Eighteen months ago Intreis first published our blog discussing the merits of Performance-Based Controls Design™. We challenged businesses to demand more from their controls. Intreis founders have understood since 2004 that the same internal controls you depend on to ensure compliance, such as SOX, HIPAA, PCI, and GLB can enable higher levels of performance for your core operations and service delivery teams. We understood then, and we understand now, that without Performance-Based Control Design™, businesses would be crushed under the weight of regulatory requirements. This week the rest of the world caught up with us.
This week (8-12-14) Forbes published an article entitled: Regulatory Environment Has More Impact on Business than the Economy, Say U.S. CEOs
According to the Forbes/KPMG survey:
“The regulatory environment is now the top issue that can have the most impact on a company, according to 400 U.S. CEOs.”
“Thirty-four percent of CEOs are spending more time with regulators or government officials, or considering doing so.”
According to CEO’s surveyed:
Prosperity Bank’s chairman and CEO, David Zalman, “I’ve been in banking since 1978, and today, probably over half of my time is spent with regulatory requirements. The regulatory burden is a threat to traditional community banking.”
PG&E chief executive, Anthony Earley, “As CEO, most of my time is spent on regulatory issues.”
Performance-Based Control Design™ Manages Risk AND Improves Performance
Here’s where it gets interesting….and…well….a bit deja vu. Tim Zuber, regulatory center leader at KPMG states:
Considering that the CEOs and their organizations already focus on the regulatory issues, it makes sense to derive value out of new regulatory compliance processes. “One way to do so is to take data and insights, that in the past have been used almost exclusively for compliance purposes, and use them to drive additional value.”
Tim, Intreis completely agrees. Thank you for helping us spread the word. We’ve been helping companies do this for years. The founders of Intreis have known for over a decade that you can design a control that manages risk AND improves performance, and you can achieve this through Performance-Based Control Design™. In fact, we felt so strongly about this concept that we built a company around it.
Performance-Based Control Design™ is a paradigm shift in the way we look at controls. Performance-Based Control Design™ takes all aspects of your business into consideration; the industry you work in, the clients you serve, your business objectives, and your IT operations. Performance-Based Control Design™ is not about avoiding controls, but rather harmonizing your controls to be in tune with your business. Controls applied at the right time, in the right places, and with the right intensity, not only improve performance but reduce costs, improve business agility, and help you effectively manage risk.
“Performance-Based Control Design™ demands that improved performance be a necessary outcome of effective control design.”
Choose Technology that Supports Control Design
Technology plays an important role in supporting Performance-Based Control Design™. Intreis has chosen ServiceNow as its platform-of-choice for bringing Performance-Based Controls™ to life. To make your controls work for your business, they must be embedded IN your business. Service automation and automation of operational processes are both inherent to the ServiceNow platform. Combine this with ServiceNow’s built-in GRC capabilities, and designing a scalable and cost-effective regulatory program, that also improves corporate performance, is in everyone’s reach.
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If you still look at controls as something that slows you down, don’t be misguided. Controls done correctly can be your most powerful performance weapon.
