$17.5 million fine for CEO drives home individual accountability for Risk, Governance


page image

By Frank Cummings • CEO of AML Partners

Horizontal GRC provides guardrails and truly shared accountability for Governance, Risk, Compliance

The $17.5 million fine and lifetime ban levied on John G. Stumpf, former CEO of Wells Fargo, made headlines in all the major papers yesterday. For professionals in the industry, that individual accountability provides a stark reminder of all the things that can go haywire in Governance, Risk, and Compliance (GRC).

According to the court filing, this individual accountability for GRC failures went well beyond the CEO. A chief risk officer and a chief administrative officer also agreed to major fines and to restrictions on their employment in the industry. And five other executives have also been charged.

While the Wells Fargo case may show an extreme example of GRC gone awry in the pursuit of profits, every financial institution grapples with the challenge of achieving maximum revenue while maintaining reasonable GRC standards. For many institutions, Horizontal GRC can provide essential guardrails to achieve both aims.

Why Horizontal Governance, Risk, and Compliance?

Horizontal Governance in this context describes a business environment that seamlessly and purposefully shares data, analysis, insight, oversight, and accountability horizontally across the enterprise. Horizontal Governance in concept and operation is the antithesis of siloed divisions, siloed governance risk and compliance efforts, siloed data, siloed processes, and siloed executives and board members. With Horizontal Governance, knowledge—and therefore accountability—are spread out across the enterprise in a way that provides both guardrails for decisions and behaviors but also truly shared accountability.

The concept of true Horizontal Governance has enticed high-performing businesses for years, but the logistics have been unwieldy, especially as institutions grew in size, product offerings, service areas, and divisions. And that is to say nothing of the exponential growth in regulations governing Governance, Risk and Compliance (GRC). And while software, networks, and digital data have provided tremendous software tools for enterprise customers, these tools have often reinforced the siloed realities and mentalities of business enterprises.

How Technology Supports Horizontal GRC

AML Partners’ RegTech OneTMplatform, however, turns that silo-centric paradigm on its head and provides for enterprises an opportunity to embrace Horizontal Governance and its potential to boost both revenue and peak management of Risk and Compliance.

RegTech One provides for users a tech platform on which to stage and interconnect their existing systems. And because it’s a platform built specifically to facilitate Governance, Risk, and Compliance across an enterprise, it’s a platform loaded with Risk-relevant tools, oversight, analysis, and reporting features.

With RegTech One, users create from their existing software tools a Network of Applications, and from this network there emerges an Ecosystem of Permissioned Data—from across the enterprise and facilitated by RegTech One.

With RegTech One facilitating this Network of Applications and Ecosystem of Permissioned Data, users then leverage platform features like the Action and Event Libraries, the automated email notification systems triggered by the Action Library, the Dynamic Risk Engine, and the Holistic Screening and Matching Engine, to name just a few Risk-relevant features.

And because the RegTech One platform is API-based, users choose their applications, their configurations, their notifications, their data sharing and management, and so much more in ways that precisely support their own specific needs for Horizontal Governance.

RegTech One, in its capacity to facilitate Horizontal GRC unique to each institution, offers an extraordinary shift in how enterprise users can maximize revenue while also minimizing Risk and achieving Compliance.

For institutions that want to avoid regulatory or consumer nightmares, a silo-busting Horizontal-Governance powerhouse like RegTech One is a lifeline. But RegTech is also a gamechanger for businesses already committed to the concept of Horizontal Governance but stymied by the logistical realities.

With RegTech One, the dynamism of ‘plug-and-play’ platform technology here. Now. Ready to create your Network of Applications. Your Ecosystem of Permissioned Data. Your true Horizontal Governance across the enterprise.


‘KYC Gold Record’ with RegTech OneTM platform boosts comprehensive AML/KYC, Risk Management

AML Partners designed its flagship software platform RegTech OneTM as a No-Code Horizontal Governance-Risk-Compliance platform with dynamic workflows designed for comprehensive AML/CTF and countering fraud. RegTech One provides the single software platform for end-to-end AML/CTF, Case Management, vendor management, and any other RegTech or Business Process Management. AML Partners’ RegTech OneTM platform gives Auditors, Risk Managers, and Compliance professionals a Network of Applications and an Ecosystem of Permissioned Data to self-serve their internal controls on all systems. AML Partners’ innovations include providing one-time global onboarding; KYC Gold Record is now a configuration option within RegTech One’s No-Code development environment. Platform users now onboard customers one time in one country and reuse that onboarded data locally, adding or removing local jurisdictional requirements. Onboard once; use globally as often as desired. To learn more about RegTech One and to schedule a demonstration, contact us today.