City Bank’s Approach to Enterprise Risk Management (ERM)

image Photo provided by City Bank
AT A GLANCE

For City Bank, the rate of change and complexity in every facet of their business accelerated within a relatively short span of time. In response, this Texas-based bank began to build a comprehensive Enterprise Risk Management (ERM) program. By gaining a thorough understanding of their business, their customers, and their goals for navigating the unpredictable banking industry, City Bank found the right solution to integrate risk, compliance, and audit across their business.

To read the detailed implementation steps and strategic guidance narrated by their Chief Risk Officer, Mikella Newsom, download the complete success story.

CHALLENGES

City Bank operates in both Commercial and Retail markets each with unique challenges. Their diverse portfolio includes business, residential mortgage, and agriculture loans. With 24 retail branches and 16 mortgage locations across the region, City Bank also faces challenges associated with being geographically dispersed. Since the implementation of the Dodd-Frank Act, the pace of regulatory change in the banking industry has increased. One example is the TILA-RESPA Integrated Disclosure (T.R.I.D.) rule which combined multiple mortgage regulations into one, greatly impacting the mortgage process. The fast-changing regulations made it difficult to keep up with the requirements, resulting in ongoing changes to internal processes.

With the steady growth, complex business portfolio and ever-changing regulatory environment, City Bank recognized the need for an automated system that would support a robust ERM program, and audit and compliance functions. Standalone spreadsheets were not an option to support future growth.

THE SEARCH IS ON

With help from a consultant, City Bank began the implementation of their Enterprise Risk Management program. They wanted to build a frame work while also formulating their risks and control inventory. Their consultant recommended investing in a GRC (Governance, Risk, and Compliance) software solution. They developed an RFP and contacted three GRC software vendors based on evaluations from a recent Gartner report. Vendor proposals and live software demonstrations were evaluated by a cross-functional team including the Chief Risk Officer, Chief Internal Auditor, Chief Compliance Officer, Head of IT and the Chief Operations Officer. Important criteria included:

  • Ease of use for the end user
  • Integration of application across the platform
  • Ease and speed of implementation
  • Cost effectiveness

Integration of functions across the platform was key to achieving their goal of working collaboratively across compliance, audit and risk. For example, risk assessments and controls from ERM could be used for audit planning and policies and procedures

Prior to implementing SAI Global’s Compliance 360 software we were in the process of recruiting a new FTE. Since the Compliance 360 solution acts as a virtual FTE by holding people accountable and automating critical steps, we didn’t have to incur the expense of an additional headcount after all. We would have added additional FTEs between Compliance, Audit, and ERM without the help of Compliance 360.

Mikella Newsom

Chief Risk Officer, City Bank

SAI GLOBAL SOLUTION & RESULTS

City Bank selected SAI Global Compliance 360 based on its superior user experience and cost effectiveness. Compliance 360 was the only solution to offer integration across all applications, which included Enterprise Risk Manager, Internal Audit, Incident Manager, Compliance andPolicy Manager. With an aggressive timeline, City Bank was pleased by the quick, organized implementation of Compliance 360.

Sixty users now utilize the ERM application and have already seen benefits. Risk profiles and controls are stored in one central repository where key stakeholders can easily access what all pertinent ERM data, regardless of function or location.  

The Compliance department feels more confident now that they have access to up-to-date regulations and are directly tying compliance audits to specific citings in the regulations.

Mikella Newsom

Chief Risk Officer

This allows their team to be more granular in their reporting and puts them in a stronger position to show evidence of compliance for exams and external audits. Compliance 360 has also helped the Audit department streamline their processes, realizing greater efficiency in their audits.

To read the detailed implementation steps and strategic guidance narrated by their Chief Risk Officer, Mikella Newsom, download the complete success story.

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ABOUT CITY BANK

City Bank was founded in 1941, with locations in Texas and New Mexico. With over 600 employees, they have grown from $250 million to over $2.5 billion in assets over the past 20 years. City Bank's mission to build lasting relationships through unrivalled customer service is evident by the smiles you see when in every branch location.