Data compliance's new place: Banking boards
Jul 12 2012, 14:00 PM
Compliance with financial regulations and a close attention to data quality have become central tenets of the banking industry in recent years. According to Business 2 Community, experts in these areas can be valuable members of banking boards. This could represent a way to counter what the source identified as recent "lapses" in compliance and ethics.
"A best practice is to have a compliance and ethics professional on the board much like the board typically has a finance expert for the CFO to work with," Society for Corporate Compliance and Ethics CEO Roy Snell told the source.
The source indicated that many of the problems with corporate reporting are not mere errors of technology - there are often malicious forces at work seeking personal gain from going against ethics best practices. The source indicated that a board member from the compliance department capable of looking after company data can save millions of dollars.
Large or small, financial organizations need to manage their compliance obligations. All Alabama recently reported on the demise of a small local credit union. In operation since the 1950s, the bank was undone by serious regulatory problems, brought to light when large loans defaulted.