GRACE - ORM for Custodians

Heightened scrutiny of investment firms by regulatory authorities due to the Ponzi schemes, insider trading and changed market conditions has brought about greater requirement of transparency from investors and regulators.

Custodian organizations have to ensure that their internal operations and processes are sound and are available for audit and scrutiny whenever asked for. Good internal operational risk management practice with adequate and comprehensive policies and procedures and proof of their conformance seen from assessments and audits have become necessary information to be provided in order to win and sustain business as well.

The Managed Fund Association (MFA), Presidents’ Working Group (PWG), and Alternate Investments Management Association (AIMA) put together guidelines for the Alternate Investment industry for Operational risk management in early 2009.

GRACE-ORM has been created with the best practices suggested by these associations and the SEC’s Examination Focus Document 2009.

GRACE-ORM with its SaaS (software as a service) model helps you quickly put together a continuous risk assessment and monitoring process for all of these processes to enable you to identify problem areas and take remedial action in a business as usual way. It enables you to produce proof of your process in a visible way to the regulators during examination and proof of the best practices implemented in your organization to your investors. It brings you competitive advantage and attractiveness to investors as a well run organization that can answer the operational due diligence questions posed to them satisfactorily.With its SaaS model it enables you to rapidly deploy the solution on a global scale without limitations.

GRACE-ORM for custodians helps you put together your internal processes in a central place and provides you web based access to the information. It provides you the infrastructure for you to build with:

Be ready for examinations and audits at all times

Be able to provide the information on their internal processes to the funds for their audit and examination process

Be operationally efficient in the risk and compliance management by consolidation of all information

centrally. Having them spread out in multiple excel files, documents and paper trails makes the process inefficient and labor intensive to retrieve and produce it for audit

Help senior management be confident that they are conforming to their fiduciary duties

Implement best practices in risk and oversight management and be able to provide the correct risk information to investors

Gain competitive advantage with investors as a well risk managed organization

Have integrated view of risks across Business Operations, IT and Compliance Processes. This allows you to focus on the key risks quickly

Have real time view of risk, exposures and losses allows you to see the size of the problem and alerts you to put mitigation action in place

Early identification and control reduces cost of mitigation

Be able to search and retrieve information with least time and cost for audits and assessments

Have better internal control, regulatory compliance & enhanced predictability

Build ownership, responsibility and accountability for risk and its management

Institutionalize the risk management process

Own the knowledge in the enterprise and not lose it when key people leave

Policies & Procedures

Policies and procedures repository where you can add, update, review and release policies, procedures, disclosures
Version histories and provides access to the latest policy and procedure to the organization

Assessments & Audits

Calendar for assessments & audits
Audit and assessment checklists
Manage the assessment and audit planning and review process
Monitor the progress of assessment and audit execution and collect deliverables when ready through project and task reporting
Record findings,do impact analysis, identify the risks from the findings and establish a process for risk mitigation
Help monitor the tasks and costs of the risk mitigation process till closure
Provide task reporting of mitigation tasks, and project reporting to monitor the progress of mitigation projects
Provide for a standardized risk scoring, review and risk reporting on for each risk
Provide a mechanism for you to build standardized checklists for audits and assessments that can be reused for each subsequent audit and can be changed to suit the particular audit
Provide alerts on due dates, over dues and late dues in activities and tasks

Due Diligence

Perform due diligence through standardized checklists for investor, investment firm, fund, counter-party and vendor due diligence
Provides processes for recording of due diligence information and review of the due diligence findings
Provides alerts for periodic due diligence assessments and helps you conduct these assessments in a standard way, and review findings
Builds a repository of all the due diligence information collected

Internal Controls Management

Functions for internal control definitions
Process for monitoring the internal control through test definitions, periodicity of testing and reporting
Process for test issue reporting and review to bring to light the issues and risks early
Process to create mitigation strategies for the issues and risks identified and monitor the mitigation progress
Information on all issues and trends in each internal control

Loss Monitoring

Record of losses in operations and loss classification
A method to monitor loss mitigation / control

Interface with operational reports

It provides an interface to bring in key operational MIS and exception reports and a method to mark risks from there and escalate them where necessary

The Dashboard

The powerful dashboard brings together the umbrella of all information related to risk
Allows deep drill down on all information across due diligence, assessments and audits, losses, internal controls and tasks associated with management of the risk and reports on mitigation task status
Slice and dice of information to bring different trends to view
Queries and Reports that can be exported to Excel / PDF formats