Audit Readiness: How a Regional Bank Used AI to Prevent Compliance Failures Before They Happened
As audit expectations intensified, The Bank turned to Rational Exponent to simulate, test, and validate compliance readiness—transforming their audit prep from reactive to resilient.
The Challenge
The Regional Bank, a fast-growing institution with under $100B in assets, had solid policies and a functioning GRC system. But leadership identified a critical blind spot: they lacked evidence that controls were not only in place, but working. Examiners were no longer satisfied with documentation alone—they expected proof of execution and operational resilience.
Meanwhile, headlines revealed enforcement actions across the industry for untested controls, ineffective governance, and late-detected compliance gaps.
“If another bank was cited for it, we need to be sure we’re not vulnerable to the same thing,”
The Solution
Rational Exponent introduced the Head of Compliance and her team to a proactive risk management approach for audit preparedness with RE:Agent’s Simulation and Scenario Testing suite. By integrating RE:Agent’s Consent Order Clearinghouse, the Bank was able to proactively identify vulnerabilities. RE:Agent became an AI-powered rehearsal engine for regulatory pressure.
RE:Agent Delivered
- Consent Order Intelligence — Mapped real enforcement actions to the Bank’s policy environment to identify similar risks.
- Regulatory Scenario Simulations — Ran realistic OCC and FRB audit simulations using real-world triggers and risk themes.
- Business Unit Stress Testing — Performed “what-if” exercises to uncover control failures and policy breakdowns.
- Remediation Playbooks — Auto-generated corrective actions, updated policies, and internal monitoring plans.
- Institutional Memory — Built a learning archive of resolved issues, test outcomes, and risk decisions.
Strategic Impact
RE:Agent shifted audit readiness from a periodic scramble to a continuous state. Risk and compliance leaders were now able to test systems like examiners, close gaps before findings occurred, and respond confidently to emerging threats.
When a peer institution was cited for failing to implement its AML policy, the Bank ran a RE:Agent simulation in under 15 minutes. The result? Verified, active, and monitored controls—well ahead of any regulator review.
Results
- Reduced Exam Prep Stress — No more last-minute document rushes
- Proactive Risk Mitigation — Identified vulnerabilities months before they became problems
- Institutionalized Readiness — Compliance simulations became part of quarterly governance
- Faster, Confident Response — Actionable insights delivered in minutes
- Regulator Confidence — Demonstrated tested, not just documented, controls
For risk managers facing rising scrutiny, RE:Agent delivers more than audit prep—it enables continuous assurance.