Case Study: IBM Audit Defense for a Swiss Financial Services Firm
Challenge
A prominent Swiss financial services company known for its wealth management and investment banking operations faced an IBM audit with claims totaling CHF 25 million. The company’s IT infrastructure supported critical functions, including transaction systems, client management platforms, and regulatory compliance systems. IBM’s audit findings highlighted alleged discrepancies in sub-capacity licensing, entitlement mismatches, and deployment overages in virtualized environments. The financial institution engaged Redress Compliance to resolve the audit efficiently while safeguarding operational continuity and minimizing financial exposure.
The Process
- Comprehensive Audit Analysis: • Redress Compliance thoroughly reviewed IBM’s audit findings, identifying overestimations and errors in licensing metrics. • Examined historical agreements and entitlement data to establish an accurate compliance baseline.
- Data Collection and Validation: • Collaborated with IT and compliance teams to gather accurate data from servers, virtual machines, and cloud platforms. • Validated sub-capacity metrics and identified underutilized licenses and misaligned entitlements. • Corrected IBM’s audit findings with precise usage data and interpretations of licensing policies.
- Strategic Negotiation with IBM: • Presented IBM with a revised compliance report supported by validated data and legal interpretations. • Highlighted the financial institution’s proactive compliance measures and role in adhering to Switzerland’s stringent regulatory standards. • Engaged in strategic negotiations to reduce the financial liability significantly and avoid penalties.
- Optimization and Compliance Management: • Reallocated unused licenses within the company to address immediate compliance gaps without additional purchases. • Designed a governance framework with automated monitoring tools and internal compliance audits to ensure ongoing adherence to IBM’s licensing policies. • Delivered training sessions for IT and procurement teams to strengthen understanding of licensing requirements and governance practices.
Outcome
Redress Compliance reduced the company’s financial liability by 94%, lowering the CHF 25 million claim to CHF 1.5 million. The settlement covered the cost of additional licenses required for new deployments, with no penalties or retroactive fees imposed. The financial institution maintained uninterrupted operations throughout the audit process, ensuring continued trust and service for its clients. Enhanced compliance processes were implemented to minimize the risk of future audit challenges.
Quote from the CIO:
“Redress Compliance’s expertise was critical in navigating a complex and high-stakes audit. Their guidance saved us millions and left us with stronger compliance and governance practices. They were a true partner in protecting our business.”
Key Results:
- Initial Audit Claim: CHF 25 million.
- Final Settlement: CHF 1.5 million (94% reduction).
- Compliance Enhancements: Centralized license management and real-time monitoring systems.
- Operational Continuity: Ensured uninterrupted financial services during the audit process.
This case highlights Redress Compliance’s ability to deliver exceptional results for financial institutions. During complex IBM audits, Redress Compliance protects financial stability and operational efficiency.
