The ability of an organization to deal with regulatory change effectively and efficiently is paramount to building a successful and sustainable compliance and risk management program. Managing this process can be a challenge depending on the size of the organization, its geographic breadth, industry segment and business specialties.
Moreover, interpreting and translating the deluge of guidance including guidelines, enforcement, proposed and final rules can be overwhelming. Legal and regulatory counsel, frequently both internal and external, must work together with compliance teams and the business to define appropriate tactical steps to operationalize laws and regulations.
Organizations should be pragmatic and leverage integrated solutions to help implement new and changing regulations.
- Sourcing information
The ability to get timely and accurate information on the regulatory environment is key. A single source of information containing all notifications to track as published by each regulator, in which notifications are summarized, analyzed and classified to support applicability to the organization, is very valuable.
- Daily feed of notifications
This delivers summarized and classified data of tracked regulatory developments, including proposed rules, final rules, concept releases, guidance and enforcement actions, into a single notification, containing direct links to the tracked rule and regulation.
- Interpretation of regulatory updates
The analysis, classification and interpretation of regulatory content in plain language provides great added value and insight for quickly determining if and how the change will impact the organization.
As the relevancy of laws and regulations becomes clear, it can be brought into the ongoing compliance and risk management process. Managing notifications, performing an impact assessment, remedying deficiencies, analysis, and updating the policies are all critical steps to managing regulatory change.
- Management and reporting
A challenge of many compliance and risk functions is the ability to articulate and demonstrate how the organization continuously conforms to guidance. Moreover, there needs to be reasonable assurance that action plans are complete and are being managed to their closure. Tools should provide key insights such as the current status of regulatory change management, high priority actions as well as risks encountered. In addition, insights about the team's capacity and throughput enable better planning and scheduling. Connecting all these dots will help organizations make informed decisions on regulatory updates.
The changing risk and regulatory landscape continues to shape and evolve organizations’ compliance and risk management programs. There is a migration within the lines-of-defense model towards collaboration between the first and second lines to be able to articulate how a law or regulation should be part of business processes. Modern technology such as the SAI360 Risk Platform offers organizations benefits such as reporting (including data portals and dashboards), a central repository in which to mine data, evidence management, control and remediation activities.
Managing regulatory change can be a daunting task to organizations. Automating regulatory change management and making it part of the organization’s integrated strategy to managing risk by finding the right tools and partners to keep up with regulatory notifications is key to ensuring efficient and effective compliance management. Only then will conformance become a natural part of doing business.
Related reading: Regulatory Change Made Simple Through GRC Software white paper
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