10:23 AM
Societe Generale Deploys MetricStream for Compliance Risk
As rogue trader Jerome Kerviel awaits sentencing, his former employer, Societe Generale, is implementing compliance risk assessment software from MetricStream. Although it's not clear whether the software will specifically be used to monitor large trades and thus be capable of catching reckless trading, it will be used to integrate risk assessments across countries, functions and processes, the bank says. The first phase has been rolled out in France and the UK for the corporate and investment banking division.
Societe Generale is one of the largest banks in the world with operations in over 80 countries. The bank focuses on three main areas of banking – retail banking and specialized financial services, corporate and investment banking, and global investment management and services.
The bank plans to use the MetricStream software to assess and manage risks, establish and monitor controls and meet the demands of regulations across its vast multi-country operational network. MetricStream has delivered the bank a complete end-to-end workflow automation system for the compliance risk management process, along with unique capabilities such as integration of regulatory content with the compliance workflow.
Chris Davis, head of compliance at Societe Generale, was delighted with the results. “We believe we are the first global bank to conceive and implement an enterprise-wide Compliance Risk Assessment and Management platform — it is a model in technology advancement that will potentially be a benchmark in the industry for how complex compliance challenges can be managed effectively. We did experience a certain apprehension before embarking on this initiative due to its magnitude; however, our fears were quickly dispelled with MetricStream's proficiency in delivering a solution architected in line with our vision and expected benefits.”
The software will allow the bank to set up compliance risk dashboards that use risk heat maps and color-coded charts to provide increased visibility into the bank’s risk profile across the enterprise, action plans that are triggered from the risk assessment process, compliance risk reports that allow for comprehensive tracking and reporting of compliance status, compliance/business action plans and changes in risk rating over a specific period of time. It will also let the bank set up alerts and notifications via emails and task assignments, allowing managers to proactively track compliance regulations, track issues and apply corrective measures.