Three things to keep in mind as you navigate the realities of the new compliance environment
The Australian finance and banking sectors have recently experienced one of the most tumultuous years. Organisations, left reeling after the Banking Royal Commission, were forced to take a long hard look at themselves and address the many compliance issues that had been ignored for some time.
In 2019 as the dust settles, leaders and organisations now turn their attention to navigating the ‘new normal’ and implementing robust processes that will comply with regulators and gain back the trust of their customers.
The following article explores three things leaders should keep in mind as they navigate the complex compliance environment in 2019 and beyond.
- Adapt to changing business priorities – understand your compliance obligations
While knowing what you have to comply with may seem obvious, the reality is, the definition of compliance environment is getting broader. There are demands not only from various government regulators, but other stakeholders as well (investors, customers etc.). The environment has changed and continues to evolve, so adapting your business priorities to being across what you must comply with is vital.
Furthermore, with compliance demands increasing, now more than ever, organisations should invest in dedicated resources to compliance management. Research conducted by SEEK, found that 13.5 per cent of Banking and Finance roles on SEEK are in the areas of Compliance and Risk. Realigning internal resources or hiring new compliance specialists will enable your business to adapt and evolve.
- Technology is there to help
A key challenge for leaders is lack of visibility of internal compliance practices. Legacy systems and hierarchical processes can all add to this challenge. Herein lies an opportunity for innovative, cost-effective technology solutions that will enable leaders to manage the new regulatory obligations their organisations face.
Partnerships with RegTechs deliver solutions that help streamline business processes and make compliance easier. However, despite this opportunity, organisations are hesitant. In research recently conducted by TAS, only 23 per cent of leaders said their organisation is currently engaging RegTechs, with a mere three percent actively pursuing RegTechs.
Given what the sector has been through recently, it is unsurprising that there is nervousness around relatively new and untested technology. However, if organisations are to remain relevant in today’s digital world, embracing solutions offered by RegTechs will give you a competitive edge.
- Measure your progress
Finally, it is crucial to rigorously monitor the impact of a new compliance approach. Traditional models were designed in a different era with a limited focus on actual risk identification and management. Monitoring should now link to the broader risk-management framework, governance, and processes.
While best-practice models for compliance monitoring are still emerging, leaders who invest in compliance and ensure progress is meeting desired outcomes will enjoy a distinct competitive advantage.
How TAS can help you
In today’s data-driven world, information security is vital. Without proper security, data breaches can occur resulting in costly losses. In fact, information security is one of the fundamental components of compliance.
Regulators and stakeholders demand that leaders take responsibility and are accountable for information security within an organisation.
TAS offers a number of consulting services, including security audits, as well as software solutions to maintain information security and comply with regulatory demands.