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Building a Regulatory Ready Operating Model

  • Design the End-to-End Process Landscape

    One of the most difficult pieces of risk and compliance management is the speed of change. A successful compliance leader needs to be able to manage and report on processes in near real time. This is made even more difficult by the continuous onslaught of new regulations and compliance requirements. Additionally, the “traditional approach” for defining controls for high risk processes is exceedingly labor intensive and doesn’t facilitate the creation of deep insight into residual risk and critical process breakpoints. To accelerate compliance and facilitate quick adoption of new regulations, it is critical for an organization to be able to design, visualize and monitor the end-to-end process landscape and how it relates to regulatory requirements. Mavim helps address these challenges by directly mapping regulatory requirements, risks, and controls to business processes. This creates a flexible architecture that visualizes the interdependencies as well as the gaps in critical controls and modulates easily with the addition of new regulations. Additionally, Mavim facilitates the clear definition of roles and responsibilities to ensure straightforward communication, collaboration and benchmarking.

  • Determine Key Risk Indicators (KRIs)

    Determine and document objective and quantitative KRIs (Key Risk Indicators) in the area where the process is likely to run off course and create the likelihood of noncompliance. By focusing on a “breakpoint analysis” and attaching a KRI, it is possible for an organization to create more robust insight into residual risk. In addition, this process-focused approach minimizes the number of controls which need to be tested. While it may seem counterintuitive to create less controls, this approach allows for better resource allocation and accelerated remediation. According to McKinsey less controls is not necessarily a bad thing as “it is not unusual to see critical audit findings in areas where the majority of controls have been deemed effective.” The quality of controls is more important than the quantity.
  • Monitor & Predict “Break-Points”

    After determining KRIs and attaching them to “breakpoints”, tag the KRIs in Mavim Process Intelligence in order to receive (near) real-time insight into breaches as they happen. This allows for accelerated remediation and the elevation of breaches to the necessary level within the organization. Based on a root-cause analysis of historical data (of what behavior led to the breach of protocol), Mavim Process Intelligence helps organizations predict when and how a potential risk will happen, which allows for the preemptive allocation of resources. Mavim Process Intelligence creates insight into which specific combinations of transactions previously led to a serious breach, and then, by creating business rules on those combinations, alerts can be sent out as the breach is occurring.

  • Strengthen Risk Culture

    To establish a more effective risk culture, it is necessary to create broader consciousness about the standard operating procedures and the impact that deviation has. But a strong risk culture requires more than communication – it also requires continuous assessment. Mavim helps strengthen an organization’s risk culture by offering a platform for communication and collaboration, as well as for the administration of risk assessments. By assigning risk self-assessments to given roles, compliance officers can leverage Mavim to gain insight into the effectiveness of controls and to increase the level of consciousness across the organization. Additionally, Mavim makes it possible to benchmark roles against each other, which makes it possible to make predictions about deviant behavior.
  • Communicate, Report, and (Continuously) Improve

    Regulatory-ready organizations manage regulatory change as an integrated part of daily operations. As such, flurries of episodic activity surrounding deadlines (for example - May 25th 2018 for GDPR) indicate a lack of readiness. Regulatory compliance has no end point, but flows continuously in line with operations and changes as new legislation is passed.

    Regulatory readiness demands leading reporting capabilities. Mavim can generate detailed reports and advanced compliance dashboards that illustrate the relationship between risks, controls, laws & regulations, and business processes. This gives a risk controller the ability to generate a report detailing all risks, the controls on those risks and the impact that it could have on an organization. Publication via SharePoint/Office365 allows for the communication of the new processes, risks, controls, connected roles and systems to end-users. What is more, stakeholders will be able to monitor progress and verify changes made to the existing processes in the familiar Microsoft Office environment. This helps create organization-wide awareness and ensures end-user support and adoption of the desired transformation.

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