Recent Regulatory Enforcement Prompts New Audit, Risk and Compliance Unit
The Department of Justice (DoJ) recently announced moves to beef up its investigations into alleged discriminatory mortgage lending and servicing practices. The decision, likely to result in more investigations into the practices of mortgage lenders and servicers, in part prompted Wolters Kluwer Financial & Compliance Services, to create a new unit to help clients mitigate operational risks such as this. The Netherlands-based workflow solution provider launched the new business unit, called ARC Logics, to focus on audit, risk and compliance (ARC) challenges. “More stringent scrutiny and demand for transparency by regulatory agencies, increased globalization and a greater dependence on outsourcing, all underscore the need for organizations to take a more unified, efficient approach to enterprise risk management,” said Brian Longe, CEO of Wolters Kluwer. Many professionals in the financial industry are preparing for the heightened scrutiny. More than half, or 52%, of bank executives responding to a recent survey said they intend to make changes to their firms’ enterprise risk management (ERM), while 13% plan to add staff to address a growing focus on ERM and corporate governance. “By selecting and integrating the compliance and risk management tools they need from the ARC Logics suite, even the largest, most diverse organizations can synchronize their audit, risk and compliance efforts across all processes, operating units and geographies,” Longe said. The new unit will offer a suite of software and services to help more than 1,800 client companies address risks as they evolve in a changing compliance landscape, Wolters Kluwer said. The "CCH TeamMate" offering provides a paperless system for the audit process, while the "Sword" brand monitors compliance and risk and "Axentis" reduces exposure to compliance and risk. ARC Logics serves 350,000 users in more than 100 countries, Wolters Kluwer said. Ian Rhind, a previous president and CEO of CCH Canadian, another Wotlers Kluwer business, will lead ARC Logics as president. Write to Diana Golobay.