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The Holistic Approach to Regulatory Change

The rise of digital business is bringing more interconnected risks to every organization. The digital economy is simultaneously increasing the magnitude of new business opportunities while increasing the difficulty of getting it right. The business of the future requires an integrated, comprehensive view of risk to drive better strategic decision-making at a pace that is agile enough to meet the needs of the executive team.

Most organizations manage their risk and compliance in isolated silos. Yet, the ever-growing regulatory environment and increased focus on accountability makes it imperative to manage risk and compliance initiatives in an integrated fashion. To understand the full scope of risk, organizations need a holistic view across all business units, key partners and risk & compliance functions, as well as product & service lines. This type of approach requires the collaboration of multiple stakeholders (including IT, legal, finance, risk, compliance, audit, strategy and business unit leaders) in pursuit of greater risk awareness, accountability and, ultimately, better decision-making capabilities.

However, capturing this value requires a new level of operations planning that must include more robust and effective processes and technology in the back office delivered through an integrated operating model. Industry analysts from Gartner and McKinsey have both recently come out with a bold statement that a Business Operating System (Gartner) or a Next Generation Operating Model (McKinsey) holds the key to success. Gartner has even gone so far as to predict that organizations who utilize a business operating system will turn the 70% failure rate of transformation into a 70% success rate.

According to Gartner, a business operating system can be understood as a GPS for an organization. A business operating system has many applications that range from enterprise performance and cost optimization to enterprise risk management, but all applications are intended to support organizations in their decision-making processes. By creating digital version of the runtime operational environment, compliance leaders can leaders ensure compliance and controls, engage in scenario planning, and minimize the risk of the organization’s chosen path. Mavim offers software that facilitates the creation of a dynamic, virtual representation of an organization in its operational context. Every asset that falls within the context of an organization (processes, technology, architecture, infrastructure, risks, controls, regulations, business capabilities, strategies, roles, responsibilities, products, services, distribution channels) can be connected, reported upon and visualized. Bi-directional functionality facilitates change making to both the live and virtual environments in order to keep the two worlds in sync. This helps compliance leaders assess the impact of change in a controlled environment.

The data visualized in Mavim provides insight into an organization’s current state, which can be continuously infused with new information to give feedback on how the organization is responding to changes, deploying resources, and delivering customer value. This insight aids decision making and helps accelerate the transformation into an adaptive enterprise that is prepared to continuously adjust to emergent, dynamic market conditions. ?

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