CODUDE – Collaborative change
Ripalda Ciero of MYRIAD Group Technologies explains that with a change in the business environment comes a need to change activities, processes and solutions
It is commonly accepted that the business environment encountered by today’s Network Managers has changed over the last few years. Network Managers have had to adapt to new challenges and in turn, this has changed the Network Manager’s role in the financial services industry. With a change in the business environment comes a need to change activities, processes and solutions. Change begets change.
One notable development in the Network Management space is the requirement to assess risk in a transparent manner; therefore, adopting a well thought-out and articulated Due Diligence programme is essential for Network Management teams. The time and effort required to identify, develop and train individuals to be able to define such programmes may prove to be costly and difficult to measure. Certainly, amid changing regulatory requirements, Due Diligence programmes are themselves subject to constant review and refinement. Likewise, establishing consensus amongst all parties involved in Due Diligence can be a monumental task, considering the varying perspectives of legal, tax and audit departments, notwithstanding any personnel changes that may emerge.
Once the framework for Due Diligence has been established, additional resources are required to action the process. Whereas in the past, a well-regarded relationship and a small set of Q&As may have sufficed for a complete Due Diligence cycle, today it requires much more. More company resources and more effort from the Network Manager are called upon. Detailed documentation coupled with on-site visits are the new norm for any Due Diligence cycle, as is the analytic review required before completion and sign off.
The change in focus for a Network Manager, along with the ever-changing regulatory landscape, has worked to bring about change in the Network Management community and the wider financial services industry. Change has been both positive and innovative as the community has worked collaboratively and shared knowledge amongst peers to standardise Due Diligence in the financial industry, e.g. industry standard questionnaires. The sharing of invaluable expertise to identify and assess the questions that must be asked for sound Due Diligence is not to be understated. It is a testament that the community acknowledges that Due Diligence cannot take place in silos.
Acknowledging that Due Diligence must be a collaborative effort has also driven change in the technology space. For a technological solution to be viable for today’s Network Manager, it needs to embrace standardisation and collaboration within the industry. Additionally, a technological solution is also required to be flexible, allowing individual institutions to tailor and meet their internal bespoke Due Diligence requirements. Adapting any new technology solution on offer may then drive further change to the Network Manager’s role and to the industry itself. Thus, the true nature of change itself is revealed, always cyclical and constant which allows for clever solutions to tackle change seamlessly and without hesitation.