Regulatory change management is hard – is there a way to make it easier?
Published on 7th March 2023INTRODUCTION
A regulatory change management solution is a key part in any efficient compliance and risk management program within financial institutions. Regulatory change management solutions provide insight on upcoming changes, help organizations prepare for changes and enable real-time tracking and reporting. In order to keep up with these changes, firms must ensure that they have access to timely updates about regulatory frameworks across multiple jurisdictions in order to meet their ongoing compliance obligations.
REGULATORY MONITORING/ HORIZON SCANNING
Regulatory monitoring is the process of keeping track of regulatory changes. It is the process of identifying potential regulatory changes and incorporating them into a risk management process, before they are enacted or put into practice, helping firms stay up to date with the latest regulations and to identify new opportunities, risks and other information that could affect the firm’s business.
Regulatory monitoring, also known as horizon scanning, is important as it helps firms stay ahead of the curve when it comes to compliance. If you’re not aware of upcoming legislation or regulations that could affect your business, how can you prepare for any potential impact?
In order to monitor regulations effectively, organisations need to keep their eyes on three different types of documents:
LEGISLATION
Laws passed by legislatures or parliaments which create or change laws
REGULATIONS
Rules made by government agencies or departments but not enacted into law
GUIDANCE
Informal guidance provided by government agencies or departments on how they interpret legislation or provide advice on specific issues
SINGLE VIEW VISUALISATION
The first step to improving regulatory change management is to provide a single view of all regulatory change management activities. This can be done by combining all activities into one location, allowing you to see what’s happening in real time and track progress throughout the process.
Additionally, providing a single view of all regulatory change management processes will help ensure that a firm has complete visibility of their current status at any given time. This is crucial because if you don’t know where something stands, then how can you manage it effectively? It’s also important that this information is easily accessible by everyone involved so they can quickly access any updates or changes within their own roles as needed.
A SINGLE SOLUTION FOR MULTIPLE REGULATORY CHANGE MANAGEMENT NEEDS
One solution can be used by multiple users within a firm across all pertinent jurisdictions. This helps show operational resilience to the regulators because everyone is using the same system, so there are no discrepancies between departments or even between different locations within the same company.
CONCLUSION
The regulatory change management process is complex and requires a system to manage it effectively. Things that can go wrong when performing many tasks manually, but with the right system, you can make sure your organisation stays on track with compliance requirements.
If you’d like to know more about Corlytics and our regulatory change management solution please get in touch with us