- Corporate Security
- Governance, Risk & Compliance
- Information Security
In December of 2016, Street Capital Bank received approval of their Schedule I bank license. With this, they began their next phase of growth by building upon their relationships with mortgage brokers and their base of over 130,000 valued customers.
As with most banks, Street Capital Bank is under the microscope of the regulators. The significant difference here; they are smaller than the big banks. Unfortunately for Pam Huggler, Chief Compliance Officer at Street Capital Bank, and her team of two compliance staff, being smaller doesn’t mean they have it any easier.
“When it comes to compliance costs, they really are fixed, regardless of the size of your bank,” states Pam. “This makes setting up a program to enable you to comply with bank requirements more difficult for smaller banks than for large banks. If you are not efficient at a big bank, you make a little less profit at the end of the day. If you are not efficient at a small bank, you go out of business.”
Because compliance and risk management have large fixed costs, Pam needs to ensure her team is relevant to the business. This means that her compliance program must run as efficiently as possible. “To achieve this efficiency, we use Resolver’s Compliance Management software to centralize our information so that we don’t have to jump around and cut and paste in numerous Excel spreadsheets,” states Pam.
Pam Huggler is no stranger to compliance management. After joining Street Capital five years ago, she has built their compliance department from the ground up. Pam’s team started working with Resolver in 2013. They use Resolver for compliance management, policy management, vendor risk management, and model risk management. Street Capital Bank also uses Resolver’s compliance management software in conjunction with Resolver’s regulatory compliance content subscription, which provides Street Capital Bank with compliance content that is specific to their operations.
“Compliance, it’s about process,” states Pam. “Compliance professionals, we are like Romans, we need to build a road and stay on that road. We can change what it looks like and where it goes, but we must build a consistent process that everyone can follow.”
Street Capital Bank moved forward with Resolver for Compliance Management to build this consistent process. “Unless you never wanted to sleep, you need software to do this,” states Pam. “Resolver gives Street Capital the blocks we need to build consistent process.”
The implementation was very collaborative. “Resolver provided excellent support in order to implement and we feel confident in our ability to move forward and manage these processes going forward.”
“Look for software that gives you a place to start, but also gives you the flexibility to expand,” suggests Pam. “This is important because you don’t always know where you are going to end up. We knew the customizability of Resolver and the option to expand into risk management in the future would ensure we could get where we wanted to go.”
“By replacing spreadsheets with Resolver, we gained the ability to aggregate this information, without giving up sleep or our lives to do so,” says Pam.
When Street Capital first approached Resolver, their goal was to be able to present the state of compliance risk to the board and senior management, with assurance that the data being presented was accurate and complete.
“The data we get out of Resolver allows me to demonstrate where we are compliant, where we are not, and for the areas that we are not, we can clearly show why,” states Pam. “You would need 50 spreadsheets and 30,000 VLOOKUP’s to get all that information and present it using Excel spreadsheets. With Resolver, I can say in real time how many controls exist where the control owner has said that the inherent risks have been accepted—and that it has been accepted for compliance. For all those controls, I know the inherent and residual risk.”
“I love to bring order out of the chaos,” says Pam. “Resolver gave us the power to design an automated process where there was once chaos.” By automating Street Capital Bank’s compliance process with workflow and email notifications, Pam no longer has to spend her time checking in with control owners and following up on action items. Instead, she can spend that time more strategically by looking for ways to improve the compliance at Street Capital Bank.
“Getting enterprise risk management to transition to Resolver,” says Pam. With the overlap between the two departments, they would like to bring the risk management group onto Resolver’s Enterprise Risk Management software.
Bringing the risk management group onto Resolver’s software will help Street Capital Bank connect risk management data directly to their compliance data. This sharing will promote a more efficient and accurate risk-based approach to compliance, allowing Street Capital Bank’s team to improve enterprise-wide compliance issue prioritization and minimize the risk of non-compliance.