Regulatory examination management is the internal process a financial firm uses to handle a regulatory examination from the first notice to the closure of findings. A co-ordinator, usually in compliance or a regulatory affairs team, acts as the single point of contact with the examiners and keeps a log of every request and response.
Before the visit, the firm reviews the scope letter, gathers the documents requested, checks its own records for known weaknesses and briefs the staff who will be interviewed. During the examination it supplies information accurately and on time and tracks emerging concerns. Afterwards it checks the draft report for factual errors, submits a formal response, and assigns each finding an owner, action and deadline, often within a regulatory remediation plan. Poorly handled examinations, or repeat findings, increase the risk of regulatory enforcement. The work is part of a firm's compliance program.