Share these talks and lectures with your colleagues
Invite colleaguesPractice paper
Effective reporting can support improved decision-making by directors and executives
Journal of Financial Compliance,
2
(1),
13-21
(2018)
Abstract
The pressure is on the compliance team to deliver the right information in the right way to support decision-makers. Maintaining a robust governance structure is a cornerstone of effective oversight, setting the stage for proper compliance with regulatory requirements and expectations. Priorities are not always in perfect alignment, however. Committees must focus vertically on their missions, but must also communicate horizontally across the organisation. To ensure data quality, risk models must be rigorously governed and validated, but must also be refreshed or even discarded if circumstances dictate. Supervisory requirements must be adhered to and also expected to change. Interactive risk dashboards have become the state of the art in compliance and risk management reporting, and they must be designed with the needs of the bank in mind. Compliance professionals can thrive by monitoring and understanding regulatory change, keeping communications channels open with examiners, and managing the compliance department through metrics. Helping senior management and boards to navigate the various options available to them will provide for a more compliance intelligent senior management and board. This paper discusses how right-sizing management and board reporting is important to an effective governance structure. Strengthening board reporting is not an isolated exercise; it must be part of a broader drive to foster and support compliance-savvy leadership.
Keywords: compliance; risk management; supervision; governance; directors; reporting
The full article is available to subscribers to the journal.
Author's Biography
Ross Marrazzo is a managing director at Treliant, a Washington, DC-based firm that provides financial services companies and consumer-oriented businesses with advisory services to strengthen compliance, risk management and business performance. Marrazzo has more than 33 years of domestic and international experience in the design, oversight and assessment of corporate and regulatory compliance, Bank Secrecy Act/anti-money laundering, sanctions and fraud programmes, and internal controls. His expertise encompasses executive and operating functions and responsibilities within public companies and the financial services industry, including consumer and commercial banking, investment banking, insurance and wealth management. Marrazzo’s affiliations have included GE Capital, First Niagara Financial Group, The Depository Trust & Clearing Corporation and Citigroup. He has extensive experience in remediating regulatory issues and in working with US state and federal regulators. Marrazzo has a broad understanding of foreign regulatory expectations. His US regulatory experience includes work with the Federal Reserve (Fed), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB), US Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), along with state banking, securities and insurance regulators. Marrazzo is a graduate of St. John’s University and is a Certified Fraud Examiner.
