Citigroup recently was publicly rebuked by regulators – and fined $400 million – for failing to improve its hodgepodge of risk and compliance systems. And Citi is not alone in receiving this level of scrutiny.
Regulators are now paying close attention to the processes companies have in place to manage risk holistically. Fines, reputations, and other costly damages are all very real consequences. And this trouble does not end with regulators.
Today’s world is filled with fast-moving and interconnected risks – and virtually every organization in every industry also must keep up with an ever-growing, ever-changing number of regulations with which they must comply. A single event can set off shock waves felt by multiple areas of the business. And without repeatable, sustainable processes to manage risk and compliance shock waves at a holistic level, the damage could be done before you even begin to figure out what’s happening.
Simply adding more people to the team is not the answer, as evidenced by Citi, which now has some 30,000 risk and compliance employees on staff. You have to have integrated technology in place to break through departmental walls and connect siloed information, so you can instantly understand what you’re facing, how everything interrelates, and the full impact on the business.
Here are five ways integrated compliance software can provide the reassurance regulators are looking for – while giving you the intelligent insights you need to keep your business running smoothly.
- Automates routines. Technology automates workflows, assessments, control testing, and remediation assignments, drastically reducing the amount of time and effort needed from the compliance team. Instead of repeatedly chasing down data, you can leverage a single assessment across multiple mandates, investigate facts, understand anomalies, and remediate issues.
- Keeps up with endless change. At last count, more than 56,000 regulatory alerts from 900 regulatory bodies worldwide were sent out in a single year. Integrated compliance software is designed not only to efficiently keep up with new regulations and laws but stay a step ahead of your compliance risk and the impact on the organization.
- Provides an audit trail of changes. Having all compliance-related information in a single repository with robust tracking capabilities provides you with a clear audit trail of who did what and when they did it.
- Facilitates collaboration. New-generation compliance software brings all corporate and legal policies, procedures, and requirements into one place that’s easily accessible to all. It breaks down silos, establishes consistency in processes and controls, and encourages a collaborative approach to compliance across the organization.
- Identifies irregularities. Integrated compliance software allows you to connect initiatives and data to uncover real insights about how one part of the program affects another and the cumulative impact on the organization. With better insight into your program as a whole, you can better identify, prioritize, and address issues before they escalate into full-fledged problems.
In today’s world, up-to-date compliance software that provides a single, integrated view is no longer something that’s nice to have – it’s a must have. If you’re lacking hard evidence that you have that level of visibility across your organization, regulators are sure to come knocking. Just like they did for Citi.