Compliance is a continuous journey, not just a one-time tickbox. Using Regulatory Technology (RegTech) to develop a businesswide culture of compliance can provide numerous benefits for organisations. Leveraging regtech can significantly contribute to the development of a positive compliance culture by increasing efficiency, accuracy, and transparency, while also reducing risks and costs associated with non-compliance. It is important, however, to ensure that regtech solutions are properly integrated into your business’ existing processes and aligned with your specific compliance needs.
Making compliance an integral part of company culture requires a deliberate and sustained effort. So, how can you integrate compliance as an embedded component of your business?
- Lead by example: Leadership’s commitment to compliance sets the tone for the entire organisation. It is crucial that senior executives and management demonstrate a strong commitment to compliance and their actions, messages, and decisions should look to emphasise the importance of adhering to regulations.
- Cultivate awareness: Nurture a profound understanding of compliance among your workforce. Clearly communicate the significance of compliance to all employees and conduct training, workshops, and communication to instil awareness and appreciation, ensuring everyone is on the same page.
- Stay ahead of change: Embrace a proactive stance by closely monitoring and quickly adapting to regulatory alterations. Periodically assess the effectiveness of your compliance initiatives and encourage feedback from employees, review compliance processes, and make necessary improvements. This demonstrates a dedication to staying ahead of the evolving compliance landscape.
- Build reputation and trust: Not only for customers but employees too. Intertwine compliance with ethical principles and demonstrate that it’s not just about following rules, but about upholding values that shape your organisation’s identity.
- Collaborative efforts: Encourage collaboration on compliance initiatives. Different perspectives better the compliance strategy and demonstrate a shared commitment. Make sure to highlight instances where compliance efforts have helped the company avoid risks or adhere to regulations and celebrate these successes to reinforce the positive outcomes of compliance.
- Education and training: Provide regular training sessions on compliance requirements, regulations, and best practices as well as easy access to your company’s compliance resources/guidelines. It is important that employees understand not only what needs to be done but also why it matters.
What are the benefits of technology-led compliance?
Ensuring an integrated approach for company culture is of the utmost importance both internally and externally, as are the benefits from using a technology-led solution. It offers improved efficiency, accuracy, scalability, and adaptability, ultimately contributing to better risk management and a stronger culture of compliance within a business.
Technology-led compliance offers a range of significant perks for organisations seeking to enhance their regulatory adherence and overall risk management practices.
Here are some of the key advantages:
Efficiency and automation: Technology automates manual and repetitive compliance tasks, freeing up valuable human resources for more strategic and value-added activities. This efficiency will also reduce the risk of human errors and ensure a consistent compliance procedure.
Real-time monitoring and alerts: Advanced monitoring tools provide real-time insights into compliance status, allowing organisations to identify and address potential issues as soon as possible. Automated alerts can notify stakeholders about disruptions to compliance standards, enabling immediate action where needed.
Data accuracy and analysis: Technology-enabled compliance processes ensure accurate data collection, analysis, and reporting. Data-driven insights provide a comprehensive view of compliance performance, aiding in informed decision-making.
Risk assessment: Technology facilitates robust risk assessment by analysing large volumes of data to identify potential compliance risks. This means companies are able to proactively address vulnerabilities and implement effective risk mitigation strategies.
Scalability and adaptability: Technology solutions can easily scale to accommodate growing compliance demands without the need for proportional increases in manual efforts. Additionally, technology allows companies to quickly adapt to changing regulations and compliance requirements where necessary.
Centralised documentation and audit trails: Digital platforms provide centralised repositories for compliance-related documentation and audit trails. This simplifies the process of generating reports, facilitates auditing, and supports regulatory inquiries.
Enhanced communication and collaboration: Technology fosters improved communication and collaboration among different departments and teams involved in compliance efforts. This integrated approach streamlines information sharing and decision-making.
Cost savings: While there may be an initial investment in technology implementation, the long-term cost savings can be substantial. Automation reduces the need for manual labour, reduces fines and penalties resulting from compliance breaches, and optimises resource allocation.
Time savings: Automation of compliance processes significantly reduces the time required for various tasks, such as data collection, analysis, and reporting. This allows compliance teams to focus on strategic initiatives and higher-value activities.
Regulatory reporting: Technology-led compliance streamlines the process of preparing and submitting regulatory reports. It ensures accuracy and timeliness in meeting reporting obligations, minimising the risk of regulatory sanctions.
Culture of compliance: Incorporating technology into compliance processes reinforces the importance of adherence to regulations throughout the organisation. It helps establish a culture of compliance by making compliance-related tasks more accessible, efficient, and integrated into daily operations.
To learn how NorthRow’s solution can aid your compliance processes, book a free demo and speak to one of our experts and transform your businesswide compliance culture.