The document discusses the automation of compliance management within a banking environment, outlining key considerations such as organizational structure, departmental linkages, and compliance frameworks. It emphasizes the importance of compliance with laws and regulations, compliance risk management, and the need for an effective reporting system to management. Additionally, it suggests various automation strategies to enhance compliance processes and risk assessment.

1. Automation of Compliance
Management –
Implementation Considerations
Ronald Fernandes, SVP
Axis Bank, Compliance Department

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3. Compliance Framework
1. Organisation Structure
2. Structure of Compliance Department
3. Linkages with key departments besides
business/operations
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4. Organization Structure
BANK
Departments D1 D2 D3
Business B2 B3 B4 B5
B1
Assessment
AU1 AU2 AU3
Units
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5. Data Integration
Complaints Frauds Regulatory changes
Products/
Internal/External Audits Business
Change Management
Internal Controls/
Processes Policies/Manuals
Control Test Steps
Regulatory Correspondence Regulatory Returns
Regulatory Sanctions Banking Industry Regulatory Strictures
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6. Automation suggestions
1. Compliance with laws and regulations
2. Compliance Risk Management
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7. Compliance with laws and regulations
1. Regulatory changes
2. Regulatory returns
3. Regulatory correspondence
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8. Compliance Risk Management
1. Compliance Risk Assessment
• Process/Control documentation
• Universe of applicable regulations
2. Compliance Monitoring
• Self Certification
• Key Compliance Indicators
• Compliance Testing
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9. Compliance Risk Assessment Framework
(Contd..)
Components of CRA
Inherent Risk Control Environment
=
Impact X Likelihood Control quality
assessment
Control performance
Cluster of Assessment assessment
regulations Unit
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10. Control Environment
Maker
Checker
Preventive &
Detective
Control Quality
Index (CQI)
Manual & IT
GRC Self
Control
Assessment
Environment
Score
KCIs
Control
Performance Testing by IAD
Index (CPI)
Testing
Theme based
review by
Compliance
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11. Reporting to Management/Board
1. Breach Management
2. Resolution status
3. Dashboards
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12. Do what works for your organization
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13. Q&A
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14. Thank You
Mr. Ronald Fernandes, SVP
Axis Bank Ltd., Compliance Department
022 – 2425 2207
+91 98219 31307
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