The essentials of change management
Towards the end of last month, the Federal Reserve published their latest Consumer Compliance Outlook. This issue of the publication includes articles on change management and vendor management relating to flood insurance as well as some recent news and court decisions. Today’s blog provides a summary of the article on change management.
In 2016, NCUA signed on to an updated version of the FFIEC’s Uniform Interagency Consumer Compliance Rating System(rating system). Effective March 31, 2017, the rating system is designed to evaluate compliance with the various consumer protection laws and regulations. The FFIEC includes change management as one factor in the rating system and urges examiners to evaluate the “effectiveness of the institution’s change management processes, including responding timely and satisfactorily to any variety of change.”
Considering this factor of the FFIEC’s rating system, the Compliance Outlook article explains “changes from external and internal sources are inevitable, and creating a change-resilient compliance management program is critical to success.” The article goes on to identify three examples of external and internal change that require implementation of effective change management:
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