Zions Bancorporation is a financial services company operating in the western United States with a complex risk profile due to its diverse services. It sought a technology system to facilitate meeting SOX 404 requirements and effectively manage risk. It implemented an automated ERM system using risk tools, with user-friendly interfaces and reporting. This allows Zions to better manage existing and future risks, improve disclosure and focus internal auditing.
2. Background Zions Bancorporation originated as Keystone Insurance and Investment Co., a Utah Corporation, in April 1955. In April 1960, Keystone, together with several individual investors, acquired a 57.5 percent interest in Zions First National Bank from the LDS Church. In 1965, the name of the company was changed to Zions Bancorporation. (However, it operated as Zions Utah Bancorporation from 1966 to 1987.) The first public offering of shares in Zions Bancorporation was made in January 1966. There continued to be some minority shareholders until April 1972, when the company exchanged the remaining minority shares for common shares. Zions Bancorporation's common stock is traded on NASDAQ under the symbol ZION. The company is a member of the S&P 500 Index and the NASDAQ Financial 100 Index.
3. Challenge As a financial services company that operates six bank charters across the western United States, Zions Bancorporation have the diverse, broad services that it offers. It cause a complicated risk profile. One of the main questions of management was what type of technology system would fit the company’s needs and facilitate meeting Sarbanes-Oxley Section 404 requirements.
6. Meet regulatory requirements of Sarbanes-Oxley Section 404 requirements.Event Identification Zions Bancorporation deals with banks, it worked closely with theFederal Reserve Bank , the U.S. Office of the Comptroller. And also with the Internal Audit department (who provided feedback on many areas such as functionality, methodology, and user guidelines).
14. It allows for better disclosure to its auditors in a more timely manner, as well as providing focus to its Internal Audit department.
15. Zions has been able to combine multiple risk tools into one common system, providing the company a more effective way to manage its risk and increase its customer service. Control Activities In this new system, the business-line users determine the objectives and identify the risks associated with those objectives. This system then calculates the inherent risk score for analysis (this step helps with the evaluation of the company’s risk levels). The business-line users then populate the system with controls(preventive or detective) and ratings. This system then calculates control and residual risks scores to identify risk exposures.
16. Source Using Technology to Support ERM: A Case Study : URL Link Zions Bancorporation Homepage : URL Link
