The institutions operating in the financial sector are heavily regulated, with a compliance environment growing every year. These institutions work based on elaborate business models where successful risk management is the foundation of good governance. Learn how and why banks and the financial sector could improve their compliance through board management software.
Regulation and Compliance in the Financial Sector
The financial sector is subject to some of the most stringent regulations and compliance requirements across industries.
To put it into perspective, over 750 global governing and regulatory institutions oversee the adherence to compliance standards in organizations operating in the financial sector.
The cost of not following compliance requirements is dire for banks and financial institutions. From fines and litigation to damaged public relation image, financial institutions simply cannot afford poor governance and lack of compliance.
Here are the four biggest regulatory concerns that banks and financial institutions face:
- Risk management
- Data management
- Recording and reporting information
- Customer checks
Role of Board Management Software in Governance
Using a board management software can improve governance and help the boards of financial institutions make insight-based decisions.
Financial institutions need a secure and convenient method for storing, managing, and organizing documents containing regulations, guidelines, and requirements.
A board management software is a secure and encrypted environment for the management of governance documents. Board portals such as Convene can store files in multiple formats, allowing integration with the most commonly-used software for document creation. With Convene, collaboration can be interactive, letting users make notes and discuss key items. All changes to documents automatically synchronize with devices connected to the board portal.
Communication is at the core of well-organized governance practices. Established information flow frameworks help streamline communication with all stakeholders. With a board portal, financial institutions can support the preparation of information flow frameworks and facilitate communication among directors and executives.
Convene features a variety of communication channels, including video conferencing and instant messaging to ensure board members have all communication tools at hand. Board members can easily reach committees, chief officers, or other stakeholders.
Preparing board meetings, including the creation of board packs and scheduling can be an arduous task for administrators and corporate secretaries. When there is no established workflow for these activities, these tasks can carve out a significant chunk of time from daily availability. With a board portal, meeting administrators of financial institutions can easily prepare, organize, and conduct board meetings with a set of convenient features.
Less time spent on repeatable low-level tasks gives corporate secretaries to focus on high-level activities that aid the board members in practicing better governance.
Risk management is a key element of good governance among the organizations operating in the financial sector. With the expanding regulatory and compliance landscape, having a secure place for the creation and distribution of risk- and policy-related documentation is necessary for the board to make informed decisions and recommendations regarding risk mitigating strategies.
Easy, convenient, and secure access to governance documents from a wide selection of devices and operating platforms gives the board increased control and insight into critical information.
Convene is equipped with advanced and high-level security features that help administrators control access to the portal and limit the risk of a data breach.
Comprehensive access control features provide multi-level security where access can be customized to include defined groups and users with specified privileges to access and modify data and documentation within the portal.Â
Third-Party Vendor Security
Having safety guards supporting the boardâ€™s operation is key to successful risk management. Board portals for banks should use vendors that have a history of reliability and proven security procedures in place to decrease the risk of third-party threats.
For example, board portals, on top of being equipped with robust security features, should ensure that the vendors they use to deliver their services have backup strategies, intrusion detection systems, and valid certification. With sensitive information at stake, security covering the whole spectrum of the infrastructure is paramount and should leave no loose ends.
A Board Management Software Can Support the Governance in the Financial Sector
A board management software helps organizations in the financial sector execute good governance and control their regulatory and compliance risk activities. By using a governance management software, the board can discuss important business matters, make critical decisions, and keep a hold of sensitive documents.Â