Beyond compliance objectives

IT has made a huge impact on the way organisations operate, particularly in lowering costs, driving revenue and mitigating risk. But according to Scott Sloan of BMC Software, it is not just a matter of which IT systems to use, it is how effectively they are deployed.

Like it or not, compliance is now woven into the fabric of almost every large IT organisation. With regulations such as Basel II and other data protection laws, many critical aspects of business processes must be re-examined and retooled. Critical retail banking business processes are dependent on IT, so IT processes that affect the IT infrastructure must be standardised, documented and controlled.

Many approaches used to implement IT general controls require significant investment in consultants who both understand the complex regulatory requirements and can help manage the transformation of IT processes to a controlled and audit-ready state. BMC Software offers a range of solutions that implement systems-based controls, helping IT organisations to:

• Adopt a process control mentality - with a focus on people, data and infrastructure controls
• Utilise systems-based IT controls - to automate the most challenging control activities
• Drive value beyond compliance - to improve operational efficiency of automated IT processes

Value beyond compliance

For many retail banks, round one of regulatory compliance unfortunately may mean a lot of time and money spent for little return. Compliance requirements are a new burden that IT must deal with and integrate into its 'new' standardised processes. Despite early planning and the best intentions, deadlines are forcing organisations to do whatever it takes to become compliant with new governance standards. These deadlines should be viewed as key milestones not only along the regulatory road, but also towards a more mature, efficient, and effective operation.

IT organisations will be required to demonstrate adequate controls for the infrastructure supporting material financial systems. Meanwhile, they should be looking towards an automated and sustainable IT compliance programme that reduces the time and resources spent on the next audit and improves the efficiency and effectiveness of core business processes.

Data management and recovery controls

One cannot speak about compliance measures without considering proper data management and controls. Since most key financial processes are accessing data and databases, compliance initiatives will bring visibility and new demands on data management practices. Questions to be raised include: how are systems validated and tested before being placed into production?; how are application and database changes controlled and documented?; are service level agreements being actively managed?; are data assets being appropriately secured to prevent issues such as unauthorised use, disclosure and modification?; how is data being backed up and secured?

Process control

By necessity, especially in the banking sector, IT strategy and business strategy are more integrated than ever. During the late 1990s, at a BMC customer conference, the keynote speaker from the Gartner group said that: 'Processes are more important than tools.' The gasps and post-speech buzz were clearly audible as the event leaders and management attempted to cope with this suggestion. After all, they were in the business of selling software.

Achieving and maintaining compliance, be it Sarbanes-Oxley or Basel II, requires merging people, processes and technology into a unified, enterprise-wide compliance effort. Standardised tools can be a catalyst for a better process, which when documented, can drive operational efficiency, reduce costs and lower risk. Teaming with BMC Software can allow an organisation to automate its infrastructure and minimise the costs of this risk reduction, without losing focus on real business priorities.

Activating business with BMC

Continuous assessment implies an opportunity for continuous improvement. The banking industry has profited greatly from its belief that IT can contribute to business success. For the past 25 years, BMC Software has been partnering with the world's largest banks to help identify and produce measurable advancements in business performance. CIOs must manage their organisation as a business, integrating IT (organisation, projects and technology) with business goals and measuring performance against these goals. ERF

Further information

BMC Software Ltd
Tel: +44 1784 478 000
Fax: +44 1784 430 581
Email: scott_sloan@bmc.com
Website: www.bmc.com