Engagement Summary
In 2021 Monticello Consulting Group (Monticello) partnered with the Data Management & Technology team at a leading financial institution to support the delivery of a large-scale regulatory risk remediation program to resolve shortcomings identified in a Matter Requiring Attention (MRA) notice raised by the Federal Reserve Bank (FRB). This multi-year program was initiated by our client in response to bank’s deficient firm-wide governance, systems, internal controls, and data quality measures that hindered its ability to submit accurate quarterly regulatory reports. The objective of this program was to automate key processes and improve data analysis standards in support of the operational and risk management functions tasked with producing the monthly reports. By successfully implementing these requirements, the Monticello team greatly contributed towards our client’s resolution of a pending MRA while minimizing a range of related regulatory risks.
Regulatory Compliance Reporting
Data Remediation
Data Management
Centralized Data Platform Build-out
Change Enablement
Enhanced Validation of Internal Controls
Risk Management
The Monticello team was responsible for designing, building, and operating the client’s Program Management Office (PMO), and facilitating integrated delivery across four program workstreams and several external service providers. By setting up a PMO to centrally manage the governance structure across program workstreams, the Monticello team effectively held stakeholders accountable to program deliverables and timelines and facilitated transparent program communications. Close tracking of milestones and prompt escalation procedures allowed the project to maintain strong momentum throughout the engagement.
Additionally, the Monticello team supported senior leadership teams and program sponsors with regular program updates including identification of key risks and issues. The Monticello team also developed and managed budgets and funding updates discussed in the monthly Steering Committee meetings.
Case Study Detail
PROJECT BACKGROUND
Financial institutions are frequently under regulatory scrutiny and remaining compliant with regulations is paramount always a top priority for C-suite executives and their Board. The Federal Reserve Bank issued an MRA and found our client lacks adequate firm-wide governance, systems, internal controls, and data quality measures to produce the necessary regulatory reports. Failure to resolve the MRA in a timely fashion could result in a public legal violation, enforcement action, fines, and damage to a bank’s reputation. To remediate the MRA risk and improve the bank’s data quality, regulatory reporting, internal controls, and technology systems, a multiple-year program was set up to plan and execute the action plan and roadmap.
ENGAGEMENT OBJECTIVES
Program Management & Governance: Set up a program management structure and provided oversight to program stakeholders. Facilitated decision-making and resolution of escalated risks and issues.
Designed, built, and operated a Program Management Office (PMO)
Drove ownership, stakeholder commitment, and adherence to deliverable dates on the plan
Managed program issues, risks, and internal/external dependencies
Stakeholder Communication & Reporting: Engaged internal and external stakeholders and informed of the program progress through formal and informal conversations that build mutual trust. Assisted the stakeholders to tackle both expected and unexpected challenges of the program.
Identified program stakeholders and engagement plan through a weekly and monthly program meeting cadence
Facilitated program and deep-dive meetings to drive stakeholder engagement and decision-making
Provided regular and proactive program update in program meetings, SteerCo, and Town Hall meetings
Financial Management: Managed the program’s multi-million budget to ensure program financial health was monitored and actions are taken promptly to address variances.
Provided a monthly program financial update to program sponsors
Monitored financials of the 3rd party internal and external service providers to the program
Assisted Finance to re-balance program financials by adjusting resource allocation and using other measures
BUSINESS VALUE
Given the potential impact of an MRA to the bank, our client’s senior management, including C-suite executives, placed heavy scrutiny and oversight on this program to ensure a successful outcome. By leveraging Monticello’s extensive program management experience and strong stakeholder communication practices our team enabled our client to successfully deliver against a complex set of regulatory directives and internal obstacles. Our deep regulatory knowledge, change management expertise, and proven program management skills, allowed the Monticello team to provide seamless integration into our clients’ efforts to mitigate risks from MRAs and other adverse regulatory findings.
