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Tracking the True Technology Cost of Compliance, Regulation & Risk
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IvySchmerken
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IvySchmerken,
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7/31/2014 | 11:46:37 AM
Re: Crippling compliance costs
Based on Dr. Rubin's analysis, regulatory compliance and risk has added about $4 billion in costs for the aggregate Bank of Banks, while revenue has declined. Technology expenditures are also going up due to new products (i.e., mobile) and infrastructure/storage, but compliance is the big cost driver. And yes, as you say, the proliferation of regulations is not stopping. It seems like the only way to save expenses is to reuse the same infrastruture and applications for these multiple regulations, to whatever extent this is possible.
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
7/30/2014 | 6:56:02 AM
Crippling compliance costs
The cost for compliance that you outlined in this article is simply crippling. And it doesn't seem as if there is an end in sight to the increase in compliance costs.

The regulators are not going away...in fact they are ramping up oversight in many areas. As you mention, the only way to battle the increasing compliance costs is to somehow get a better understanding of technology spending and find ways to be more efficient. A tall order, for sure.


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