Case Study

Best-in-class quality assurance and supplier risk management implemented across 55 countries within six months for major U.S. commercial lender

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Client:
Leading U.S.-based commercial lending and leasing company

Industry:
Financial services

Business need:
Review of client operational sites worldwide; design and implement a quality assurance (QA) program that is fully compliant with industry best practices and in line with regulatory standards.

Genpact solution:
Conducted a design and operational review of more than 40 client sites; designed and implemented a QA operating model with enterprise-wide Supplier Risk Management (SRM) controls with monitoring and reporting dashboards.

Business impact:

  • Cost and margin pressure
  • Risk and compliance
  • Standardization and simplification

Stringent regulations, increased oversight, and design gaps in its defined SRM processes, policies, and procedures put this major U.S.-based commercial lending and leasing company at risk of non-compliance. Within six months, Genpact designed and implemented a QA target operating model built on proven industry best practices, delivering 50% savings in QA operational costs through an offsite, remote execution methodology.

Business challenge

The lender needed to strengthen its SRM framework to accommodate leading industry practices and regulatory guidance, such as OCC Bulletin 2001- 47 and Federal Financial Institutions Examination Council (FFIEC) requirements. With 65 operational sites in 55 countries and 150,000 suppliers, the company needed a coherent compliance monitoring and reporting program to overcome challenges such as:

  • Low awareness of SRM requirements and regulations among the company’s 5,000-plus end users and program stakeholders
  • Incorrect interpretation of SRM requirements
  • Lack of communication to stakeholders regarding their roles and responsibilities
  • Design gaps in defined SRM processes, policies, and procedures
  • No program health monitoring metrics or heightened risk monitoring

Genpact solution

Genpact designed and implemented a compliant quality assurance framework within six months that lowered QA operational costs by 50%. We took a two-step approach to the client’s requirements:

1. QA framework design

  • Review and understand the current SRM framework and associated regulatory requirements
  • Conduct stakeholder workshops to facilitate an understanding of QA objectives
  • Articulate a QA strategy and work program to include a QA calendar, MIS/dashboard framework, QA issue rating mechanism, QA issue tracking and resolution process, operational/design assessment test scripts, and controls and governance framework

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2. Operationalize the QA function

  • Conduct risk profiling exercises for the 65 operational units
  • Conduct a design and operational review, leveraging technologies for remote execution
  • Maintain an issue log and track remediation status
  • Report review results to local and headquarters-level stakeholders, including the client’s Operational Risk Committee
  • Continuously monitor and control high-risk suppliers by developing functional-level execution and business-risk metrics
  • Monitor high-risk suppliers with a well-designed supplier review program
  • Design and maintain enterprise-wide SRM controls monitoring and reporting dashboards

Business impact

  • Developed and implemented a best-in-class QA program, driving compliance to nine policies, procedures, and standards across 65 operational units in just three months
  • Conducted a design and operational review of more than 40 operations units in four months across locations around the world
  • Saved 50% of QA operational cost through an offsite, remote execution methodology
  • Implemented enterprise-wide SRM compliance reporting to the client’s Operational Risk Committee
  • Recommended/incorporated industry best practices for enhancing SRM practices within the client’s organization
  • Developed and implemented a best-in-class control and monitoring division to raise timely alerts for any adverse impact on the organization due to potential supplier failures

For more information, contact: cfo.services@genpact.com and visit, genpact.com/what-we-do/business-services/enterprise-risk-compliance/third-party-risk-management

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