Besides the fact that Financial institutions have to pay attention more than ever to their profitability in the current economic context, additional pressure is put on Risk, Finance and Compliance departments to provide European supervisors on their regulatory deliveries. It is a necessity to be more accurate, more consistent, more granular in information provided with a higher frequency and an optimal internal governance with clear accountability.
To be able to reach the appropriate level of delivery, correctly identify the right level of expertise and to seize opportunities in terms of production optimisation (on both organizational and/or IT systems), outsourcing is a strong driver to consider.
Applied to regulatory production, outsourcing can bring several benefits:
- At the level of the production workforce: due to the complexity and sensitivity of regulatory deliveries, production is requiring more professional experts to seek, to develop and to stay motivated;
- At the level of information systems that need to be continuously enhanced, completed and adjusted to the new regulatory paradigm;
- At the level of the rationalisation of the operational structure with a better streamlining of the organization, a better allocation of internal human resources (more focus on key business or steering subjects).
At ML Advisory, we develop for our clients and in close partnership with them an outsourced regulatory service offer compliant with EBA requirements (revision and strengthening of the outsourcing guidelines in force since 30 September 2019: https://eba.europa.eu/regulation-and-policy/internal-governance/guidelines-on-outsourcing-arrangements
Our objective is to provide to our client a shared execution capacity to generate maximum value in terms
- Of operational excellence through service level agreement, key production / risk / performance indicators, operational controls, certification package;
- Of continuous improvement to standardize, simplify and monitor efficiently processes, tools, data or reporting;
- Of simplified access to new digital opportunities such as data analytics, data visualization, machine learning, automation.
Our outsourcing service offer is based
- On our experience acquired directly within offshore shared service centres, from the customer or service provider point of view;
- On a pool of consultants trained to European regulatory matter with production experiences;
- On a strong partnership with technological and advisory partners.
For instance, the productions concerned may cover
- the certification of the data through reconciliation such as credit accounting consistency;
- the production of all or part of the regulatory reports (statistic and supervisory).