The Changing View of Compliance Risk
Over the last decade, financial organisations have significantly changed the way they view compliance risk.
This can be attributed to a number of reasons, namely the global financial crisis but also to expanding globalisation and the increasing development of new technologies.
Some important changes include:
- Customer data security and privacy
- New developing markets
- Post GFC Regulatory increases
Companies are now implementing technology not just as a cost-saving measure but to address quality procedures, policy awareness and corporate governance requirements.
Setting Compliance Priorities
A key strategic element that forward-thinking companies are deploying, is setting clear priorities regarding their compliance program.
Some of these are:
Building a strategic base around technology
Technology is both an enabler and a disrupter. It is the strategic path a company follows that will determine whether technology works for or against them.
Moving compliance up the organisational hierarchy
More than 70% of compliance operations report directly to the CEO. Companies are now moving compliance further up the reporting chain, where senior management and board members have access to information.
More than just a tick-box exercise
Leading financial firms have long regarded compliance as a means to achieve a competitive advantage and reputation management, rather than simply meeting regulatory requirements.
Automating the compliance process
Automation provides the ability to allocate time and budget to more important tasks than chasing people to confirm their compliance.
Peter Murphy, Head of Compliance and Regulatory Affairs at Friends First said:
‘We need to be able to do more than simply say we’re complying with rules and regulations but be able to prove it’.
Financially regulated organisations are now using technology to take much of the leg-work out of confirming compliance. To achieve a 100% Policy Awareness across their business, companies have stopped chasing people around, instead they are automating the process, saving time and resources.
This in turn provides a far superior way to prove compliance and ensures that policies are not only read but are understood.
A recent Accenture report recommends that companies should be the Disrupter, not the Disrupted. Here we see that compliance provides a competitive advantage and acts as a means to avoid reputation damage.
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