With new regulatory alerts being issued at an unprecedented rate, compliance teams must work out the best way to monitor and manage change.
Today’s regulatory landscape is more challenging than ever, with increased scrutiny by regulators, less time for organizations to react and stricter enforcement actions for violations.
These new demands are forcing firms to focus on the adequacy of the structures they have in place to cope with the growing volume and complexity of regulatory change, as they look for new ways to monitor and manage change and ensure they are compliant.
As this year’s Cost of Compliance report has shown, the gap between compliance requirements and the resources available to manage this burden continues to grow.
Many risk management systems are just not equipped to handle the influx of regulatory change or the threat posed by failings within their own organization.
And the regulatory landscape is shifting at a rapid pace.
New factors include how organizations can better manage the volume and complexity of regulatory change, how a firm maps change to internal policies and procedures, and how technology innovations make workflows more efficient.
Do organizations have the blueprints to ensure compliance and senior managers are doing all the right things, in the right way, in their day-to-day activities?
Now more than ever it is critical for businesses to be certain that the right processes are in place to capture and monitor these changes.
They also need to perform an impact analysis, as well as map to the correct policies and procedures, and notify the right people to action.
The role of the compliance team helps the board and senior managers with monitoring, advising and formulating policy, providing a strong overview of the regulatory environment and regular support to the chief executive.
In turn they need to look for ways to improve how they handle regulatory change management, and ensure a structured process is in place to manage some of these common issues:
- Shortcomings in industry culture
- Rising volume of regulatory alerts
- Uncertainty around the outcomes of reforms and how to best prepare
- Strained resources and compliance fatigue
- Pressure from new innovators and market entrants
- Growing number of regulatory bodies
- Stricter regulatory requirements
- High enforcement action and increased emphasis on personal accountability for compliance failings
Compliance teams are increasingly relying on technological solutions to help them monitor and manage regulatory change, and to address the new challenges presented by impending directives and regulations.
A connected approach through the use of technology can ensure that:
- The relevant people get the information they need to help them to assess the likely impact of regulatory change with greater speed and efficiency
- Compliance risk and personal liability are minimized
- The right reports make their way to senior management quickly and efficiently
This in turn enables a sustainable, repeatable, and ultimately successful compliance approach to be achieved.