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Exam Coming Up? Get Risk and Compliance Management Software Now

Risk & Compliance

Exam Coming Up? Get Risk and Compliance Management Software Now

Posted by Ncontracts on Nov 11, 2021 8:18:25 AM

When regulatory exams are looming on your horizon, you might feel like putting off the implementation of a new solution for your risk and compliance management processes. After all, rolling out a new solution takes time, and your focus is your next exam, right?  

Don’t wait. Here are 7 reasons to implement risk and compliance management solutions before your next exam: 

1. You won’t have to reinvent your risk and compliance management system. Even if your financial institution has a strong risk or compliance management program in place, you may still be bogged down by manual processes like emails and spreadsheets. A risk and compliance management solution can work with your existing solutions for a smoother, easier implementation. 

2. Shorter, less burdensome exams. According to the 2019 American Bankers Association (ABA) Survey of Compliance Officers, “Examiner review of a bank’s risk management system appears to reduce examination length (38.4%) and scope of review (51.9%), suggesting that a good compliance risk management program may reduce the bank’s regulatory burdens.”  

Implementing risk management solutions before an exam gives examiners confidence in the thoroughness of your work. They’ll spend less time looking for deficiencies, because they’ll have the confidence that you’ll have already identified and corrected them. 

3. Better predict where examiners will be looking. Examiners invest their time and resources on identifying and examining areas of increased risk. Do you think you know where the greatest risk is? Or do you have updated risk assessments that let you know exactly where and how much risk you have? 

Examiners will be looking to answer that question and use it as a guidepost for their exams. When you know where the risk is, you know where examiners will be looking (and you’ll have a stronger, more risk-resilient institution).  

4. Show your examiners you’re being proactive. Examiners are taking a closer look at risk management. Safety and soundness, operations, and strategic planning all tie back to this important topic. Regulators want to see financial institutions “guarding against complacency” and “vigilant when considering growth and new profit opportunities.” In many cases the examiners will actually consider the FI’s risk management when assessing compliance. 

Adopting Ncontracts solutions shows examiners you recognize the increasing importance of risk management and are taking action to make yours more effective and transparent. 

5. Better protect your FI and its customers/members. Maybe you’ve never had a significant exam finding so you’re not worried about examiners. Is that the only reason you invest in risk and compliance management? Of course not. You want to make sure that systems are up and running, consumer compliance laws are followed, and risks are managed so that you continue to serve the customers and members who rely on you.  

Our solutions help you identify and correct problems quickly so that small problems don’t become big problems that can hurt your institution or those it serves. If you’re waiting until you know you have a problem to adopt a risk and compliance management solution, it may be too late. 

6. Lock in this year’s prices. When you sign your contract with Ncontracts in 2021, you lock in this year’s pricing—saving your institution money. 

Let’s get real here. You may be waiting for the perfect time to implement new, more efficient compliance and risk management solutions. If you’re waiting for a lull in your schedule or a blissfully quiet period, we’ve got some bad news: It’s not coming. And that brings us to Reason #7… 

7. Are you really going to have more time later? Exam prep can be a heavy lift if you’re still relying on manual processes, but will you really have more time after the exam? There’s always a new regulation to implement or an audit or review to complete.  

The perfect time is now. When you automate risk and compliance management with Ncontracts solutions, you’ll not only enjoy the benefits of a smoother process for your next exam. You’ll lay the groundwork to make all your future exams easier—and gain efficiencies that will free you up to focus on your next initiative for safety, soundness, and success at your financial institution. 



Topics: Risk & Compliance