The area of Human Resources should not be forgotten when considering your organization's strategy for managing risk and compliance. With myriad responses to regulations in the pipeline - such as AIFMD, Solvency II, Basel III, Fatca, and so on, it is often easy to focus on putting in place new business processes, rather than ensuring your staff have the right knowledge, skills, capabilities and accountabilities to deal with these challenges.
Typically information about the roles and jobs that make up organizations is poorly managed, and is rarely communicated effectively to staff. For example, job information is often stored as word documents on a central server. This information is hard to update and it is a challenge for organizations to adapt to changing risk and compliance requirements.
Oversight of organizational information is particularly useful in understanding exactly which key roles and jobs have specific risk and compliance responsibilities, accountabilities and capabilities. Without this, it is very difficult to assess the organization's ability to deal with a complex risk and regulatory environment.
Giving employees a clear understanding of their role, and also how they can progress within the organization is an important part of improving staff engagement and retention. Losing critical staff and finding and training new talent can be a significant burden to the organization, and in certain cases can result in poorly managed compliance initiatives. Finally, it is clear from recent large fines in the financial services sector, that large organizations face real challenges when integrating new businesses with their current risk and compliance processes.
Understanding the differing roles and responsibilities of the people when acquiring new business has to be an essential step to achieve a smooth and risk free merger.
To address the above concepts, Xactium and its partner Aquarius have recently launched Role Manager together, a cloud-based service that is intended for use by larger organizations seeking to implement better ways of keeping track of employee role descriptions, responsibilities and capabilities.
Role Manager enables clear communication of the capabilities of key roles and jobs, what reporting responsibilities each role has and how performance should be measured. Amazingly, in many financial institutions this is not done at present because organizations are too focused on introducing yet more 'tick box technology', rather than truly understanding the people aspect of risk and compliance.
Although a new solution, Role Manager has already been successfully rolled out at three major banking groups and within the UK public sector.