Regulatory & Operational Risk Management

OPPORTUNITY

The CCO of a $7B AUM investment adviser requested assistance managing the firm’s compliance program and testing plan in a way that assessed, incorporated, and mitigated regulatory and operational risk.

Despite meeting the regulatory expectations under Rule 206(4)-7, the compliance program continued to operate as a reactionary business function, thereby impeding its ability to provide strategic value to the firm.

PROCESS

ReGroup conducted a formal risk assessment of the firm’s regulatory and operational risk areas using a proprietary risk assessment tool. ReGroup prioritized the resulting risk areas based upon the firm’s business practices and developed and calendared mitigation strategies and plans. ReGroup created a presentation for the firm’s executive management outlining a strategic plan for risk assessment and mitigation.

RESULTS

Senior management responded positively to the CCO’s delivery of a clear risk mitigation strategy by allocating additional resources to support the compliance program.

The CCO is better positioned to anticipate and respond to regulatory requirements and events and now leads the firm’s enterprise risk management.