Banks, insurance companies and financial institutions in general are required to demonstrate that they have a functioning and appropriate instruction system or organizational manual in the form of “Set Guidelines”. The set guideline is used by financial institutions to meet legal requirements and to ensure proper business operations on an ongoing basis. For over 20 years, the highly regulated world has relied on DHC VISION as a modern, smart and reliable management system for organization and quality management to meet complex compliance requirements.
For the regulated financial industry, DHC VISION also provides optimal support for digitizing all standardized documentation. Especially in times of a decentralized working world with home office arrangements, relevance in this area rose to a new level.
What do set guidelines contain?
The set guideline requirements are not new and come from the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, Bafin). It is essentially formulated in the Minimum Requirements for Risk Management (Mindestanforderungen an das Risikomanagement, MaRisk) and the German Banking Act (Kreditwesensgesetz, KWG). The set guideline is based on the AT5 organizational guidelines of MaRisk. Accordingly, the institutions must ensure that all activities are carried out on the basis of documented instructions, guidelines or process descriptions, i.e., in accordance with the set guidelines. The institution decides on the content, and depends on the type, scope, complexity and risk level of the process.
The set guideline must
- be provided to all relevant employees in an appropriate manner,
- always be available in the current version and
- be updated in good time to reflect new framework conditions.
In terms of content, the set guideline must include rules on
- the structural and process organization, including the allocation of tasks, competencies and responsibilities,
- the internal audit,
- the structure of risk management and controlling processes and
How are regulatory compliant set guideline processes implemented with DHC VISION?
To comply with legal and regulatory requirements, a large number of documents, process descriptions and related information are generated in the set guideline. Manual document management is difficult, cumbersome and error-prone and poses a major challenge to (operational) organizations, QM or auditing in particular. The consequences are potentially serious for safety, the environment, customers, and ultimately the institution and its business operations as a whole. The digitization and automation of processes in document management, on the other hand, offer security.
DHC VISION provides powerful and modern solutions for this purpose. The Document Management System (eDMS) is home to differentiated workflows and solid processes that ensure that instructions and guidelines are easily created, reliably checked, traceably approved, accurately released, and distributed to the right people. The digital management processes are fully automated. Dashboards and comprehensive reporting provide the perfect overview of the current status of document management, validity and ongoing processes. The eDMS with (manual) letterpress procedures, audit trails, etc. is part of an integrated management system environment. This makes it possible to connect to additional disciplines and task areas.
More than an eDMS | TRAINING, PROCESSES, RISKS, CONTROLS
In addition to the pure distribution and provision of the documentation,DHC VISION TRAININGManagement also enables staff to be trained in the relevant content. Entirely electronically. DHC VISION therefore bridges the gap between document management/control and training management.
Furthermore, the process management ensures the seamless integration of paperless management of standardized documentation, manuals and forms. The DHC VISION PROCESSManagement provides all necessary tools and methods for modeling, communication, measurement as well as continuous improvement of the processes or the process landscape and also organizational structure. DHC VISION PROCESS also enables the documentation, evaluation and management of risks and associated controls or measures. Standards can be documented and assigned to processes, organizational units or even documents, allowing DHC VISION to generate an overview matrix.
Last but not least: The maximum benefit from this integrated system environment is achieved through the additional use of the DHC VISION ICS. Here, we seamlessly combine process management and set guidelines with the internal control system. In this way, process-level controls are seamlessly embedded into existing business processes or process flows and assigned to one or more process steps. In this case, there is an automatic graphic representation of the controls in the process model. DHC VISION ICS as a whole supports the entire internal control process – from process documentation to the recording and assessment of risks, the definition and implementation of associated controls, and the testing of controls by internal or external persons (e.g. auditors).
Please also read the publication “Successfully implementing ICS: A practical guide for human resources management with many examples”