Compliance professionals are entrusted with the critical task of navigating through a web of ever-evolving regulations, staying up-to-date with new legislation, managing risk, and ensuring adherence to stringent standards. As businesses expand globally and managing regulatory change becomes increasingly complex, the need for robust risk and compliance software and sophisticated tools to support them has never been greater.
In an engaging episode of the Compliance Perspectives podcast, Amanda Cohen, Vice President of GRC Products at Resolver, shared her expertise on risk and compliance software and its potential limitations and opportunities. As an expert in the field, Cohen provides valuable insights into the realities of using compliance management software and highlights essential aspects that compliance professionals should consider.
Misconception: Compliance software solves all regulatory issues
One central point Cohen addresses is the common misconception that risk and compliance software alone can solve all compliance-related issues within an organization. She emphasizes that purchasing software won’t make your organization fully compliant in an instant. Compliance solutions also don’t replace the need for a compliance culture that starts from the top. “Buying software doesn’t automatically make your organization care about compliance, nor does it automatically put you into compliance. There’s a lot more behind the scenes that the organization needs to align on in order to be really successful.”
To be truly compliant, an organization must have executive-level endorsement, leaders who prioritize compliance, and a cultural shift that encourages agile decision-making with compliance in mind.
Read: Building a Culture of Compliance
Truth: Compliance management solutions still need humans
While risk and compliance software can be a powerful tool, it has its limitations. Cohen cautions against expecting software to replace the human element in compliance decision-making, especially when it comes to risk assessment and methodology. “Understanding what high risk and critical risk mean to our business is something you want to do outside of technology. Have those conversations and get organizational alignment.”
However, while understanding risk in a specific organizational context requires human expertise and calibration, compliance management software can help collect risk data and adhere to predefined methodologies. We see time after time how centralized data benefits risk and compliance teams by winning back countless hours previously spent chasing information, which can then be redirected into driving strategic insights for a more mature compliance discipline.
Truth: Three key benefits of regulatory compliance software
While risk and compliance software doesn’t guarantee compliance on its own, it proves to be a valuable tool in enhancing efficiency and streamlining various processes. Cohen outlined several areas where this solution excels:
1. Managing regulatory obligations with ease
A successful regulatory compliance management software solution should help track the organization’s regulatory obligations accurately and efficiently, ensuring the compliance team always works with up-to-date information. Cohen states, “Your tool can flow that information seamlessly into your process… parsing down to specifically what your obligation needs to adhere to.”
Watch: Transforming Regulatory Complexity into Risk Intelligence
2. Streamlining compliance processes
Risk and compliance software streamlines processes, empowering easy engagement and collaboration with the first line. By collecting consistent information from various stakeholders, compliance teams can better prioritize regulatory demands, actioning them quickly so time previously spent chasing information can be diverted to gleaning strategic insights and value for the business.
3. Simple and digestible executive reporting and insights
Risk and compliance software consolidates your data and provides valuable insights into an organization’s compliance status, saving time and effort in reporting to executives or regulators. As Cohen aptly puts it, “If your tool can consolidate all the information, you can understand how everyone is doing, and that’s going to save you a tremendous amount of time.” For instance, Resolver’s integrated GRC software solution recently underwent assessment by Forrester Research, which concluded that Resolver users experience a 75% improvement in compliance testing efficiency.
Truth: AI and machine learning simplify compliance
In the podcast, Cohen also delves into the potential benefits of AI and machine learning in compliance processes, especially in the realms of regulatory tracking and the automation of manual tasks. “AI can swiftly handle these tasks for you, allowing you to leverage a tool to gain those insights,” she explains. “This automation streamlines processes that are typically manual or inefficient.”
AI can substantially reduce the time and effort needed to build a regulatory inventory, offering valuable insights that might be challenging to discern through manual analysis alone.
Truth: Consider maturity and scalability when choosing a risk and compliance solution
For compliance professionals seeking software solutions, Cohen suggests considering the organization’s maturity level and future growth. A technology solution should not only address current needs but also be scalable and adaptable to future requirements. She elaborates further: “Make sure that the software can easily scale up with your organization… ensuring it can support your long-term goals.”
Ultimately, risk and compliance software should be viewed as an enabler, complementing a robust compliance program and culture rather than serving as a standalone solution.
Truth: How risk and compliance software improves efficiency and processes
Risk and compliance software offers excellent opportunities for enhancing efficiency and streamlining processes within an organization’s compliance program. However, it’s essential to remember that this platform is not a one-size-fits-all solution and can’t replace the human element of compliance culture and decision-making. By understanding its limits and opportunities, you can make well-informed choices in selecting and utilizing risk and compliance software to support your organization’s compliance efforts effectively.
If you’re seeking a simplified compliance management solution that integrates with regulatory technology content libraries such as Ascent and Lexis Nexis, Resolver’s risk and compliance software offers a solution tailored to your specific needs.See how Resolver delivers a 75% improvement in compliance testing efficiency, as determined by Forrester Consulting’s Total Economic Impact™ (TEI) study.