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6 in 10 Companies Uncertain Tech Is Prepared for Regulatory Changes


Despite the possibility of technology to help firms become proactive in their compliance, a good number of them are yet to make effective use of it to adapt to the potential change in regulation that normally accompanies a new administration.
 
Reiterating Amy Matsuo, Principal and National Leader of KPMG LLP’s Regulatory Risk Practice, the first step in getting set for a change in regulation is putting a centralized obligations inventory in place. This enables technology and data analytics to bring about a great distinction with regards to adapting to change in regulation and compliance with requirements.
 
Nevertheless, a survey conducted recently has shown that six in ten chief compliance officers are uncertain whether technology infrastructure can be easily adapted to align with the change in regulation, many still depend on a manual process.
 
Many technologies are in vogue today that can help improve obligations inventory and make it up to date. Presently, aligning inventory to procedures and policies, controls and processes as well as monitoring and testing is still done manually. Matsuo is of the view that to solve this, it’s essential to understand what you want, and decide the appropriate technology for it.
 
Data quality is another notable problem facing financial executives. Fifty-one percent of the CCOs reviewed noted the importance of enhanced data quality for the aggregation of risk data and reporting as a major issue with compliance.
 
Reiterating Matsuo, big firms face data quality issues. They are spread in various jurisdictions and systems. The principles which have been applied to financial data are now been applied in the non-financial space. Similar rigor is now present in data quality. Ineffective usage of data and analytics pose huge risks, however, the opportunities it presents are quite as huge.
 
According to Matsuo, the use of data analytics for surveillance, employee or transactional presents the possibility of viewing multiple points at once, in a manner that is impossible for the human mind. The ability to look at it is great and the ability to understand operational metrics and correlate them to potential compliance risk as well as the ability to swiftly switch between things presents a huge growth prospect.
 
About 27 percent of CCOs strongly affirm that their compliance function consists of a change management process to pick and incorporate changes in regulations and laws into their procedures and policies. With changes in regulatory stipulations, firms must concentrate on investing wisely in aspects of their compliance programs and practices that will assist them with effective operation and compliance. Matsuo advices financial executives to observe the technological investment they used for frontline, and employ the same in their back office.
 
For finance executives, it’s basically looking at technological and automation investments for frontline, client experience and employing such technology in the middle and back offices to make automation better. Imagine the level of effectiveness and efficiencies obtainable and the ability to sustain the process. To a good extent that’s where we presently are.