Outsourced controls testing transformation for a large regional bank

Challenge 

A large regional bank faced increasing pressure to rationalize and validate its control environment, particularly for controls rated as high or very high risk. The bank needed to ensure that control descriptions aligned with firm standards, eliminated redundancies, and established a final inventory of controls across 21 Risk Assessment Units (RAUs).  

Facing limited internal capacity and a tight timeline, the bank sought a strategic partner capable of delivering a full-scale controls testing transformation—without compromising quality or consistency. 

 

Approach 

Guidehouse implemented a hybrid delivery model, leveraging both offshore and onshore teams to accelerate the control rationalization and testing process.  

Offshore resources led the initial review of control populations—identifying duplicates, parsing and simplifying complex controls, and rewriting descriptions to align with firmwide standards. Onshore teams provided quality assurance, monitored progress, and coordinated with the client to maintain alignment on control validation standards.  

Within a month, the combined teams developed test plans for over 500 high-risk controls, established sampling methodologies, and executed testing aligned to the enterprise RCSA framework. Weekly performance reporting provided transparency and supported ongoing and agile planning. 

 

Impact 

With a finalized and validated control inventory, the bank gained a clearer view into its operational risk landscape and strengthened its control environment for long-term resilience.