All Signs Point to... Maybe? Mastering Compliance Through Uncertainty

Governance, risk and compliance (GRC) professionals in highly regulated industries like financial services are accustomed to the hustle and bustle of erratic legislation and the chaos of ever-changing rules, contentious comment periods and postponed effective dates. Wait-and-see becomes the order of the day. These times of uncertainty are a bit like shaking a Magic 8 Ball. When answers rise to the surface, they’re still a little foggy and not all that prescriptive.

There is an upside to an environment active with changes. Most GRC leaders naturally lean toward a specific discipline. But when across-the-board uncertainty is at play, this inclination gets tempered. GRC leaders become untethered from a particular focus and must think big picture. This evolution in mindset is excellent for the professional development of the leader and results in well-rounded GRC expertise within the credit union.

GRC leaders who want to leverage this period of wait-and-see to improve their contribution to the credit union should focus on five key strategies:

1. Meet Uncertainty with Practicality

The idea here is to control the controllables. Identify areas that can be strengthened regardless of pending regulations. A few good focuses include internal policies and procedures, staff training and audit readiness. This is also a good time to review business continuity plans to ensure they are flexible enough to protect the credit union during a variety of possible futures.

2. Intentionally Maintain Agility

GRC leaders should view policies and procedures, processes, and training modules through the lens of adaptability. Staff members sometimes find it challenging to quickly adjust as new regulations and new risks emerge. A tabletop exercise is a great way to easily spot hidden areas of rigidity. Another component to investigate is whether current workflows enable fast action. If not, now is the time to explore possible improvements, such as opening new lines of communication between the compliance team and leadership or streamlining collaborative decision-making processes across silos. 

3. Work Smarter with more Efficient Resources

Quiet periods present the optimal time to review human or technological resources. Although it may seem counterintuitive, a period of fewer demands on a GRC team’s day-to-day can be an optimal time to recruit and onboard new team members with specialties that align with the credit union’s strategic growth and innovation goals. It may also be a good time to onboard compliance management software and/or integrate automation tools to reduce manual workload. Both initiatives are more manageable when high-intensity distractions are at a minimum.

4. Communicate Early and Often

A strategic communication plan supported by well-designed GRC workflows ensures the credit union isn’t caught flat-footed when change comes fast. Such plans are also critical for bringing stakeholders together before change. Institute regular check-ins with leadership, legal teams, product owners and operational staff to foster trust and communicate the potential risks and regulatory developments the compliance team is monitoring.

5. Invest in Continuous Learning

When GRC priorities are likely to shift, savvy leaders take proactive steps to build contextual knowledge. For credit unions, this may mean evaluating member experience trends or banking innovation on the horizon by actively engaging in education opportunities across disciplines. With a deeper understanding of the forces shaping the industry, GRC professionals can more effectively anticipate regulatory shifts and respond with agility.

For decades, GRC experts have proven effective at reframing challenges as opportunities. In today’s environment, they will no doubt find many ways to turn the disruptive challenge of uncertainty into an opportunity for growth and adaptability. By staying active and informed, GRC leaders will mold unpredictability into an advantage, ensuring their credit unions remain resilient regardless of the changes ahead.