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The Risk in Vendor Risk Management

As we navigate the fallout of the worst financial crisis since the Great Depression, focus on the rapidly changing threats to information security, radically improve compliance infrastructures to support regulatory imperatives and work out new and sustainable business models, it almost seems unfair to throw another area of concern at banks. Unfortunately, for those who would like Read More

By |2020-05-27T18:01:08-05:00February 5th, 2013|Comments Off on The Risk in Vendor Risk Management

Turning Inside Out with Outsourcing

Outsourcing is no stranger to big bank IT chiefs, who long ago shifted from the view that they needed to build important technology systems in-house. The recent financial crisis, however, appears to have accelerated the trend as financial institutions face ever-greater pressure to keep up with technological advances. “The market pressures to be more nimble and to Read More

By |2020-05-27T18:01:10-05:00November 26th, 2012|Comments Off on Turning Inside Out with Outsourcing

Managing Workforce Compliance Risk

Your company may not be fully complying with the wage and hour regulations of the U.S. Department of Labor (DOL) and you may not even know it. In recent years, the DOL has increased its enforcement of these regulations, which has left financial services companies subject to heightened financial and reputational risk. A particular challenge is properly Read More

By |2020-05-27T18:01:12-05:00August 15th, 2012|Comments Off on Managing Workforce Compliance Risk

Can Innovation Help Reduce Payments Risk?

The advent of mobile and online banking, so-called “alternative” payment applications and the rapid increase of nonbanks in the retail payments environment have clearly revolutionized the payments system but those changes have raised a key question: Does the rapid disaggregation of the payments value chain have to spell gloom and doom from a fraud-and-security perspective? Or, to Read More

By |2020-05-27T18:01:13-05:00August 7th, 2012|Comments Off on Can Innovation Help Reduce Payments Risk?

Keeping Track of Your Vendors

Concepts that start out simply rarely end that way, which you can see in the evolution of terminology. Take the relatively common practice of contracting with another party to provide goods or services. What began as “contract services” has morphed over time into: outsourcing, supply chain management, logistics, third-part service providers, supplier risk management, vendor performance management Read More

By |2020-05-27T18:01:15-05:00May 22nd, 2012|Comments Off on Keeping Track of Your Vendors

Fighting Payments Fraud the Hybrid Way

Fraud is endemic to the global payments system and the tools financial institutions have historically used to fight it are marginal at best. Instead, a hybrid approach using multiple analytic methods including link or network analysis to identify suspicious behavior at the transaction, account, customer and network levels provides the greatest return for an institution’s investment. This Read More

By |2020-05-27T18:01:15-05:00May 9th, 2012|Comments Off on Fighting Payments Fraud the Hybrid Way

Deterring Wire Transfer Fraud

As banks continue to make large expenditures on technology for anti-money laundering (AML) compliance, they would be well-advised to continue employing traditional due diligence and following long-standing and basic Know Your Customer procedures. In the long run, a strong balance of high-tech savvy and common sense diligence can deter and detect criminals who are continually developing new Read More

By |2020-05-27T18:01:15-05:00April 18th, 2012|Comments Off on Deterring Wire Transfer Fraud

Technological Response to Regulatory Challenges

With Dodd-Frank rulemaking slowing to a crawl (most recently a delay in finalizing the Volcker Rule) and ongoing debate in the European Union about where to go next with regulations in the wake of continued financial unrest, the only thing certain about future regulations is that there will be more and they will be increasingly stringent. Financial Read More

By |2020-05-27T18:01:16-05:00April 17th, 2012|Comments Off on Technological Response to Regulatory Challenges

Stress Tests: What About the Other 7,000?

So far, so good. Fifteen of the 19 largest financial institutions passed the latest round of Federal Reserve stress tests, opening the door for increased dividends and stock buybacks. It is indeed reassuring that these banks have built fortress-like balance sheets that can withstand potentially severe stress, including the dark-but-possible scenario of 13% unemployment, negative Gross Domestic Read More

By |2020-05-27T18:01:16-05:00March 30th, 2012|Comments Off on Stress Tests: What About the Other 7,000?

Risk Assessment for Mortgage Servicers

As we move into the height of the 2012 presidential election cycle, issues of consumer protection in the financial services industry are front and center on the political agenda, as can be seen in the recent controversy involving the president’s recess appointment of Richard Cordray as director of the Consumer Financial Protection Bureau (CFPB). Central to the Read More

By |2020-05-27T18:01:18-05:00January 27th, 2012|Comments Off on Risk Assessment for Mortgage Servicers

Best Practices for Compliance Risk Assessment

Editor's Note: For an update to the article, read the 2018 article: Today's best practices for compliance risk assessment.Putting together a compliance risk assessment is pretty much standard procedure by now. Although risk assessment methodology in general has been around for quite a while, its prominence in the compliance field is a fairly recent phenomenon. Formulating the Read More

By |2020-05-27T18:01:27-05:00December 27th, 2011|Comments Off on Best Practices for Compliance Risk Assessment

Strengthening the Risk Management Culture

With Dodd-Frank financial reform legislation more than 2,300 pages long, it will take some time to understand its full impact on financial institutions. In the interim, there are steps companies can take to deepen their risk management culture and ensure they’re building a strong foundation to effectively execute in the “new normal.” Improving and strengthening risk management Read More

By |2020-05-27T18:01:32-05:00May 6th, 2011|Comments Off on Strengthening the Risk Management Culture

The ‘Third-Party Element’ in Mobile Fraud

The threat will come. Bank of America Corp.’s Donna Turner, senior vice president, global fraud policy executive, repeated this phrase three times, like a mantra, during her presentation on mobile fraud at last month’s BAI Payments Connect conference. And all the other panelists agreed: mobile fraud is not yet a serious problem for the financial services industry Read More

By |2020-05-27T18:01:32-05:00April 13th, 2011|Comments Off on The ‘Third-Party Element’ in Mobile Fraud