Beyond satisfying supervisory expectations, an effective product governance framework is key to elevating an organization’s competitive edge. Organizations are now actively evaluating their existing governance models, processes, and technology to drive better commercial outcomes, meet market demands, and enhance product risk management.
Organizations are facing heightened expectations from the regulators globally to modernize their product governance framework and better manage the heightened risks posed by today’s evolving product landscape (e.g., the introduction of novel products such as digital assets and “green” products). However, organizations 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 modernizing the associated end-to-end processes is not an easy undertaking. While a rationalized and simplified process will go a long way, enough time and thought should be given to designing the target-state product governance process. Organizations are rethinking product governance by redesigning legacy processes and investing in technology capable of supporting an end-to-end product governance framework.
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:
As you get started with your organization’s product governance transformation, you may want to consider the following questions:
Download our report to gain insights on how your organization may design and implement industry-leading, agile product governance programs. And if you are interested in a discussion, don’t hesitate to reach out.