Financial Sector Management and Performance

Washington, July 2019– The Securities and Exchange Commission (SEC) has released a report by the Council of Inspectors General on Financial Oversight (CIGFO), which oversees the Financial Stability Oversight Council (FSOC), called Top Management and Performance Challenges Facing Financial-Sector Regulators.  The aim of the report was to consolidate and provide insight into cross-cutting management and performance challenges facing financial-sector regulatory organizations in 2019, as identified by members of CIGFO.  

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd- Frank Act) established the Council of Inspectors General on Financial Oversight (CIGFO) to oversee the Financial Stability Oversight Council (FSOC) and suggest measures to improve financial oversight. FSOC has a statutory mandate that created collective accountability for identifying risks and responding to emerging threats to U.S. financial stability. 

The Inspectors General within CIGFO report annually on the Top Management and Performance Challenges (TMPC) facing their respective Financial-Sector Regulatory Organizations. This is CIGFO’s second report reflecting the collective input from the Inspectors General in CIGFO and identifying cross-cutting challenges facing multiple Financial-Sector Regulatory Organizations. This report reiterates the six challenges from our 2018 report and includes an additional challenge for 2019 – Improving Contract and Grant Management. 

• Enhancing Oversight of Financial Institution Cybersecurity  

• Managing and Securing Information Technology at Regulatory Organizations 

• Sharing Threat Information 

• Ensuring Readiness for Crises

• Strengthening Agency Governance  

• Managing Human Capital 

• Improving Contract and Grant Management 

It is important to address the challenges in this report because financial- sector activities – such as consumer and commercial banking, and funding, liquidity and insurance services – were identified by the Department of Homeland Security, Cybersecurity and Infrastructure Security Agency, as National Critical Functions. Those functions are so vital to the United States that any disruption, corruption, or dysfunction would have a debilitating effect on U.S. security, the national economy, and/or public health and safety.   
Although Financial-Sector Regulatory Organizations have individual missions, this report emphasizes the importance of addressing challenges holistically through coordination and information sharing. Considering issues on a whole-of-Government approach versus a siloed, agency-by-agency basis allows for more effective and efficient means to address Challenges through a coordinated approach.  
By consolidating and reporting these challenges, CIGFO aims to inform FSOC, regulatory organizations, Congress, and the American public of the cross-cutting challenges facing the financial sector. You can find the whole report at: