City Bank’s Approach to Enterprise Risk Management

Replacing spreadsheets and cumbersome internal processes with an enterprise risk management system helps this financial institution stay current with industry regulations.

Photo provided by City Bank

At a Glance

For City Bank, a financial institution with branches across the Southwestern U.S., 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 program (ERM).

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 case study.

The 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 that combined multiple mortgage regulations into one, greatly impacting the mortgage process. Such fast-changing regulations made it difficult for the bank to keep up with requirements, resulting in ongoing changes to internal processes.

With its steady growth, a complex business portfolio and an 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 Solution

With help from a consultant, City Bank began the implementation of its Enterprise Risk Management program. They wanted to build a scalable framework while also formulating their risks and control inventory. Their consultant recommended investing in a Governance, Risk and Compliance (GRC) software solution. 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.

The 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 and Policy Manager. With an aggressive timeline, City Bank was pleased by the quick, organized implementation of Compliance 360.

There are now 60 users using the ERM application and the bank has quickly realized 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, City Bank

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.

 


 

About City Bank

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

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