Rewinding the Tape, Crafting Frameworks: Exploring Thoughts on Building.

One of the greatest challenges while building out your own brand and company and traveling on the road of self-discovery is working on building other companies’ brands, foundations, and frameworks.

Where did we start and where have we firmly stood by our beliefs?

Over decades in the payments space, we have collectively learned that many folks have unbelievable ideas and are set to change the world of payments. In doing so, they are heads-down, product-focused, and ready to go to market. Exciting times for sure, ones filled with water hazards, wrong-way signs, caution tape and flashing warning lights. These are the signs that so many have ignored, pushed off or thought ‘we can come back and do that later.’ Unwelcome news: you cannot come back later, you cannot ignore it, as it won’t go away. One can’t dismiss the warning signs. If we look at the same news and recent actions from the OCC, we all will see the result of avoiding the work. However, other folks laid the proper foundations and then lost their focus.

In the last few years, we have witnessed the end results of not having building blocks in place, ignoring compliance, operations governance, risk controls, and ensuring that they all work in harmony. Yes, harmony is possible, absolutely essential even. Essential, for any of us in the payments space to ensure that all players are reading from the same sheet of music. Let us share our music with you and we hope you enjoy the show.

The first building block to be laid and embraced like a Miles Davis trumpet solo is compliance and risk. Building a solid compliance and risk program is paramount as it safeguards an organization’s integrity, reputation, and financial stability. It ensures adherence to laws, regulations, and ethical standards, mitigating legal and financial liabilities. Moreover, it fosters trust among stakeholders, including customers, investors, and employees, and enhances the organization’s credibility. By proactively identifying and managing risks, such a program bolsters resilience and helps prevent costly crises. It not only ensures legal compliance but also bolsters strategic decision-making, enabling sustainable growth and preserving the long-term viability of the organization.

The second building block to be laid down, like a track from Dr. Dre, is operational governance. This refers to the processes, structures, and practices put in place to ensure that an organization operates efficiently, effectively, and in compliance with its objectives and policies. It is a crucial aspect of overall corporate governance and involves managing day-to-day operations, monitoring performance, and making decisions that align with an organization's goals.

Why do we insist on these building blocks? In the context of operational governance, we refer to the fundamental components or elements that make up the framework for effective governance. These building blocks provide a solid foundation upon which an organization can build its governance structure. Within every fully orchestrated accompaniment there are the vital blocks that support or provide background for other others to be built upon.

Policies and Procedures: Clearly defined policies and procedures set the rules and guidelines for how operations should be conducted. They provide a basis for decision-making and ensure consistency and compliance.

Organizational Structure: A well-defined organizational structure outlines roles, responsibilities, and reporting relationships. It helps in delegating authority and accountability, which is essential for effective governance.

Risk Management: Identifying, assessing, and mitigating risks is critical for operational governance. This building block helps an organization anticipate and manage potential challenges.

Performance Metrics: Establishing key performance indicators (KPIs) and measurement mechanisms allows organizations to track their performance and make data-driven decisions.

Communication: Effective communication channels ensure that information flows smoothly throughout the organization. Transparency and open communication are key elements of good governance.

Compliance and Ethics: Ensuring that the organization operates within legal and ethical boundaries is fundamental. Compliance with laws, regulations, and ethical standards is vital for long-term success.
Here we are, with a bunch of beats, solid tracks, and ready for the conductor to step up and lead us all on the way the way with a solid go-to-market strategy. Are we all on the same page right now? Have we worked together to foster harmony and syncopation? What we often discover is when these building blocks are embraced or brushed off like a snare while painting the perfect sound. Here are the key components:

Leadership Buy-In: Ensure that leadership at all levels of the organization actively supports and promotes the importance of the building blocks. Leadership commitment sets the tone for the entire organization.

Integration: Integrate the building blocks into the organization's culture and values. Make them a fundamental part of decision-making processes and day-to-day operations.

Continuous Improvement: Emphasize that operational governance is an ongoing process. Encourage regular assessments and reviews to identify areas for improvement in the building blocks.

One piece of advice we like to sing like its our mantra – because it is – first, one should be willing to collaborate, get out of their safe space, be open to other’s critical thoughts, take these in and learn how to iterate, and grow in understanding with your team. Move from collaborating to integrating with the goal of having evergreen work product.

Evergreen work product ensures that your policies, procedures, and frameworks remain relevant, compliant, and valuable to regulators, and auditors. Unlike time-sensitive or trending topics, evergreen work products continue to keep your team focused on risks in this constantly changing payments environment. We are always collaborating, iterating, testing controls and ensuring we are doing all we can to control and mitigate risk.

Serio Payments Consulting is your partner for a better future in the payments industry. They offer a comprehensive approach encompassing operational governance, risk assessment, product control catalogs, and compliance with ISO 20022 standards. Their expertise extends to developing robust payment strategies, seamlessly integrating digital payment solutions, and implementing stringent security measures to prevent fraud. With a deep understanding of the regulatory landscape, they guide businesses in achieving compliance while expanding their global footprint and navigating complex cross-border payments.

We can be reached at [email protected] (Founder & CEO), [email protected] (Director of Operations), and [email protected] (Director of Customer Experience and Project Implementation).