- Former Managing Director and the Head of the Regulatory Management Team for JPMorgan Chase & Co. responsible for coordinating the firm’s internal dealings with supervisors and regulators globally.
- Designed and managed the firm’s Corporate Operational Risk function; and, prior to that, served as the firm’s Senior Credit Officer. He also was the General Manager of the Singapore Office and Regional Head of Credit for Asia Pacific. He was the Global Head of Credit Research and served for a time in Tokyo as the Head of the firm’s M&A Advisory function.
- Bank Supervision and Regulation Division of the Federal Reserve Bank of Cleveland.
- Founding member (JPMorgan) and Chairman, Operational Risk Data Exchange Association (ORX)
- Vice Chairman of the Board of Trustees of Case Western Reserve University and serves as Chairman of the Finance Committee.
- All 7 Best Practices
- Pre-Meeting Discovery Process
- One-on-One Call with Expert
- Meeting Summary Report
- Post-Meeting Engagement
Regulatory Management Strategies for Financial Institutions
Risks & Opportunities
Financial institutions that underperform with respect to regulatory management strategy run the following risks:
- Significant fines: Fines in the tens of billions or at least hundreds of millions are not unknown.
- Restricted activities: Firms that are not attentive to regulatory requirements might find that they are not allowed to expand, to open branches, to make acquisitions, to pay dividends, etc.
- Increased scrutiny: Poor attention to regulatory hygiene invites heightened suspicion and even a presumption of guilt the next time the regulators come calling.
- Weak internal business processes: If your company's processes are not working to produce well for regulators, they are likely to also underperform for other stakeholders as well.
- Bad press around regulatory management that invites the markets to turn on them: Companies that have a reputation for poor compliance risk the wrath of financial markets. Poor regulatory strategy can show up quickly in the share price or on the earnings statements.
Financial institutions that perform well with respect to regulatory management strategy have the following opportunities:
- Well-controlled businesses, business processes and management: Firms that perform well with respect to the regulatory regime also tend to have tight business processes that serve shareholders, management, employees and customers.
- Improved financial performance: Upfront staffing and related expenses can save a multiple of costs associated with noncompliance, losses and regulatory fines.
- Being well-positioned when new regulations are issued: A strong regulatory management strategy, along with the associated best practices, position a firm well for addressing any incremental regulatory requirement changes.
- Good reputation and credibility with regulators: A firm with a good regulatory track record has a better chance of cultivating a partnership with regulators as opposed to a toxic relationship which can easily turn against the company.
- Opportunity to help regulators shape policies and regulations: Companies with a solid regulatory management capability are often sought out by regulators for their input with respect to regulations or financial policies.
- Opportunity to step in if an institution elsewhere has failed in its regulatory duties: Players who are responsive to regulators are often called in to help when another financial institution, for example in another state, has run into trouble.