Barbarians at the Gates: Responding to Regulatory-Enforcement Actions and Crisis Management—Monitorships

Compliance and integrity have long been recognized as essential components for the success and longevity of financial institutions. In the current business landscape, the significance of these factors is magnified, as investors increasingly scrutinize Environmental, Social, and Governance ratings alongside traditional financial performance metrics. The growing emphasis on these non-financial elements reflects a broader shift in corporate accountability and societal expectations, compelling companies to adopt a more holistic approach to value creation. In light of these challenges, one of the essential areas of focus when preparing for the arrival of a monitoring team is the establishment of securing a proactive monitor liaison function. The monitoring process provides an essential opportunity for organizational leaders, allowing them to address and correct previous mistakes while simultaneously laying the groundwork for future success. As a result of these focused investments and strategic enhancements, organizations that navigate the monitoring process effectively find themselves better equipped to face new compliance and integrity issues as they arise. The combination of remediation strategies and forward-thinking planning fosters a culture of agility and preparedness, enabling these companies to respond to evolving regulatory landscapes with confidence.