A tier-1 investment bank

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Resolving high-profile regulatory compliance issues through specialist consultancy and development

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BUSINESS CHALLENGE

A tier-1 investment bank identified a number of issues with its operating model around the internal transfer of income and expenses in its global asset-management business. The issues had also been identified by the regulator, which raised a high-profile review point. Given the materiality of the issues, a high-level operational-risk item was raised at board level to highlight the compliance problems.

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SOLUTION

Calibrate took charge of the existing remediation work and instigated a new governance structure, setting up and leading a steering committee and two separate working groups – one for the roll-out of the control framework, one for the design of the future landscape. We assumed budgetary responsibility, managed key stakeholders, and ensured that risks, issues and dependencies were discussed, while completing all action points.

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OUTCOME

By embedding a robust governance model within the project and identifying deficiencies in the existing process, we reduced the operational risk rating to the extent that it was no longer seen as an item for board-level attention. Controls were implemented throughout the front-to-back process to ensure the correct identification, calculation, payment and booking of revenue and expense transfers, including an additional post-month-end review.

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