Welcome to this special podcast series, In Conversation with K2 Intelligence FIN Jeremy Kroll on GRC Risks, Strategies, and the Future, sponsored by K2 Intelligence FIN. This week I have visited with K2 Intelligence FIN, Chief Executive Officer (CEO) Jeremy Kroll on GRC Risks, Strategies, and the Future. Over this week, we have reviewed the current Governance, Risk, and Compliance (GRC) landscape, looked at GRC at work, considered GRC and the investment community, reviewed GRC and K2 Intelligence FIN and today, in Part 5, we conclude with a look at GRC then and now.
I found most interestingly that Jeremy Kroll believes one of the key mainstays of GRC is something that many compliance professionals are only now coming to realize, which is that proactive compliance is more effective and more cost effective than reactive compliance. With the addition of technology, it is possible to do things not only more quickly and more efficiently but in a much more cost-effective manner. Jeremy Kroll noted, “What we’re seeing is the velocity of data available, the increasingly important role of technology, coupled with a multi-disciplined approach within organizations to create governance, frameworks, risk management techniques and abilities, and compliance programs that are even more essential now.”
Moving forward, compliance and ethics as well as GRC professionals, who are living and breathing the mission every day, are more fully operationalized down to the front lines. It is these risk management professionals who will be the ones first identifying the risk and risk management strategy. As Jeremy Kroll noted, “This will help you to flatten the curve and that risk particularly to your reputation or your business. I would say, come on over the water’s warm here, we’re growing very quickly. And I think as a proof point, the investment community is showing up every day at our doorstep. And they’re also thankfully investing in a lot of other businesses in our field and technology, RegTech, CompliTech, also professional services and advisory.”
We ended by agreeing that GRC is going to be one of the most exciting areas, including the outsourcing of compliance, which also includes training and education. Here Jeremy Kroll said, “we are taking people who are already in their forties, fifties, or even sixties, and we’re retraining them. And so, pivoting and making a career change and growing in this field, this is a growth field and we want that wisdom. We want that judgment. We want that business or life experience. And you can couple that with young employees and technology enablement, and then you can add tremendous value to clients.” It really does not get much better than that.
Check out the LinkedIn page for K2 Intelligence FIN here.
Check out the K2 Intelligence FIN website here.
Tag: K2 FIN
In this five-part podcast series, sponsored by K2 Intelligence FIN, we consider defining and building effective compliance programs. I am joined in this series by Michelle Goodsir, a Managing Director at K2 Intelligence, and Gail Fuller, Financial Integrity Network (FIN) Vice President. Michelle has 25 years of financial crime compliance experience which includes fraud risk management, anti-bribery and corruption, corporate security and investigations, sanctions, and Anti-Money Laundering (AML) program experience working within the financial services industry and the US government. Gail focuses on developing, refining, and implementing FIN’s quantitative and qualitative risk rating tools. She leads engagements focused on helping FIN’s jurisdictional and private sector clients understand their exposure to financial crime risk and develop and implement strategies to mitigate their risks.
Over this series we will consider key challenges in compliance, why compliance needs a seat at the table, how to do compliance on a budget; training and culture and what is on the horizon. In Part 2, Michelle and I discuss why compliance needs to be an integral part of your business strategy going forward.
- What has evolved recently in the landscape that has made the role of compliance more challenging? There has been a plethora of guidance from different regulators to address emergency situations; managing costs; reviewing alerts in a timely manner.
- You mention that Compliance is often seen as an overhead cost – why should entities think of it differently? There are a variety of costs around the following, enforcement action costs vs. cost of compliance; operationalizing compliance; building compliance in from the beginning vs. retrofitting a program to maintain compliance; outsourcing compliance.
- How can organizations make sure compliance protocols are carried out every day? Through a variety of tactics including regular training, communication, action; culture of compliance; tone from the top; compliance at business meetings.
Resources
K2 Intelligence financial crimes risk & compliance page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance
K2 Intelligence AML page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-money-laundering-compliance
K2 Intelligence Anti-corruption page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-corruption
K2 Intelligence DOLFIN: https://www.finintegrity.com/dolfin.html
