Banks are incurring significant costs to ensure compliance with evolving regulations by layering controls and resources onto increasingly complex and inefficient processes. To reduce this burden, Guidehouse’s Brad Schaltenbrand and Christopher Sicuranza recommend that banks proactively rationalize their internal control structure, taking a holistic approach and incorporating Lean Six Sigma principles.
Key Lean Six Sigma principles entail:
Focusing on improving customer satisfaction
Reducing process variation
Understanding and improving process flows
Eliminating waste (non-value-adding activities) from processes
These guiding principles are the foundation of the authors' recommendations in this paper.