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Following the financial crisis and exasperated by head-lined breaches of compliance, regulated firms are now subject to a plethora of regulations as governments seek to regulate as a means of protecting individual economies. As a result, firms now face the biggest challenge yet … Regulatory Risk, being the risk of non-compliance and the penalties and reputational risk that follow. ComplianceASSESSOR is a powerful web-based compliance and audit application accommodating an unlimited library of multi-jurisdictional prudential and non-prudential regulations mapped to internal policies & procedures. Assessments, action plans, reviews and independent approval together with dashboards, heat maps, alerts and reports ensure that appropriate action is taken to determine, achieve and maintain compliance.

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Designed to accommodate the compliance requirements of simple and complex,

domestic and cross-border organisations… at regulation level!

Library

A central repository of prudential and non-prudential regulatory ‘books’ applicable to the organisation with no limit as to the books that may be chosen: FSA Prudential Sourcebooks, European Directives, US and Asian regulations as well as AML, KYC, TCF,

Data Protection Act, Consumer Credit Act and even Health & Safety law.

New books or amended versions may be added to the library subsequently, the new or amended regulations being highlighted for review and / or possible assessment, thereby avoiding inadvertent breaches in compliance.

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Off the shelf, plug & play facilitates same day set-up, yet can be tailored to accommodate specific requirements

Ability to load multi-jurisdictional regulations to address cross border requirements

Searchable, centralised library provides ‘one stop shopping’ when seeking applicable regulations

New and amended regulations and amended policies and procedures identified for review thereby ensuring that new regulations and changes are not overlooked

Policies & procedures mapped to individual regulations to evidence compliance … and instantly retrievable together with assessment data in response to regulatory demands and enquiries

Identified compliance deficiencies addressed through action plans supported by appropriate documentation

Independent review and approval of assessments enforces the ‘4-eyes’ approach to compliance and accommodates the ‘three lines of defence’

Executive sign off required for high risk regulations in terms of repercussion of non-compliance

Comprehensive dashboard provides an overview at company, division and business unit level while a heat map identifies deficiencies in compliance and the degree of impact

Email alerts and reminders ensure the timely processing of assessments, action plans and approvals

Compliance reports and tailor-made audit reports against individual assessments produced effortlessly

All actions fully audited and archived to further evidence and support compliance

View and assess proposed regulations in CP and DP papers to determine state of compliance and identify deficiencies

Auditors and Compliance officers can view all regulations, assessments, reviews and approvals, policies & procedures and even old audit reports … even on an iPad!

Library Identi�cation of the regulations to be assessed

Time beforereassessment

Assessment to determine state of compliance

Action plan(s) to address de�ciencies

Executive approval required for high risk regulations

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Identi�cation of evidential documentation

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Assessmentreview

Approval

Executive and audit dashboards and reporting

Archivedaudit data

AUDIT /COMPLIANCE

ComplianceASSESSOR provides a centralised, secure and dynamic means of assessing,

evidencing and recording compliance against an unlimited library of regulations

In addition to the prudential and non-prudential regulations (including internal regulations), the library may be further loaded with corporate governance, staff training material and even regulatory consultation and discussion papers. Each category of book has its own security arrangements thereby enabling staff training material to be available firm-wide whilst consultation and discussion papers may be viewed by selective officers or made available for assessment in order to determine the degree of current compliance with potentially new regulatory requirements.

Assessments

The assessment process – to determine and evidence the degree of compliance – is at the core of the system, each assessment being applicable to one or more regulations.

Depending upon the nature of any deficiency in compliance, one or more action plans may be established, each one capable of being evidenced by appropriate (and retrievable) documentation.

Mapping

Part of the assessment process is to map the relevant regulations to the appropriate policies and / or procedures, thereby providing the primary ‘evidence of compliance’ on the assumption that the policies and / or procedures are complied with, in practice. Clearly, in the absence of appropriate policies and / or procedures or an inability to comply in practice, one or more action plans may be established to address such deficiencies.

In addition to new and amended regulations being highlighted for review, the hyperlinks to policies and procedures are monitored for changes, any invalid hyperlink signifying an amended policy or procedure and therefore a requirement to review the amended document and related regulation(s), assuming that such documents are subject to version control.

The ability to quickly identify and print evidential documentation provides an efficient retrieval mechanism when responding to regulatory demands and enquiries.

Review, approve and assessment sign-off

Assessments must be reviewed before being independently approved, reinforcing the ‘4-eyes’ approach and lending itself to the ‘three lines of defence’, where appropriate. This process also applies when determining whether a book, chapter or regulation is deemed ‘not applicable’ thereby ensuring that regulations are not inadvertently missed.

Regulations deemed ‘high risk’ in terms of the repercussions of non-compliance (e.g. reputational damage, financial penalties etc.) must be signed off by a senior manager or executive. A tolerance level that determines which high risk regulations should be signed off may be amended to suit individual organisations.

Automated alerts and scheduler

Automatic notification and reminders are generated to ensure that completed assessments are reviewed and subsequently approved (or otherwise) in a timely manner. Likewise, designated officers are advised a definable number of days in advance of the need to assess regulations associated with an assessment that has ‘expired’ – the default being one year from the date of establishment of the assessment – at which time the associated regulations again become ready for assessment.

Outstanding assessments also appear on the dashboard to alert senior managers, executives and Internal audit to this fact.

Audit

Authorised officers (Audit & Compliance) have the ability to input comments on assessments, action plans and reviews, the comments being either hidden or revealed to non-audit / compliance officers.

Advanced screen technology permits an auditor to view all data appertaining to assessments together with any and all regulations, policies, procedures and audit papers during an audit … even on an iPad!

The auditor also has the ability to search against the library and generate a customised audit report or export the data to an audit database during an audit, even on an iPad.

Dashboard

Statistical information and assessment data is fed to a multi-functional dashboard that highlights the state of compliance at group, company, division and business unit levels whilst a heat map identifies deficiencies in compliance and high risk business areas. Graphs and tables display a variety of information including the maturity profile of action plans, thereby enabling senior management to monitor and manage compliance throughout the organisation.

Security matrix

Comprehensive security arrangements allow a user to be an assessor of regulations applicable to one business unit whilst being an approver for assessed regulations in another. Integrity checks ensure amongst other checks that an approver cannot approve their own assessment.

The matrix extends to prudential and non-prudential regulations and regulations relating to corporate governance whilst a simpler matrix governs access to staff training materials and consultative and discussion papers – thereby enabling selective access and circulation of books.

ComplianceASSESSOR provides a centralised, secure and dynamic means of assessing,

evidencing and recording compliance against an unlimited library of regulations

For more information:

visit our website: www.lombardrisk.com

email: info@lombardrisk.com

www.lombardrisk.com

Lombard Risk – www.lombardrisk.comLombard Risk is a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions – enabling firms in the financial services industry to significantly improve their approach to managing the risk in their businesses.

Founded in 1989 and headquartered in London, Lombard Risk has offices in New York and New Jersey in the US; Hong Kong, Mumbai, Shanghai, Singapore and Tokyo in Asia Pacific, and service centres in Atlanta, Cape Town, Luxembourg and Miami.

Our clients include banking businesses – over 30 of the world’s ‘Top 50’ financial institutions – almost half of the banks operating in the UK, as well as investment firms, asset managers, hedge funds, fund administrators, insurance firms and large corporations worldwide.

Managing collateralised trading – Enabling regulatory compliance with clarity and confidence in the ‘new world’

The Lombard Risk solution suite is developed and supported by an extensive team of risk, regulatory and financial experts and includes:

COLLINE® – collateral management and clearing. State-of-the-art, web-based solution designed by experienced business practitioners for end-to-end, cross-product (OTC derivatives, repo and sec lending) collateral management and clearing. COLLINE provides a consolidated solution for mitigating exposure risk while satisfying the growing demand for multiple/global entities, cross-product margining, clearing, optimisation, master netting, MIS reporting, dispute management and electronic messaging.

REFORM™ – pre and post trade solutions and transactional reporting for the derivatives reform initiatives such as Dodd-Frank and EMIR. Other modules of the REFORM engine provide connectivity and message transformation, for example enabling COLLINE to connect to exchanges and to messaging systems.

REPORTER – global regulatory reporting. Fully scalable regulatory compliance solution for branch or head office, with global coverage. Fully supports key supervisory computations and integrates with LISA for stress testing and Reporter MIS for ad-hoc and management reporting. Straightforward and streamlined integration to multiple source systems; built in reconciliation and trends and variance reports.

REG-Reporter® – US and Canadian regulatory reporting. A regulatory solution addressing financial reporting requirements by automating compliance with the mandated reports to all US regulatory agencies and the Office for the Superintendent of Financial Institutions (OSFI), Canada.

LISA® – scenario analysis and stress testing. LISA satisfies the latest liquidity risk management requirements and supports growing regulatory demands for timely and reliable information.

Reporter MIS – business and management reporting. A flexible and easy-to-use module for reporting across the Lombard Risk product range AND with external sources. Provides valuable BI by combining risk and regulatory information in reports or on-screen dashboards, enabling well-informed business decisions to be made with confidence.

The Lombard Risk software solution suite also includes OBERON® trade capture and valuation and FIRMAMENT® credit and equity valuation.