5 Ways To Keep Up With Regulatory Changes
Anytime you’re talking about the financial industry, it seems like regulations change every few years. Indeed, the past decade has been a time of rapid change for most Financial industries. Regulations tend to fluctuate and change. Just look at the Dodd-Frank Wall Street Reform and Consumer Protection Act. It’s had over 60 changes since it was enacted 12 years ago! The same thing can happen to any other regulations.
Regulations exist to help prevent fraud, keep consumers safe, and help reduce risk. Without them, businesses and consumers would suffer. So keeping up with the changes is critical to your continued and successful operation. In this article, we’ll suggest a few things you can do to stay ahead of the curve and prevent issues related to a regulatory change at your business today.
Keep Tabs on Ongoing Changes and Monitor For Compliance
The world is becoming more digitized and automated by the day. With that in mind, it’s more important than ever before to leverage technology to keep tabs on any potential changes in regulatory standards. That way you can monitor for compliance as needed and ensure your company/systems are up to date and compliant at all times.
Sometimes, an artificial intelligence or machine learning solution can help you monitor for patterns that might indicate breaches, non-compliance, or other issues. This can help you stay ahead of the curve and mitigate any possible damage or risk that comes with being out of compliance.
By using these technologies, businesses can improve their chances of maintaining compliance while reducing the risk of data breaches or other negative consequences.
Implement Regulations and Enforce Them
A lack of regulation can create financial problems and lead to bigger issues down the line. While it’s a good practice to ensure you’re regularly reviewing policies for compliance, your organization needs to be able to implement and before any changes when they occur.
Implementing and enforcing regulations is critical to the success of any organization, especially those in the financial and banking industries. Enforcement ensures that everyone is held accountable to the same standards. For regulations to be effective, they must be enforced consistently, uniformly, and regularly. This requires a commitment from management to provide the resources necessary for compliance, as well as the training and tools needed to do the job right.
Using data, analytics, and artificial intelligence/machine learning can help automate regulatory compliance while simultaneously helping companies adapt to changes in regulations in your industry. Because it draws from a large database and uses machine learning to help you monitor enforcement, get real-time alerts about issues or potential penalties, and much more. It’s a good idea to keep enforcement going properly to ensure compliance across the board.
Understand Regulatory Changes Affect Your Organization
Oftentimes, regulatory changes are made without warning and can have a significant impact on any organization’s ability to do business. It can happen swiftly, regardless of the industry in any era. It is important to be aware of these changes and their potential impacts so that you can plan for them and minimize any negative consequences.
By understanding how regulatory changes can affect your organization, you will be able to better manage any risks associated with the changes. A little understanding and education go a long way, so be sure to stay up to date on the most vital aspects of the regulatory environment within your industry.
Perform Regular Audits Of Your Compliance
As someone running a business, you likely perform regular audits of your compliance. By conducting internal audits, you essentially ensure your organization complies with all applicable laws and regulations. With an automated auditing solution, you can identify and address any areas of noncompliance easily without relying on spreadsheets and the human element.
Artificial Intelligence and databases help fill in the gaps so it’s easier to find the data you need and audit it appropriately. Internal audits also help to build an entire culture of compliance within your organization, ultimately demonstrating to regulators that you do what is required to protect your customers, employees, and the industry as a whole.
Use Regulatory Change Management Software
At the end of the day, the best way to manage regulatory compliance and changes at your company is to use robust regulatory change management software. So, what can this software do?
The better question is what can’t it do? This type of software has a plethora of built-in features that make it extremely worthwhile. Enforcing policies and changes using intelligent tools is only the tip of the iceberg.
You can also quickly and easily audit your compliance, update any new policies, manage pain points, and automatically manage changes. Better yet, you can perform a full impact analysis and monitor changes in real-time. This feature alone makes using regulatory change management software an integral part of running your company now and into the future.