Lombard Risk Management plc (Lombard Risk), a leading provider of integrated regulatory reporting and collateral management solutions for the financial services industry recently hosted its Regulatory Compliance User Group conference. Held this year in New York City, the User Group comprises banks from across North and South America that use Lombard Risk's innovative software to facilitate their US and Canadian regulatory reporting requirements.
Highlights of the event included:
Kenneth Lamar, Senior Vice President Statistics Function at The Federal Reserve Bank of NY, described key report revision activity surrounding the FR 2420, FR Y 6/7/10, FR Y 15 and FR Y 16 reports. Lamar also shared his views on effective data quality processes and improvement programs, which he believes focuses on several key areas:
- Accountability which should be measurable, actionable and enforceable at the business line level.
- A concrete Data Quality Assurance process which start with an efficient data compilation process, has proper analytical tools to measure its effectiveness, and experienced resources to support it.
- Data Infrastructure with close alignment between business lines and the enterprise-wide data infrastructure, which improves data quality, increases data availability and standardization across the enterprise.
- A process for validating interpretative issues, documenting differences and analyzing these over time.
James Philips, Director, Regulatory Strategy, Lombard Risk, discussed the US implementation of Basel III, what is left to come, and expectations around Basel IV. He shared his views on the expected changes in the supervisory framework which include revisions to the standardized approach to credit risk and large exposures and to measurement of counterparty credit risk exposures; market risk changes and the Fundamental Review of the Trading Book and the new FRTB-CVA framework; revisions to the standardized approach for measuring operational risk; and finally the impact of capital floors and interest rate risk in the banking book.
Lombard Risk subject matter experts, Natasha Eastes, Shauna Hughes and Gavin McConville, provided a live demonstration of Lombard Risk's new regulatory reporting solution and described its development roadmap.
James Philips, Director, Regulatory Strategy, Lombard Risk commented, "Lombard Risk's regulatory automation platform is undergoing significant changes to enable clients to benefit not just from regulatory report generation but also from process automation, resulting in multi-purposed data, reduced operating costs and reduced regulatory risk, with improved transparency and auditability of the approval process."
Philip Crawford, Executive Chairman of Lombard Risk, closed the event by commenting on how the tsunami of regulation has become a series of overlapping waves. He noted that while regulation is often seen as a compulsory yet cumbersome process for firms, once firms are properly equipped to address their regulatory requirements they gain considerable benefits in their ability to manage their firm effectively.
"We will work with our clients to see that is the case," Crawford said. "It is a benefit that is due to come out of all of this regulation, which is about running businesses appropriately and more efficiently."