One of the most important analyses that can be undertaken by a financial institution, market, market infrastructure or competent authority is the “what just happened,” analysis.  Why did the existing system of controls and procedures fail to identify, or fail to intervene early enough to address, a critical risk, malfunction or gap, and how can the structure of the oversight system be retrofitted, enhanced or restructured to attempt to avoid a similar future failure or mishap.

Such analyses require (i) knowing how the existing system was supposed to function, which parts were implicated and if legacy systems or procedures were involved and (ii) understanding the existing mitigation, continuity and resolution plans intended to be available to avoid, recover from or resolve potential failures.

ALIGN can help you review both in-house procedures and out-sourced functions with relevant purveyors. It can assist internal operations to identify where the help of external experts is necessary and help develop a strategy to uncover why and how untimely discovery of risks, misconduct, and substantial loss occurred and whether existing exception reporting and rescue procedures had gaps. Exposing the genesis of specific types of failures can assist staff and experts in developing solutions to address observed weaknesses and to overcome internal and external stakeholder resistance to operational change.

ALIGN can provide candid advice on a confidential basis and observations of potential operational issues can be used to design training exercises or to improve communications among the complement of in-house and outside contractors who provide oversight and regulatory compliance services.