I was talking on the telephone with a client some time ago when she asked if I could help her to implement policyIQ for “fu-deesha” compliance.
My gears locked for a moment. I didn’t recognize the term. (I didn’t even recognize that she was using an acronym!) Was I going to sound silly? But then that little voice in my head reassured me that compliance initiatives across all industries are really similar from a content management perspective – and policyIQ offers a great framework for capturing, organizing and reporting on all sorts of business information.
“Sure,” I said. “Help me to better understand your documentation needs.”
After just a few minutes of listening to her description of her needs, I was able to easily relate it to compliance initiatives that I was familiar with; this was really very similar to the top-down risk-based approach that many of our clients were already employing for Sarbanes Oxley compliance, Operational Audits, compliance with the insurance industry’s Model Audit Rule and the like.
What’s FDICIA? And where does Basel II come in?
FDICIA stands for Federal Deposit Insurance Corporation’s Improvement Act. This act was passed by the United States’ Congress in 1991 to help or better ensure that banks were adequately managing financial and compliance related risks. In practical application, while FDICIA was passed first, it may be easiest to picture this as the Sarbanes Oxley (SOX) Act for banks. Compliance with the act is required for banks over a certain size, but recommended for banks of any size.
While less formal, the Basel Accords are still very influential, providing further recommendations for banking and financial laws and regulations internationally. Basel I and II Accords aim to reduce credit risk and investing/lending risk, respectively.
The application of policyIQ for your compliance documentation and certification of your employees is straight forward, regardless of the regulatory body or legislation with which you must comply. If you represent a bank or financial institution that is acquiring another institution, you are simply growing on your own to the point where you will soon surpass the “FDICIA floor”, or if your organization simply wants to exercise sound financial risk mitigation practices, you will certainly benefit from the application of a system that helps you to capture, track, and retrieve your compliance documentation, as well as one that facilitates the automation of your certification processes. Let policyIQ be that system – and continue building a strong internal control environment across your organization.
We have performed formal training sessions and developed written guidance for a number of Risk-based initiatives. Feel free to comb through our policyIQ online manuals or contact us. We not only have the user friendly and scalable system for your documentation needs, but we can pair you with experts in the banking and finance industry that can support you through your compliance efforts.