The workshop is an exercise to help the financial institutions align themselves closer to global regulatory standards and get accurate feedback on how the current regulatory compliance is functioning as the rules of deregulation and how financial institutions can make the most out of the Dodd-Frank repeal or the current dismantling of the regulatory compliance components as we know them today.
The need to step back and review the current regulatory environment and regime is also exacerbated by the fact that global banks are paring back staff tasked with detecting controls and wrongdoing for the first time since the financial crisis, ending a hiring boom that accompanied $321 billion in fines, as technology replaces employees and penalties wane.
Still, need CxO to provide judgment
Compliance and risk management hiring was the only part that was immune to cost pressure since the crisis. Now financial organisations are looking at massively inflated risk, compliance, legal functions and conclude that since the GRC issues are not resolved the answer is not to hire more GRC staff.
However, the hiring spree for compliance to document staff money laundering, market manipulation and terrorist financing processes continue to be in focus as banks move past the worst of their misconduct charges. But the low interest and dwindling revenue necessitate the use of technology to control all compliance costs for all financial institutions.
The panic mode is over
The banking industry is likely to employ fewer people as more technology comes in, and more robotics are used. The efficiency will go up, and the number of individuals working in the industry will go down as banks are also turning to technology providers to crunch data and improve the effectiveness of existing employees.
Therefore to avoid risk and compliance gaps, we suggest a structured approach with downsizing workshops as an exercise to align the processes that are closer to new global regulatory dismantling. The result of the workshops will provide an accurate feedback on how the current regulatory compliance can be re-regulated of the entire mass of regulatory compliance components as we know them today.