Solutions

Compliance Transformation

Helping you build an effective, adaptable and efficient compliance function

Compliance functions are increasingly in the spotlight for non-financial risk management failures. As the interface between the business and regulators, the compliance function is required at times to manage conflicting goals. On the one hand, compliance must meet ever-changing and more demanding regulatory expectations, which often differ across operational jurisdictions. On the other hand, there are internal pressures to reduce costs whilst managing these regulatory risks more effectively. Therefore, having a lean, efficient and effective compliance organisation is increasingly being seen as a competitive advantage among FSIs.

In order to achieve this, compliance functions must evolve to take on the role of oversight and challenge. Under the three lines of defence model, the business (first line) must assume greater ownership of the risks they take, whilst the compliance function (second line), looks to divert efforts from repetitive, manual tasks to important advisory services. As part of this role, compliance should use suitable tools and risk detection technologies to assist with addressing risks and ease the burden of manual controls. Moreover, the compliance functions will need to ensure that the policies and procedures within the first line of defence (1LoD) are effective and adhered to, through the targeted use of surveillance technologies. 

Compliance must also continue to take an active role in converting regulatory change into internal policies. This can be best done through a collaborative approach with 1LoD and the help of RegTech solutions. Once implemented, business functions must adhere to these policies under compliance supervision.

Key challenges our clients are facing:

From our experience with clients across numerous engagements and discussions, we have identified a number of key challenges facing compliance functions: 

Selected insights on best-practice principles

Through our extensive experience in transforming compliance functions of global and domestic FSIs, we have developed an established approach to enable a rapid current state assessment (diagnostics) and produce a transformation roadmap that provides real stakeholder value, focusing on delivering changes with the greatest impact.

Our approach:

Diagnostic & benchmarking
Leveraging our global Deloitte network and deep industry experience, we can provide a comprehensive analysis and maturity assessment against best practice to gain insight into the current maturity and effectiveness of the Compliance function.

Compliance target operating model design
Designing and implementing a target operating model that fits the compliance vision, strategy and mandate of your firm, including transformation of governance and operationalising the risk appetite framework.

Re-design of key processes in line with current risk drivers
We can help ensure that compliance processes are effective at mitigating material risks to the firm, and make compliance processes efficient by doing more with less.

Compliance digitalisation & analytics
We can support you in adopting targeted risk analytics tools in areas such as regulatory obligation tracking; communications & trade surveillance and RCSAs, as well as enhance sourcing, aggregation and analytics of data to enable more proactive risk management.


 

Key contacts

Marc Grueter

Marc Grueter

Partner

Marc is a Partner in Deloitte’s Risk Advisory practice and a member of the Financial Services leadership team at Deloitte in Switzerland. Within Deloitte Switzerland he is in charge of Risk, Regulator... More

Sven Bischof

Sven Bischof

Director

Sven has over 12 years’ experience in asset and wealth management and has worked in consulting firms and financial institutions in both established and emerging markets. Within his project portfolio, ... More

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