The 2014: Living in the Shadow of Regulation?
Whitepaper | Basic Approach
Essentially banks should aim to marry strategy, governance and enterprise performance management. To do this successfully would require banks to conduct detailed assessment reviews across a range of strategic dimensions that would underpin the development of an effective strategy going forward.
We advise a 4-stage strategy transformation approach that would help banks avoid running duplicating programmes and mitigate the cost of reform:
extended reporting structures and new know your customer (KYC) processes and will require a significant level of investment and resources for both U.S. and non-U.S. banks.
Even organisations that choose only to meet basic compliance standards will have their work cut out. The desire is to create an approach which also returns tangible benefit to the organisation beyond the basics of overcoming these regulatory hurdles.
A comprehensive business assessment will help to align priorities; once identified these accountabilities should be embedded in the accountabilities of each affected department leader’s “Primary Scorecard”. This will assure the alignment to enterprise strategies (“The Senior Scorecard”), using the “High Impact Management” Enterprise Governance Framework.
There will be overlapping challenges to implementations, and demands will call for cross-functional project teams; For example, Dodd-Frank, Basel III, MiFID II, EMIR and CRD IV all have certain requirements or elements that will result in changes to the affected institutions.
Bigham Consulting’s framework for implementing transformation strategy will help organisations rapidly get to grips with the challenges they face and formulate strategies that support both shareholder needs and enterprise governance.