Automated Entity-Level Controls and Testing of 2500+ Controls for a US-Based Community Bank

Client Introduction

A leading US-based financial institution that offers services to retail consumers, corporations, and nonprofits through traditional and digital banking.

Problem Statement

The bank wanted to upgrade the 1^st and 2^nd lines of defense for addressing operational risks, SOX compliance, and IT control validation.

Key requirements were:

• • Testing and calibrating 2500+ controls, including 600 critical controls per the OCC guidelines
  • Designing and refactoring the ERM framework to build operational risk resilience
  • Updating the Enterprise Control Management Program to comply with the latest standards

Solution Offered

Rapid prototyping of a bespoke digital solution to automate control sampling, clustering, and testing across the 1^st and 2^nd lines of defense.

Key solution delivered:

• Process mapping and control flow diagrams/narratives to find vulnerabilities
• Probabilistic sampling and modeling for assessing risks
• Digitally powered entity-level controls to support SOX compliance
• Customized automation logic to authenticate the data fields
• Global operating model to support scaled multi-shore delivery

Business Outcomes

• Rapid testing of over 2500 controls based on OCC parameters
• Continual updating of ECMP document and QA/QC methodology
• More efficient testing and validation process