This paper identifies the extent to which redundancy exists among the regulations associated with the operational risk management environment of financial institutions and recommends ways for financial institutions to decrease or eliminate redundancy in the related operational risk compliance processes. This paper was commissioned in October 2004 by members of BITS Operational Risk Management Working Group and The Financial Services Roundtable’s Anthony T. Cluff Fund and was prepared by KPMG LLP
New laws and regulations are frequently enacted in response to topical and systemic events. While laws may establish important regulatory compliance requirements, the evolution and convergence of overlapping laws that share common or at least similar intent can lead to the establishment of cumbersome and differing compliance responsibilities. This degree of complexity depends on the nature of an institution’s operations, and the controls they must have in place to mitigate operational risk.