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Reevaluating and redesigning a product governance framework

Challenges and opportunities for the banking organisations

Beyond satisfying supervisory expectations, an effective product governance framework is key to elevating an organisation' competitive edge. Organisations are now actively evaluating their existing governance models, processes, and technology to drive better commercial outcomes, meet market demands, and enhance product risk management.

Why design an end-to-end product governance framework

Organisations are facing heightened expectations from the regulators globally to modernise their product governance framework and better manage the heightened risks posed by current evolving product landscape (e.g., the introduction of novel products such as digital assets and “green” products). However, organisations are struggling to strike the appropriate balance between commercial outcomes, delivering for clients, and product risk management.

Managing the growing product governance supervisory expectations and modernising the associated end-to-end processes is not an easy undertaking. While a rationalised and simplified process will go a long way, enough time and thought should be given to design the target-state product governance process. Organisations are rethinking product governance by redesigning legacy processes and investing in technology capable of supporting an end-to-end product governance framework.

An effective product governance framework should consist of:

A well-designed and documented governance model is the foundation of a sound end-to-end product governance framework. When the model is built out properly, it becomes an enabler for efficient processes, informed product strategy, and sound product risk management.

Organisations should develop an interconnected product governance life cycle to elevate commercial outcomes, meet market demands, and enhance product risk management.

Technology capabilities can help streamline product governance efforts. As an organisation' technology becomes more sophisticated, the benefits of an integrated technology solution become more apparent.

The benefits

When done effectively, the enhanced product governance framework benefits customers, businesses, risk management (financial and non-financial), and control functions. The primary benefits of strengthened product governance include the following:

Efficient and standardised process

  • Move from product ideation to market faster
  • Ability to execute a consistent and easy-to-navigate approval process
  • Reduce duplicative effort and unnecessary bureaucracy

Informed product strategy

  • Ability to make data-driven decisions (e.g., product prioritisation)
  • Ability to manage return on investment (ROI) at product and portfolio levels

Improved risk management

  • Capacity to continuously measure and mitigate risk through product life cycle
  • “Know your products” toolkits facilitate risk monitoring
  • Ability to demonstrate compliance with regulatory obligations with enhanced reporting and metrics

Getting started

As you get started with your organisation' product governance transformation, you may want to consider the following questions:

  • Does your organisation have a defined end-to-end product governance framework including a governance/committee structure and policies/procedures for new product approval, product taxonomy, and ongoing monitoring?
  • Does your organisation have an inventory of products and services with up-to-date risk ratings easily accessible?
  • Does your organisation have a new product approval process that enables the business to get products to market quickly without trading off effective risk assessment?
  • Does your organisation have user-friendly and integrated technology capabilities to support the end-to-end product governance life cycle?

Stay ahead

Download our report to gain insights on how your organisation may design and implement industry-leading, agile product governance programs. And if you are interested in a discussion, don’t hesitate to reach out.

Get in touch

Jaspreet Jhaj
Deloitte LLP


Monica Lalani
Deloitte & Touche LLP

Thomas Hayes
Managing Director
Deloitte & Touche LLP

Tarpan Gupta
Senior Manager
Deloitte LLP

James Bennett
Senior Manager
Deloitte MCS Limited

Richard Higgins
Managing Director
Deloitte & Touche LLP

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