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By Galina Korshunova
As 2024 unfolds, integrating cutting-edge technologies into compliance strategies has become more than a choice; it's a necessity. Business risks are on the rise, heightened by the new modus operandi in a post-pandemic market, the geopolitical turmoil of the last two years, the digital asset economy, and the ensuing cybersecurity concerns, among others. This has produced a spike in regulatory activity and more complexity for compliance departments.
Businesses grapple with rules that span many jurisdictions, each with its unique requirements and frequent updates. As a result, the traditional methods of compliance management, with perpetual document reviews and multiple databases to consult, become next to impossible to sustain manually even for a small organization. This creates a true need for technology solutions to automate processes that take up too much time.
This blog explores how compliance professionals can leverage technology and artificial intelligence (AI) solutions to enhance efficiency, accuracy, and proactive risk management, ensuring their organizations not only comply with regulations but also gain a competitive edge.
One of the most pressing issues in regulatory compliance is keeping pace with the ever-evolving regulations. The latest technology offers dynamic solutions with automated systems and AI-driven tools. They can track and interpret regulatory changes as they are introduced, offering compliance professionals a much-needed respite from the constantly shifting legal landscape. By employing these automating technologies, organizations free up manhours, save on costs, and minimize the risk of non-compliance and the associated penalties at the same time.
On top of that, the latest compliance management solutions offer one centralized place to gather, analyze, and present organizational risks comprehensively, together with policies and controls. Having one central compliance hub not only eliminates siloed processes but also simplifies audits by showcasing complete policies, risks, and controls on one streamlined platform.
Learn more about AI-driven compliance tools
Effective compliance relies heavily on being accurate, timely, and complete when adapting to new legislative developments. Yet, the volume of regulatory change is so large that compliance teams are sometimes forced to cut corners.
Having more tech-driven automation and generative AI tools significantly reduces the time and labor involved in routine compliance tasks, such as data collection, monitoring, and reporting. These technologies also minimize the chances of human error, leading to more holistic and accurate compliance practices and ensuring that critical information is accurately captured and reported on time.
Generative AI, specifically, is a great tool to retrieve and digest complex legal content, as well as draft and format policies and controls, as it can quickly process every law and legislative change out there. For generative AI to work well as a compliance tool, however, it needs a robust legal database and regulatory change system as a source to produce accurate answers. Experts normally require proper citations that are grounded in primary law and legal authoritative documents.
There are compliance-specific solution providers out there that focus on one or a few specific needs within the compliance function, while others offer more comprehensive options that cater to the entire lifecycle of compliance management from top to bottom. Comprehensive solutions, like Regology, include a generative AI assistant, a self-updating law library, and both regulatory change and compliance management on one platform.
Given today's vast amount of regulatory changes, manual compliance management is inherently reactive, addressing compliance issues as they arise through enforcement actions. Furthermore, there's an absence of a well-defined starting point. When companies expand into new markets or introduce new products, they encounter diverse regulatory environments without a pre-established compliance framework, which would otherwise facilitate a basic level of readiness. This leads to an ongoing concern: whether your new compliance program for that specific business expansion matches the company's overall compliance level.
With so many laws and regulations to keep track of, compliance professionals face an uphill battle every time. The amount of data to comb through is enormous, and with the number of bills, laws, and regulations skyrocketing in recent years, it is next to impossible to track and manage this process manually.
Advanced data analytics are transforming how organizations approach risk management. Today’s dashboard capabilities offer real-time visibility into regulatory alerts and compliance status, helping compliance teams proactively manage new regulations and alerts. These tools help identify potential risks before they become significant issues. By analyzing data comprehensively, organizations gain a deeper understanding of their operational risks and can take preemptive action to protect against potential violations and reputational damage.
Organizations that don't wait to integrate technology into their compliance framework often enjoy a competitive advantage. While the initial investment in compliance technology might seem daunting, the long-term benefits are substantial. Efficient operations, quick responsiveness to regulatory changes, and a strong ethical standing are just a few of them.
Technology also plays a pivotal role in nurturing a culture of compliance within an organization. Transparent and accessible compliance processes, enabled by technology, encourage employees at all levels to engage with and uphold compliance standards. This cultural shift is fundamental in building a sustainable and ethically sound business environment. In a marketplace that values transparency and accountability, these attributes can distinguish an organization from its competitors.
When selecting the right compliance solution for your line of business, it is crucial to focus on functionalities and features that streamline regulatory updates in your industry and enhance process efficiency. The solution should allow for setting up regulatory change alerts relevant to your organization (reducing alert noise), organizing and filtering information by topics, business segments, and jurisdictions, as well as identifying gaps in current regulatory requirements.
Assess if the solution can support multiple teams and topics across various departments, map risks and controls to corresponding legal requirements, and if there are integration capabilities with third-party software solutions available.
Explore Regology Solution Here
As we navigate through 2024, it is clear that the integration of technology in compliance is not just a trend but a fundamental shift in how organizations approach regulatory obligations. It's a present-day necessity that paves the way for efficiency, accuracy, and sustainable business practices.
In light of today’s regulatory rigor, the role of compliance professionals is more critical than ever. By leveraging technology, they can ensure that their organizations not only comply with current regulations but are also well-prepared for the future. The intersection of compliance and technology is where strategic transformation begins, marking a path toward a more efficient, secure, and ethical business environment.
Gearing Up for 2024: Regulatory Developments to Watch
Optimizing Risk Management: The Strategic Edge of Generative AI
Understanding the Limitations of Generative AI as a Compliance Tool
