Updating 25,000 Risk Statutes for a Fortune 50 Investment Bank: A Comprehensive Project

 

 

Updating 25,000 Risk Statutes for a Fortune 50 Investment Bank: A Comprehensive Project

 

 

Challenge

The Head of Risk Management at a leading global bank faced a significant challenge: refreshing their vast risk inventory. Many regulations within the inventory were outdated or not aligned with the latest laws in various states and international jurisdictions. Given the scale of the task, updating and risk-mapping an inventory of 25,000 regulations across 30 global jurisdictions required a substantial effort that the in-house team could not handle alone.

 

Approach

To tackle this challenge, the bank enlisted the expertise of Axiom's team, known for their proficiency in similar large-scale projects. Here's how the Axiom team approached the project:

 

1. Initial Assessment and Risk Mapping:

   • The project began with a thorough assessment of the bank’s existing regulations inventory. Using the client’s Content Management System (CMS), the team examined all statutory and written obligations.
   • The goal was to map both new and existing obligations to the correct risk statutes.
     

      

2. Focus on Key Regions:

   • The first phase focused on regulations across major regions: the US, UK, EU, and much of the Asia-Pacific (APAC) region.
   • Special attention was given to the New York Department of Financial Services (DFS) regulations. The team reviewed the entire set of DFS regulations and added 800 previously unaddressed statutes, covering emerging areas like privacy and cybersecurity.
     

      

     
     
     

3. Detailed Analysis and Integration:

   • Axiom’s team worked meticulously to ensure each regulation was accurately risk-mapped.
   • They standardized input formats to maintain consistency throughout the inventory.
     

      

4. Communication and Coordination:

   • The team lead acted as the single point of contact for the client, streamlining communication and reducing management overhead.
   • Regular updates were provided to keep the client informed about the project's progress in real time.
     

      

     
     
     

Impact

The meticulous approach adopted by Axiom yielded impressive results:

1. Efficiency and Cost Savings:

   • The project was completed below budget and a month ahead of schedule.
   • This efficiency allowed the team to take on additional tasks, such as re-cataloging the risk inventory specific to Hong Kong.
     

      

2. Long-Term Compliance:

   • The updated inventory helped the bank ensure long-term compliance across 30 global jurisdictions.
   • The project did not increase the workload for the in-house legal team, as Axiom’s team managed the bulk of the heavy lifting.
     

      

     
     
     

3. Enhanced Risk Management:

   • By integrating the latest statutes and focusing on new areas of regulation, the bank’s risk management framework became more robust and up-to-date.
   • The standardized inputs and comprehensive risk mapping provided a clear, organized view of the bank’s regulatory obligations.
     

      

     
     
     

Conclusion

This project showcases the importance of maintaining an up-to-date risk inventory in the face of ever-evolving global regulations. By partnering with experts like Axiom, the bank successfully navigated the complexities of risk mapping and compliance, ensuring they remain ahead in their industry.

 

Updating and managing a risk inventory of this magnitude is no small feat, but with the right approach and expertise, it’s possible to achieve remarkable results efficiently and effectively. This case highlights how strategic outsourcing and meticulous project management can lead to substantial improvements in regulatory compliance and risk management.