Susan Palm: Companies can use GRC to adopt to Dodd-Frank changes

By John L. Guerra

Editor, GRC & Fraud Software Journal

Susan Palm, senior vice president, Industry Solutions, MetricStream

Susan Palm, senior vice president, Industry Solutions, MetricStream

Susan Palm, senior vice president of Industry Solutions for MetricStream, talks about the impact repealing Dodd Frank will have on mergers and acquisitions, the operational risk firms will face and how GRC technology that can help to alleviate subsequent risks.

MetricStream continues to ramp up its investment in mSIG user groups in response to the volatility of change coming out of the White House.

 

Q: How will this investment help customers to address the volatility?

Susan Palm: MetricStream’s clients represent both the largest and smallest financial services firms. These clients are examined by the FDIC, OCC, and Federal Reserve. The regulators sometimes publicly share examples of best practices for generating a strong risk culture, for managing third party vendors, conducting effective control tests etc. The mSIGs act as a forum for banks to discuss their own best practices and experiences and learn from each other.

Clients find the user group forums particularly useful to share information regarding adherence to laws and regulations and the use of technology to create efficiencies and good data analytics.
Q: How will changes in Dodd Frank or a total repeal of the law impact mergers and acquisitions?

Susan Palm: There are certain dollar thresholds for increased regulatory scrutiny. For example, banks under $10 billion in assets have one type of examination schedule. Banks greater than $10 billion in assets have a more rigorous schedule of examinations, and banks greater than $50 billion have an even greater level of regulatory oversight and examination.

This has created a barrier for banks to merge if their new combined asset size puts them into a different examination category.

 

Q: How can GRC technology, especially M7, help companies to remain compliant and address risk in view of sweeping change?

Susan Palm: One feature of M7 enables companies to leverage mobile phones and tablet technologies in addition to traditional PC technology to deliver policy, standards and procedures to staff.

As the laws change, banks need to update their policies and procedures appropriately. Ensuring that policy and procedure changes are completed — and delivered to staff when and how they want to consume this information — will now be faster and easier with M7.
Q: What are a few best practices for firms, to prepare for continued changes in regulation from the White House?

Susan Palm: Firms should implement GRC technology solutions that integrate with strong law and regulation content providers, so that changes in laws and regulations can be quickly consumed and analyzed.

Stay vigilant and get involved in user group forums, such as RMA, ABA, with MetricStream. For smaller banks that don’t have sizable legal and compliance teams, participation in these user forums enables them to learn from the bigger bank’s experiences and leverage the investments made by larger banks with greater resources.

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