Thomson Reuters: “International banking compliance group, NYC b-school offer ‘reality’-based certification”

The Lubin School of Business at Pace University and the Association of International Bank Auditors (AIBA) have collaboratively developed a Certified Compliance and Regulatory Professional (CCRP™) certificate program for professionals in the global financial services industry. The work behind the program’s creation took four professors and eight industry professionals about 1,000 hours. Classes begin January 19, 2012.

Interactions between government and business are more important than ever and the risks of getting it wrong are greater than ever, Neil S. Braun, dean of the Pace University Lubin School of Business, told Thomson Reuters.

The Lubin School and the Association of International Bank Auditors have addressed this need by collaboratively developing a Certified Compliance and Regulatory Professional certificate program for professionals working in the global financial services industry, Braun said.

The CCRP™ program will be the inaugural course offered at Lubin’s new Center for Global Governance, Reporting and Regulation in midtown Manhattan on Thursday evenings beginning January 19. (For course and registration information, click here.)

The complexity of world markets and diverse political systems means managing international business activities is both more important and more difficult than ever. It has become evident that planning and execution are as important in matters of risk management and regulatory compliance as they are in the traditional business disciplines. The CCRP™ will provide the analytical framework to enhance management’s ability to anticipate and address a fast changing and increasingly regulated world with specific focus on the international banking industry, Braun said.

The program was developed by Lubin professors working with AIBA’s internal audit, compliance and internal control members, who represent nearly 100 US, primarily New York City area-based, branches and agencies of foreign banks. The work took four professors and eight industry professionals about 1,000 hours, Lubin professor John Alan James told Thomson Reuters.

“We are very excited to partner with Pace’s Lubin School of Business … in offering this unique program to provide intensive regulatory risk-management training for industry professionals,” said Steven Lewis, Chairman of the AIBA.

Developing the program was a collaborative effort, not just a sign-off on an already developed curriculum, said David DeMartino, a principal at Compliance Professional Resources LLC and AIBA adviser to the program.

Most international certifications are not of significant consequence, DeMartino said, as hiring managers we don’t think that’s enough.

Teaming the AIBA with Lubin added credibility to the certificate because compliance practitioners were engaged in developing the program, said another AIBA adviser, Romeo A. Vinas, of the Arab Banking Corporation BSC.

The curriculum was developed by compliance practitioners dealing with reality every day and is designed to prepare potential new-hire and promotion candidates for ever-growing and -changing regulatory requirements, said Vinas.

Vinas differentiated the CCRP™ from other recognized certifications, saying only the CCRP™ addresses corporate governance and enterprise risk management as well as anti-money laundering and anti-terrorist financing controls.

Lubin and the AIBA said it is critical to have a recognized business school develop a program that will be administered by industry audit and compliance professionals because:

  • financial institutions are facing an increased regulatory burden, that is increasing at a dramatic pace, in the US and abroad;
  • the regulatory compliance market requires a significant set of skills that include elements from the accounting, finance and legal professions;
  • existing certifications do not offer enough depth to provide students with the knowledge to make an impact in the workforce; and
  • ongoing retraining is critical and must be professionally administered.

The development goal was to create a certification based on not just theory but also the practical elements of compliance [such as] incorporating technology, said AIBA adviser DeMartino.

Calling the program one of the only [ones] on using technology in the industry, DeMartino said it looks at how technology relates to regulation and asks about the quality of information, not just number crunching.

The program is designed for banking professionals who seek a solid understanding of the growing significance of regulation and the need for compliance. The initial class will likely include regulators, compliance professionals, lawyers, internal auditors, risk decision makers, and accounting and operational managers, James said.

The first class will receive their certifications just as critical new rules such as the Volcker rule on proprietary trading and a new derivatives trading regime will likely take effect. The course will teach how to manage uncertainty and train others at the bank, from directors and C-suite executives, to supervisors, to trading, audit and operational professionals.

An important goal will be to help the bank determine its risk appetite and apply it throughout its policies and procedures, and to develop organizational structures that break down and eliminate silos, James said.

Recipients of the CCRP™ certificate will have learned to think strategically and tactically, and then customize appropriate solutions for the international financial services institutions where they work, said Lubin dean Braun.

CCRP™ recipients will also have learned how to organize their institution’s compliance structure and train their colleagues to be effective and efficient, said James.

CCRP™ holders may also receive six credits towards a Lubin MBA, Braun said. The school will consider developing programs for other industry sectors such as brokerage or investment banking.

The program will consist of three parts:

  • corporate governance in international banking; and enterprise, compliance and operational risk management;
  • compliance risk assessment; anti- money laundering and anti-terrorist financing controls; and the role of technology in establishing proper compliance programs; and
  • developing and managing a banking compliance program.

Roughly the last third of the program will have each student participate in a practical project.

Students will be expected to attend classes, but lectures will be archived for viewing if occasional business travel takes a student out of town. If Lubin develops programs for other financial service sectors it will consider offering remote classes for non-area students as long as they can participate in the project requirement, Braun said.