Financial Services

How do you reduce costs, mitigate counter party risk, and ensure regulatory compliance?

Basel II, Sarbanes-Oxley (SOX), Gramm Leach Bliley Act (GLBA), the Bank Secrecy Act (BSA), the Patriot Act...the number and breadth of regulatory standards for financial services organizations has grown exponentially over the last few turbulent years. Many of these regulations are so broad - they require institutions to extend their risk management to third-parties and suppliers outside of the enterprise. Not only have these regulations significantly increased the cost of compliance for financial services companies, but noncompliance with any of these standards can lead to stiff penalties and damage to an institution’s reputation and stock price, not to mention personal liability.

Given this regulatory landscape, combined with increased competition from non-traditional players, commoditization of products, and advances in technology, it is not surprising that today, many financial services institutions find effectively managing suppliers to be among their most challenging initiatives. Recent industry events, such as SOX prosecutions, Patriot Act information demands from government agencies, and BSA fines, demonstrate that a lack of control over supplier information and risk can lead to significant reputational, financial, and employee liability for a company.

And it isn’t just about banking regulations. The US Foreign Corrupt Practices Act (FCPA) implements rules and penalties regarding the use of bribes in the conduct of business, even on the part of trading partners, and other countries aren’t far behind.

Aravo can help

Aravo has helped many Financial Services companies effectively manage their trading partner relationships to ensure global regulatory compliance, reduce supply chain risk, and significantly lower administrative costs. For more information, please click on one of the choices in the Learn More box to the right.