Every industry deals with regulations in some capacity. It’s a critical aspect of operating in those sectors. Regulations exist to help protect organizations and consumers. After all, you wouldn’t want to deal with a bank that doesn’t follow the regulations that protect your money and privacy. Every industry has them, but the most prominent (and vital) ones are upheld in the financial, healthcare, pharmaceutical, and payment industries. Those regulations will largely depend on your industry, the service you provide, and what you do. Most industries need regulatory technology solutions (Regtech) to monitor, track, implement, and audit these critical changes. Regtech solutions can help you integrate regulatory compliance into your business.
Here’s how:
Identify Problem Areas
Although it seems obtuse and strange sometimes, artificial intelligence can be a powerful tool for many industries. It isn’t just relegated to playful attempts at generating images or other entertainment-related purchase purposes. Instead, artificial intelligence can help analyze and assess critical data to identify problem areas of the organization. This is especially useful for boosting compliance efforts. Artificial intelligence identifies problem areas in your organization’s compliance by analyzing large amounts of data and processing it quickly. This can help you identify issues in the company’s compliance efforts, which gives your human analysts valuable information they can quickly analyze and use to mitigate risks, enforce compliance, and monitor for any changes.
Automate Compliance
In addition to identifying problem areas, a powerful AI-backed solution can also assist with automating compliance efforts. Regulations change frequently. When they do, failure to comply and conform can negatively impact an industry. Unfortunately, human officers and employees might overlook or simply not realize a regulation has changed. Therefore, it won’t be updated in the system at the company and that will put the business in a state of non-compliance. Non-compliance leads to deleterious consequences such as fines, reputational loss, and sometimes even legal trouble. Artificial intelligence solutions can monitor for regulatory changes, examine how your company handles them, recommend enforcement actions, and ultimately reinforce the entire process at your organization. Integrating a regtech compliance software solution into your business is the best way to identify, automate, monitor, and enforce compliance and regulation changes throughout your industry.
Monitor Client Documentation
Employees should also understand and be able to manage change. This applies to both client documents and regulatory changes. Monitoring client documentation as part of your regulatory compliance procedures is vital. Make sure you have a process in place for reviewing changes to client documentation as well as regulatory updates. This way, you can ensure that your firm is always up-to-date with the latest regulations and requirements. In addition, make sure you have a process for training employees on new client documentation and regulatory updates. This is a vital component of any successful business. Employees should always know when changes are made so they can update their knowledge base and make the appropriate changes. Keeping everyone on the same page is crucial for regulatory compliance and should not be overlooked.
Develop Cross-Border Data Policies
In the current era of digitization and everything expanding globally, customers have more of a responsibility to ensure their customers’ data is protected. To that end, every company needs an efficient data policy. One of the regulations to help ensure this happens is General Data Protection Regulation (GDPR). A global privacy policy and cross-border data policies are necessary to protect data and enforce GDPR regulations. Companies can use data-sharing agreements to manage third-party access to customer data and avoid potential liabilities related to the misuse of customer data. Without a strong regtech system in place, it would be quite difficult to comply with GDPR and develop the necessary policies to ensure data gets protected throughout the entire organization and its daily operations.
Auditing
In order to stay compliant with regulations in any industry or sector, it’s essential to understand how they affect your organization. Auditing can help you get the information and insight you need to make critical decisions. Conducting an accurate audit can be challenging for larger organizations. But doing so successfully helps with managing risk and remaining compliant across the board. Audits reinforce enforcement standards, help companies monitor their procedures, and identify non-compliance areas. Auditing can also generate reports that provide a more complete picture of an organization’s compliance status and help identify where regtech solutions are needed. Using the information you obtain from your audit can help you stay compliant in the face of frequent regulatory changes within your industry.
