Thursday, January 24, 2008

You Could Be the Next Compliance Star

Compliance costs “grew significantly faster than net income for financial institutions,” in part because banks and thrifts are adding people to monitor compliance versus using technology resources to manage it, according to a new report from Deloitte & Touche USA.

Compliance costs as a percentage of net income rose from 2.83 percent in 2002 to 3.69 percent in 2006, said survey respondents, which included chief compliance officers, chief risk officers and other senior execs at 20 of the top 50 banks and thrifts.

Deloitte also blamed the increase on failure to manage compliance across functions. Institutions have not taken advantage of the overlapping elements of Sarbanes-Oxley, Basel and the USA PATRIOT Act. And, they’re replicating compliance practices in individual lines of business, an approach that makes it tough to develop comprehensive compliance information.

Sounds to us like a case for you being in charge of a visibility-raising, across-the-business-lines committee.

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