Management information (MI) to identify compliance related risks and issues within a financial services entity can be wide-ranging. Metrics such as KPIs and KRIs serve as risk management tools that can be used as an “early warning” signal, to address an issue before it increases in gravity. MI can help uncover systemic issues and track remediation programmes.
On the financial crime side, a range of sophisticated analytic tools and AI is being used to help formulate a financial crime prevention strategy which analyses and provides useful insights even before they take place. Financial crime MI (pre and post transaction) may include:
- Red flags relating to sanctions breaches
- CDD and AML breaches
- Vendor review discrepancies which may lead to bribery and corruption
- The level of suspicious alerts generated and reported
- Data on higher risk customers and enhanced due diligence done
- Backlog of sanctions and AML alerts
- Statistics of staff who have undergone training or not
- New staff who have undergone vetting etc.
- Regulatory breaches
From a regulatory compliance perspective, MI can be a powerful tool to manage the following matters, to name a few :
- Mis-selling of products by branch or by salesperson
- Customer complaints by month, product, and persistent complaint issues
- Regulatory breaches
- Potential market abuse cases, control of information breaches and conflict issues
- Whistleblowing cases being investigated, ageing, and resolution as well as themes
- Open regulatory findings and their remediation
An effective MI dashboard should be user-friendly and help management as well as the Board of Directors make informed decisions.
