Regulatory challenges in 2022
With the global pandemic forcing many companies to rely on the digital world and its innovative technology, it is crucial that regulated businesses stay ahead of the criminals. The last 2 years have seen a record number of data breaches as the world shifted to the online space. So, it’s even more important that businesses adjust and enhance their compliance and risk management strategies to maintain resilience. In this blog we look at the challenges facing regulated business in 2022; and how digital transformation and new technology solutions can deliver corporate governance and compliant risk management operations.
Investing in a strong compliance function
A well-resourced compliance function that implements digital transformation, to successfully navigate the numerous regulatory requirements (that are subject to change), with the use of digital solutions, will be worth its weight in gold. It is recognised that this will require investment across technology, infrastructure and skillset, but there is proven ROI.
Knowing that the world produced twice as much data in 2021 as it did in 2019, and with this level predicted to increase exponentially over the next five to 10 years, technology is the way forward. Recruiting additional staff is not the answer – instead, automation will drive operational efficiency.
It is vital for companies to understand the importance of keeping up-to-date with emerging compliance trends. One of the most pressing issues for regulated businesses, is the time-consuming, inefficient, manual compliance processes that inevitably prevent businesses from delivering effective compliance management.
An inevitable by-product of advancement in technology, is even further development in the field of Artificial Intelligence (AI). Each year there is greater adoption of AI to deliver manual tasks and in 2022 we can expect to see further innovation. Robotic Process Automation RPA, for instance, is an advancement in technology that can undertake repetitive tasks, reducing manual effort and simplifying workflows. Making use of RPA tools in the compliance sector, allows for organisations to benefit from the digital automation that’s occurring, without creating extra work, wasting employees’ valuable time and resources, as well as eradicating human error. Many regulated firms are now using RPA solutions to improve KYC onboarding, compliance monitoring, (AML)/sanctions checking, regulatory reporting and regulatory change management.