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The Rules of Operational Risk
7/18/12
Article - Excerpts
Compliance Decisions
Framework
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Greetings!

You may be interested in reading my magazine article:Back
 
The Rules of Operational Risk    
 
It is published in the National Mortgage Professional Magazine. (Free Subscription to our Clients and Subscribers.)

I have provided an excerpt from the article and the download link.

As we continue to undergo profound regulatory changes in mortgage banking, it is more important than ever to identify and mitigate operational risk.

I hope you enjoy this article.

Please feel free to contact us at any time.

Regards,
Jonathan Foxx
President and Managing Director 
Excerpt
Compliance Decisions

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First and foremost, compliance decisions should be made not only on the basis of sound policy and regulatory mandates but also on the basis of how compliance procedures are viewed by regulators. Examiners want to see a financial institution enforcing existing regulatory requirements.

However, they also are not antagonists on a witch hunt. They honestly want to produce the kind of findings - good or bad - that will help a company to thrive. They do not get a thrill out of putting forth adverse findings.
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Excerpt
Framework

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Building a solid framework begins with cataloging the company's people, processes and technology, and continues on into deriving the means by which a stable policy is designed to formalize the way the company tracks operational risk and identifies those risks within the organization's personnel and departments. Tasking, tracking, and managing risk are central features of governance.

Companies large and small should implement operational risk frameworks that formalize their operational risk management. There really is no excuse, in this day and age - especially with ready access to information and guidance - that any size financial institution cannot position operational risk practices into the loan flow process.

Risk can't be managed if there is no framework through which to manage it!
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LENDERS COMPLIANCE GROUP is the first full-service, mortgage risk management firm in the United States specializing exclusively in outsourced mortgage compliance and offering a full suite of services in residential mortgage banking for banks and non-banks. We are pioneers in outsourcing solutions for residential mortgage compliance. We offer our clients real-world, practical solutions to mortgage compliance issues, with an emphasis focused on operational assessment and improvement, benchmarking methodologies, Best Practices, regulatory compliance, and mortgage risk management.
 
This newsletter is free to subscribers, clients, and colleagues, who also regularly receive our free Mortgage Compliance Updates, Compliance ALERTS, and Commentaries.  
 
Information contained in this email is not intended to be and is not a source of legal advice. The views expressed are those of the contributing author, as well as news services and websites linked hereto, and do not necessarily reflect the views or policies of Lenders Compliance Group, any governmental agency, business entity, organization, or institution. Lenders Compliance Group makes no representations concerning and does not guarantee the source, originality, accuracy, completeness, or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented herein.
 
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