As technology is advancing so is compliance within businesses. This is proving to be a challenge to many companies as new regulatory updates such as GDPR and MiFID II which were proposed in 2017 are now in place. This year compliance officer’s main priorities are in relation to these new changes and how to adhere to and keep up to date with regulatory updates and advances in technology.
From speaking & surveying Compliance Officers in both the financial and healthcare sectors we have found the top 5 trends Compliance Officers / Managers are encountering in 2018:
- The Need To Replace Legacy Systems & Outdated Processes
The term “Legacy System” is defined by Gartner as “Any system that is not sufficiently flexible to meet changing business needs”. With the wide-ranging changes to regulations which have taken place and will continue to take place it is important for organizations to update their legacy systems and internal processes when it comes to compliance. One of the key issues with a legacy system is it does not provide organizations with the flexibility required to carry out day-to-day compliance tasks and to customize and change elements of how the system currently works.
It’s also surprising to see the amount of risk & compliance officers who still use manual processes such as Excel to manage their compliance. Many officers spend their day copying and pasting data from one spreadsheet to another in an effort to compile data gathered from colleagues. This leads to them spending more time compiling compliance data rather than analyzing it.
A recent trend in the industry has seen Compliance Officers and organizations alike looking for a way to update these processes and legacy systems. Many are now turning to RegTech solutions which can automate the process of the collection and collation of data allowing for compliance officers to easily analyze compliance data. ViClarity have implemented our RegTech solution into numerous Financial and Healthcare organizations and address the problems outlined above. The solution can save a compliance officer up to 60% of the time spent gathering data and saves on average 40% of the costs associated with compliance.
- Software Technology Continues To Get Smarter And Easier To Use
Governance, Risk and Compliance Management software continues to get better in 2018. Cloud based tools are enabling companies to have a better look at risk and compliance issues. With GRC tools now accessible through many devices such as phones, laptops and tablets the compliance officer is never too far away from accessing their organizations compliance information.
Solutions such as ViClarity are constantly updating their product with new features which are suggested by our client base. They have recently released a full risk and compliance library which updates on a regular basis and contains the latest compliance templates from global regulators such as the FDIC, CMS, Central Banks, HIPAA and a whole host of regulators. These templates cover updated regulations in sectors including Investments Management, Banking, Insurance, Credit Unions, Hospitals, Long Term Care Facilities and many more.
- Cyber Risk Management Is Becoming Increasingly Important To Organizations
Cyber Risk Management is vital for firms as customers are becoming even more sensitive to the data that they provide to organizations. A Cyber breach could have a detrimental effect on the organization’s reputation and cause potential clients to go elsewhere. Cyberattacks are at an all-time high with hackers looking to penetrate corporations through numerous channels. Compliance & Risk Officers are now turning to technology providers to help them identify and mitigate any potential cyber breaches.
Organizations have responded by implementing new methodologies and systems that have empowered Risk & Compliance officers to make informed decisions to reduce their organizations risk. A system like ViClarity enables the Risk & Compliance Officers to evaluate all the cybersecurity controls in place in the organization and view how cyber risk is performing on a monthly basis. Areas of concern can be quickly identified and actions taken to resolve the issue, all within the system.
- Increased Automation:
Compliance Officers have noted that their organizations are becoming increasingly more automated. Whether it be in the Accounts, HR or the Compliance department, many aspects of day-to-day operations are becoming automated. Between 2008 and 2016, there has been a 500% increase in regulatory changes in developed markets, which has led to 10-15% of the total workforce of Financial Institutions working under compliance functions.
Knowing this, it is increasingly important for organizations to continue to increase automation especially in the area of compliance. RegTech solutions like ViClarity are proven to save organizations up to 60% of the time spent on compliance allowing them to assign employees to other areas. Other areas which ViClarity can automate under one centralized solution include Risk Management, Vendor Management (Risk Assessments, Vendor Due Diligence, Vendor Onboarding,) Strategic Plan Monitoring, Cybersecurity and many more.
- Improved Performance:
The companies that have engaged with GRC software have found an increased benefit to their organization over those who do not use GRC. The organizations who have implemented RegTech solutions have seen a shift in compliance efforts from producing reports to actual analysis of data, leading to greater value added exercise. These organizations have benefited from a more real-time management of regulation, improved ability to assess regulatory overlaps and reduced costs due to improved efficiency.
See How RegTech Can Transform Your Organization
There is no doubting that a common trend for all Organizations and their Compliance Officers is that RegTech can greatly improve your business performance. Implementing a RegTech solution provides short term benefits such as a reduced cost of compliance, sustainable and scalable solutions and risk and control convergence. In the long term this leads to positive customer experience, increased market stability, improved governance and enhanced regulatory reporting.
ViClarity is an award winning and trusted provider of RegTech solutions to both the Financial and Healthcare sectors. ViClarity’s easy to use, cloud based solutions can be easily implemented and require no IT infrastructure. We have a broad range of modules available which can be viewed at viclarity.com
If you would like to see how ViClarity could transform your organization, book a 45 minute demonstration today by contacting email@example.com