Next-Generation Network and Vendor Management: mitigating operational risk in relationship networks
The complex network of relationships that financial institutions have built with multiple partners has created a huge operational burden, resulting in significant operational risk as well as financial and compliance risk.
Dating back decades, many of these relationships are now managed as a separate business function, costing organisations millions of dollars. Add in regulatory obligations, and a firm’s compliance measures are often fragmented and rapidly deployed, resulting in their inability to maintain a plethora of systems and solutions that do not communicate with each other. Piecemeal technological solutions coupled with compliance responsibility dedicated to only one entity of the business has led to a constrained ability to respond to developing market circumstances.
The good news is, a top-down, holistic approach can turn regulatory compliance into a routine undertaking, allowing banks to focus on their primary goals. Full digitalisation can be used to build a next-generation network management system that minimises the compliance burden and maximises competitive efficiency.
Download this whitepaper to learn more about:
- The challenges and risks associated with the complex networks of relationships financial institutions have built with other financial institutions and service providers
- How a tactical approach to regulatory obligations inflamed the operational burden
- The barriers to progress
- The key measures financial institutions need to implement in addressing these issues
- Best practice approaches and opportunities to be seized from holistic vendor management