When innovation accelerates at a dizzying pace, your organization has no choice but to keep up with the complexity of regulatory compliance. As industries piece together each rule, regulation, and obligation, the challenges of meeting compliance standards have never been more formidable.
Imagine regulatory compliance as a multifaceted puzzle, each piece representing a specific regulation or requirement. Traditionally, fitting these pieces together has been akin to assembling a monochromatic puzzle. If all pieces are roughly the same color, the frame might be straightforward, but fitting the central pieces demands precision.
Fortunately, technological innovations have given rise to a game-changing tool — regulatory technology, or “RegTech” — that serves as a navigational guide through this complex landscape. As Pooja Azhalavan, Product Marketing Manager at Resolver, highlights in a cohosted webinar with Ascent, “Leveraging data and analytics capabilities from regulatory technology helps identify compliance risks in strategic decisions and monitor the effectiveness of controls.”
Read on to learn how RegTech solutions can empower your organization to achieve regulatory compliance more efficiently, helping compliance teams to anticipate potential pitfalls and swiftly make real-time adjustments. Want to transform compliance challenges into strategic advantages? Let’s go!
Leveraging regulatory knowledge automation with RegTech solutions
As industries grapple with an ever-growing volume of regulatory changes, the burden on compliance teams intensifies. Azhalavan explains, “This rapid growth in standards, laws, and regulations poses a considerable burden on compliance teams, with regulatory change volume increasing by 10% annually in recent years.”
Fueled by machine learning and natural language processing (NLP), RegTech solutions can be transformative for teams addressing this challenge. Machine learning algorithms learn from historical data, identifying patterns and correlations that may elude human observers. NLP empowers systems to interpret human language, extracting key insights from vast textual data — a task that would take humans considerable time.
Dominick Campagna, VP of Sales at Ascent, underscores the power of machine learning and NLP, stating, “By inputting this data into the system, compliance professionals can be relieved of the manual work involved in going through various laws and regulations to identify applicable obligations.”
As teams “train” these systems with past compliance data and relevant industry standards, they become adept at identifying the regulations that truly matter. As your organization evolves, these profiles adapt, ensuring that the regulatory landscape is always viewed through a lens customized to your operations. Instead of relying on manual checks and updates, RegTech systems continuously scan relevant sources, highlighting alterations that might impact your compliance posture. By distilling complex regulations into actionable insights, organizations can confidently navigate the regulatory landscape, mitigate risks, and focus their energies on innovation and growth
Benefits of a centralized regulatory compliance management system
Centralization proves invaluable for compliance teams, functioning as a comprehensive risk register and capturing compliance-related data, activities, and insights in one accessible place. Azhalavan explains, “A centralized system accessible to multiple users within the organization can serve as a risk register, connecting regulatory compliance, policies, and controls to the corresponding risks across business units.”
Centralized repositories also streamline communication, enhance transparency, and facilitate collaboration across departments to enable compliance teams to better identify patterns, trends, and potential issues. By making information requests and submissions visible across departments, the front line is unburdened by seemingly similar asks, and reporting to the board often goes from weeks to mere days.
Simplifying compliance challenges with AI-enabled process automation
Manual compliance processes are often time-consuming and prone to human error. This vulnerability can expose organizations to unnecessary fines and breaches that stem from oversight or misinterpretation. Process automation eliminates or greatly reduces this margin of error, executing compliance tasks precisely and consistently. Automated workflows ensure that the right steps are taken at the right time, automatically notifying compliance risk owners of deadlines and reducing the risk of violations.
Powered by advanced artificial intelligence (AI) capabilities, process automation built into compliance management software that integrates with RegTech solutions can free up compliance teams to focus on strategic initiatives. By leveraging AI’s cognitive abilities, organizations simplify complex processes, streamline workflows, and navigate compliance challenges with newfound efficiency.
Delivering compliance ROI through AI
With its capacity to process vast amounts of data and recognize patterns, AI is a formidable ally in the realm of regulatory compliance management. AI-powered systems excel at sifting through an intricate web of regulations, analyzing them against an organization’s operations, and determining their relevance. By automating the assessment of regulatory obligations, organizations can ensure that their compliance efforts are precise and that no crucial requirement goes unnoticed.
As automation optimizes compliance workflows, teams can redirect their efforts toward more strategic initiatives. With the ability to provide real-time insights and predictive analytics, compliance professionals become essential contributors to the organization’s overall strategy. This enhanced influence translates into greater buy-in from leadership and other departments, fostering a collaborative culture that values compliance as a vital pillar of success. As the potential of automation continues to unfold, the synergy between technology and compliance will be a driving force in shaping the future of regulatory adherence.
The future of RegTech solutions in driving a compliance culture
“The future of compliance lies in technology, but it’s equally important to nurture a compliance culture within the organization,” Azhalavan says. The symbiotic relationship between adopting emerging technologies like RegTech and fostering a compliance-oriented culture can create meaningful change in your business’s outcomes. The future of compliance hinges on embracing innovative methodologies, enabling deeper insights, and transcending traditional organizational boundaries.
We know through experience that a siloed approach to compliance inhibits growth and innovation. Compliance cannot be confined to a single team; it should be a shared responsibility across the organization. Compliance management software that integrates with your RegTech solution can facilitate this by providing a centralized platform for communication, data sharing, and collaboration. When teams work together, compliance becomes an integrated aspect of the organizational culture rather than a detached function.
As regulatory requirements continue to evolve, traditional approaches to compliance will fall short. By staying ahead of the curve and integrating RegTech solutions, AI, automation, and data analytics into their processes, organizations can ensure their compliance efforts remain agile and accurate. This means not only understanding the current obligations but also anticipating future shifts. Technology-enabled insights enable compliance teams to proactively adjust strategies, reducing the element of surprise and ensuring preparedness for upcoming regulatory changes.
Gone are the days when compliance teams make reactive decisions. Utilizing data-driven insights and predictive analytics can offer invaluable guidance on potential risks and opportunities. This shift elevates the compliance function from a necessity to a proactive, influential contributor to the organization’s overall success.
READ: How to Build a Compliance Culture
How Resolver transforms regulatory compliance complexity into risk intelligence with AI
From streamlining complex processes through automation to harnessing AI’s analytical prowess for proactive decision-making, AI-driven RegTech solutions offer a beacon of innovation. When integrated with compliance management software, they empower organizations to not only navigate the intricate web of regulations but also to anticipate shifts in the regulatory landscape. By fostering a culture of compliance that permeates every level of the organization, companies can fortify their operations against potential risks while capitalizing on new avenues for growth.
Our innovative GRC platform harnesses AI-driven RegTech to efficiently analyze vast volumes of regulatory data, liberating compliance teams from manual research. By providing real-time insights and updates, compliance teams can proactively keep obligations current, reducing non-compliance risk. Resolver’s regulatory compliance software links regulatory obligations to business risks, fostering collaboration with the first line, and nurturing a culture of compliance.
For a deeper understanding of “Transforming Regulatory Complexity into Risk Intelligence,” we encourage compliance professionals to watch the full webinar hosted by Resolver and Ascent. Discover how integrating a GRC system with AI/ML-based regulatory technology can offer a competitive and strategic advantage. Watch the webinar or book a Compliance Management Showcase now!