Banks and insurers are caught between two fires. On the one hand, there is the pressure to improve their cost/income ratios while making their digital transformation a success. On the other hand, they need to patch up ever-expanding internal control frameworks to bring them in line with increasingly demanding regulatory requirements. The result: high overhead costs, and stifled innovation. It’s time to make internal controls and frameworks more flexible, more transparent and more cost effective.
For a while now, risk and compliance professionals in the banking and insurance industry have seen the writing on the wall about the challenges facing their profession today. From implementing ever more stringent control requirement in legacy systems, to having to manage error-prone administrative control chores. From managing gaps in the three lines model, to having to improve cost/income ratios. We live, as they say, in interesting times.