Regulatory Compliance is a process that is at the threshold of industrialisation and automation. The Regulatory volume and burden is only going to increase in near future. The tedious nature of the conventional approach to Compliance is creating Risks, and to manage these processes sustainably requires tremendous skill set. Morevoer, everyone in the firm are recognizing the need to have access to instant and targeted regulatory information impacting their particular areas of business. Regulatory updates are now news, alerts move markets and compliance is now business. Consequently, the role of the Compliance Officer is changing .
These are the driving forces making Regulation and Compliance the immediate targets for Automation. The budgets spent on compliance are not sustainable. Compliance is expensive, and some organizations simply don’t have the budget to embark on fulfilling all of the requirements. Business leaders are challenged with growing business lines and maintaining margins, whilst delivering on Regulation.
Automation of the Compliance processes provides enormous benefits to Internal Auditors and to senior management, including Centralization of Audit and Compliance information, Automation of controls testing, ability to manage third-party Risks and make Risk Management decisions that are based on real-time information and increased confidence in the Organization’s Security Compliance and Sustainability posture.
Let’s discuss in detail some of the game changing benefits of automating Compliance processes.
Benefit 1 : Centralized Audit and Compliance Information
By centralizing Audit information, an automated Compliance approach also offers Internal Auditors easy access to information on key Controls and real time Compliance status. So, automating the Compliance effort simplifies the work of Internal Auditors. Moreover, creating a central Compliance knowledgebase offers another major advantage of moving the Organization away from “point-in-time” Compliance management activities to a continuously monitored and sustainability driven Business process. As Internal Auditors are key stakeholders in Compliance programs, an automated Compliance process greatly reduces the effort required to find Audit information, thereby creating time efficiencies in Audit.
Benefit 2: Robust Automation features making way for structuring unstructured Compliance data
Emerging technologies in Automation like Predictive Analytics and indicators enable Companies to assess impacts and plan Risk mitigation and Artificial Intelligence (AI) permits the mass processing of Regulatory Information. Creating order from chaos, the understanding of the impact of Regulatory change on specific business areas in a classified way, allows firms to map Regulatory change to assets, understanding how a regulation might impact certain holdings, assets and liabilities.
Benefit 3: Achieving Cost effectiveness
Automation can significantly decrease the labour costs associated with manual and tedious Compliance efforts. In large Organizations, for example, there are plenty of third-party service providers, which need to be assessed annually and require more careful scrutiny from a security Risk perspective. As the cost of performing these assessments manually is significant, automating the Compliance process can simplify the assessment process and reduce costs.
Since we now know the innumerable benefits of Compliance Automation, let’s just understand how to put the “best foot forward” and start your journey of automating Compliance.
Identifying Scope of Compliance and Evaluation of Automation Readiness
It’s vital to determine the Compliance landscape is for your business, product or application to clearly define the scope of your Compliance automation readiness. Although conventional Compliance Management methodologies are focused on threat enumeration and countermeasure development, it’s important to define the Compliance landscape using a Risk-centric framework.
To measure Risks and Compliance activities on a continuous basis, Companies can consider establishing a database of Compliance knowledge, Security Controls, and Organizational hierarchy, including workflow capabilities, to ease administrative burdens. This database can now provide Security, Enterprise Risk Management and Compliance professionals with immediate, actionable insights needed to enhance the Organization’s Risk & Compliance posture.
Compliance automation platform/tools can help Organizations automate the overall Compliance process by providing a knowledgebase of Compliance Regulations and Security standards. By adopting a methodology that considers Compliance as a continuous process, rather than as a one-time event,we can transform Compliance, making it more efffective, sustainable and less costly activity.
Stay tuned for more interesting posts on Compliance, Predictive Risk Intelligence, and Emerging Technologies.
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