards; (4) lean; and (5) managed using technology that is fit for purpose.
A publication of PwC's financial services regulatory practice
Financial Services Leader, PwC US