Futureproofing in a world where regulatory obligations change
Published on 27th March 2023The world of regulatory compliance is changing fast with a greater volume of regulations, and those regulations being prescriptive in nature rather than being based on principles or best practice. The regulators are tightening the screws, and it can be difficult to keep up with all the changes they make, plus there’s the complexity and the increasing time required to handle the changes. It’s time to consider how you can futureproof your regulatory obligations management.
The application of artificial intelligence (AI) and automation can help. AI is an important tool for the collection and processing of regulatory intelligence, as it allows the monitoring or horizon scanning of regulations in real time and quickly identifies changes that may affect your business. By utilising the right regulatory technology (regtech) solution you can access pertinent data much faster than ever before, which means that changes will be detected sooner and implemented faster than if relying on traditional, manual methods alone.
A regtech solution using AI can help you to identify and manage regulatory obligations, risks and opportunities in a variety of ways. It can use techniques to collect information from different sources, such as government websites, public filings and regulatory databases. The resulting data can be taxonomized, or classified by theme, regulator, jurisdiction etc and risk rated – plus displayed on heatmaps. A SaaS solution, with its inherent ability to be 24/7 across the globe in real-time in the cloud, allows the sharing of information with teams managing regulatory obligations – with all being able to access a single view of that information.
AI can also be used by regulators themselves when they’re trying to manage the publication of regulatory content, for example by automating certain processes or providing notifications when something needs attention (rather than making all firms whom they regulate manually review each and every update).
Applying the right regtech solution to the management of regulatory obligations has the potential to deliver significant benefits. Automating compliance processes will enable organisations to focus on what matters most. It will help identify and manage regulatory risk, delivering new efficiencies and reducing operating costs while improving a firms outcomes in terms of compliance and avoidance of financial fines or reputational damage. A solution of this type will also allow organisations to reduce compliance risk by augmenting human intelligence with technology that automates repetitive tasks, and makes it easier to make more informed decisions faster than ever before possible before now – all while reducing costs associated with manual processes.
CONCLUSION
The application of a regtech with AI has the potential to deliver significant benefits in the management of regulatory obligations. The increasing complexity and proactiveness of regulators means that companies need more than ever before to manage their compliance with regulations effectively. The right regtech solution can help businesses do this by automating workflows and reducing costs associated with manual processes as well as providing insights into how best to manage risk across all business functions. This type of solution is a great step toward futureproofing against huge volume of changing regulatory obligations that will continue to cause firms to have to manage how they are affected and the actions they must take.
If you’d like to know more about Corlytics and our regulatory change management solution please get in touch with us