CFPB Compliance: What to Do and Not to Do With Your Audit Results
Think your organization is prepared for a Consumer Financial Protection Bureau examination? You aren’t ready for the CFPB until you have undergone an audit.
Audits are a fundamental part of any compliance management system. Along with consumer complaint tracking and continuous board oversight, audits provide essential information about your workforce compliance program: where any risks lie, how those risks impact your company and its customers, what elements are satisfactory and what needs to be improved. Think of an audit like a physical checkup you might get before running a marathon, or a professional inspection before putting your house on the market.
As with either of those points of comparison, some results of an audit may come as a surprise. Your organization may have bad cholesterol, so to speak, or a mold problem: roles, departments and business functions where there are gaps or deficiencies in CFPB compliance, and which present unexpected risk in the form of fines, financial harm to consumers and—perhaps most significant of all—reputational damage.
Regardless of their nature—positive, constructive or somewhere in between—the findings of an audit open a window into your compliance program, but visibility is of little value on its own. Smart organizations know that there are actions to take, as well as actions to avoid, in the aftermath of an audit.
Think of an audit like a physical checkup you might get before running a marathon, or a professional inspection before putting your house on the market.