It's getting real out there!
Wow, the OCC assessed an $85 million fine against USAA for unsound practices related to compliance and IT risk management.
What this means:
1. Siloed and manual governance, risk, and compliance (GRC) functions lead to big problems.
2. GRC needs to be integrated and agile. Integrated and agile might seem expensive in comparison to doing all this manually or with legacy GRC solutions, but when you compare it against the real risk of fines, it is money well spent.
3. Guess whose names ended up at the bottom of the order? Not the CEO, not the Chief Risk Officer, no — every single member of the board of directors.
When boards for financial institutions turn down budget requests related to GRC, the next question they should ask themselves is how they look in orange.
Don’t forget:
?? your IT and compliance risk managers, because they will save your @$$!