The pandemic has disrupted operating models of businesses across the globe. Since the beginning, LogicManager has partnered with our clients to help them pivot and prepare. As we wrote about in our blog, our company was built on a foundation of seeing around the corner. In February, we rolled out a COVID-19 relief package to our customers. In May, we rolled out a Return to Work and Preparing for Wave 2 Solution package.
Over that critical period of time, we collected over 160 value stories from our customers about how they leveraged our guidance to drive their businesses forward. This series will delve deeper into those stories in hopes of helping other businesses throughout this challenging time.
Topic: Taking an inside out approach to COVID-19 business continuity planning
A customer of ours in the banking industry recently experienced a win worth sharing. This company values being a good neighbor, giving back to their community and providing excellent customer service. The bank employs over 2,000 people at over 200 branches across the United States, and they provide a broad range of commercial financial services to businesses, investors, municipalities and individuals.
With such a broad scope of work, this company needs to be able to seamlessly turn chaos into order. Otherwise, the hard-earned money of millions of Americans is on the line. Like all banks, they must conduct business in accordance with rules and regulations of the OCC, Federal Reserve, CFPB and many other regulatory bodies. Managing the myriad of risks defined by those regulatory bodies – on top of all the typical operating risks – can sometimes feel like a juggling act, which is why this company initially came to LogicManager for help with streamlining their enterprise risk management program.
Staying on top of (and getting ahead of) these regulatory risks is a demanding responsibility on any given day, but amidst the pandemic, regulations are changing at an unprecedented speed on the federal, state and city levels. Banks have a larger role to play than ever in protecting their customers, vendors and employees, and if history repeats itself, they’ll be under scrutiny by regulators at the first sign of smoke. Over the course of the next couple of years, the liability of lawsuits and penalties due to negligence will be higher than ever, so maintaining evidence of your compliance in each of the jurisdictions you operate in is critical.
In May of this year, our client came to us with a concern: they received some rather vague guidance from a regulator that they would be required to show evidence of implementing a comprehensive COVID-19 risk management response plan. This triggered a lot of questions – “What exactly will we need to show them?” “How robust will the plan need to be?” “Does our approach need to follow any particular set of best practices?” They didn’t have the answers, so they turned to our Advisory Team for guidance.
How We Helped
LogicManager has been providing ERM software for banks since our inception. Our software provides regulatory templates, libraries and assessments to ease the burden of regulatory examinations. All requirements, documents, frameworks and controls can be centrally managed, allowing you to pull key information quickly to withstand regulatory scrutiny.
In this particular instance, our client utilized our secure webform in conjunction with the regulatory exam management capabilities. Our Advisory Team worked with them to develop a questionnaire that went directly to the front lines of the organization.
This posed questions like:
- How significant are the changes that have happened at your branch as a result of COVID-19?
- Do you feel those changes have altered the risk profile of your particular department?
- Have you been involved with updating or creating any products or services in response to COVID-19?
- Does there seem to be an increase in customer complaints?
- How have you changed your controls, policies or procedures to adapt to COVID-19?
- In terms of direct risks: Has there been an increase in cyber attacks? Any loss of PII? Have you run into any issues with vendors?
The goal of collecting responses from this questionnaire was to be able to identify which areas they were most susceptible to regulatory risks as they related to the pandemic.
Our client was able to collect responses from all of their branches, which offered them substantial data from the viewpoint of front lines. Because of the information they collected, they were then able to update their risk assessment and conduct a gap analysis on exactly where they are most susceptible to COVID-related risks. This set them up for successfully creating a custom-fit COVID risk management plan.
In response to that obscure warning they received from regulators back in May, this company could have gone down a rabbit hole crafting an arbitrary COVID risk management plan. This may have checked the box, but if it wasn’t in line with their organization’s real, everyday risks, it wouldn’t protect them from negligence down the road.
As an organization that values their community, it was naturally imperative to them that they make informed decisions in order to keep their employees and customers safe. They can now feel confident in knowing that they’re doing the best they can to prevent the spread of the virus, and that if regulatory requirements change at the drop of a hat, they’re ready to pivot and prepare using a tried and tested approach.
Protect your workplace with LogicManager’s integrated incident management tools. Start by requesting a free demo today.