Issue Trends Signal Ongoing Operational Excellence

Like air traffic controllers guiding thousands of flights safely to their destinations, effective controls help ensure risks are identified, managed and mitigated before they become incidents.

At Cenlar, that's exactly how we approach risk management and control effectiveness. It’s not simply about compliance obligations. Over the past several years, we have maintained a deliberate focus on strengthening processes, enhancing controls and continuously improving how we serve our clients. We are committed to making it easier for clients to achieve their goals through a simple, frictionless experience.

Clients and their homeowners depend on us to safeguard their information, deliver consistent service and manage risk. One of the clearest indicators of that progress is the sustained improvement in control effectiveness across the organization. In 2025, we established an ambitious 85% effectiveness across our high and very high-risk controls. Through the collective efforts of teams across the company, we exceeded that target and today maintain control effectiveness above 90%.

Driving Down Issues Through Prevention

We don’t measure success by the absence of issues. A healthy organization encourages the identification, escalation and remediation of issues and potential risks before they become larger problems. Our teams are always challenging processes and addressing opportunities for improvement.

We saw measurable outcomes across several key indicators as our control effectiveness improved. Our total number of open issues at any given time has been reduced by more than 30% over the last year.

The lower overall issue environment creates an opportunity to accelerate remediation efforts and focus on more solutions to better serve our clients. Our teams now have greater capacity to prioritize root causes of issues to better strengthen controls and preventive measures to decrease the likelihood of recurrence.

The Next Phase

Building on a strong foundation of control effectiveness and continuous improvement, we are embracing automation and AI to transform how we identify, assess and manage risk. By leveraging advanced capabilities, we can strengthen operational resilience, improve decision-making and minimize manual dependencies to identify risks before they impact our operations.

A key component of this transformation is our continued investment in implementing ComplAI by Livegage, which automates regulatory and operational work queues while embedding requirements directly into business processes and monitoring routines. By automating preventive and detective controls, we can identify exceptions earlier, reduce manual dependencies, strengthen consistency of execution and further improve our ability to manage risk proactively.

For clients, this means greater consistency, enhanced transparency and reduced operational risk. For homeowners, it helps ensure processes are executed accurately, requirements are met consistently and potential issues are identified and addressed before they impact the customer experience.

Continuous improvement is at the core of how we operate. By reinforcing controls, proactively managing risk and leveraging insights from identified issues, we are elevating the client experience and positioning Cenlar for long-term success.