The thought of an employee working from home and revealing company private information is a compliance nightmare and it deeply frights regulators. Working from home increased Compliance fears and created numerous challenges for firms. Compliance had to carefully think over the best way to monitor conflicts of interest, manage the risks around the identification, handling and disclosure of inside information because of the new circumstances.
Are you using outdated technology or no technology at all?
According to regulators, the biggest challenge for compliance during Covid-19 was to make sure that their existing systems and controls were able to protect against illegal disclosure of inside information and possible conflicts in the same way as they would in an office environment. Also, whether their systems were continuously mitigating and identifying risks, conflicts of interest and misconduct.
The key during these times for compliance is to have access to all data to make the right decision at the right time. When using outdated compliance technology or no technology, it isn’t possible. Many companies still not having an efficient method to identify risks to mitigate misconduct, an issue recently pointed out by the FCA on their Market Watch 63.
In many cases, firms use the inefficient method to manage their compliance obligations on spreadsheets. It makes the control and management of information very difficult, resulting in poor reporting. On the other hand, companies are using inefficient technologies, which may be costing much more in the long-term.
Regulators adds new pressures for Compliance teams. But at the same time, new technologies emerge to assist these teams to do more. Modern compliance technology can help companies to maintain the compliance program in a single, automated solution. Systems gather information easier and display it in a way to facilitate analysis for continuous improvement of compliance activities and monitoring.
Outdated compliance technology costs lots
Compliance technology has the intention of helping to augment compliance, save compliance staff time when doing small tasks and reduce human error. Nevertheless, for many companies their compliance technology become a source of frustration, raising the question: what is the cost of outdated technology in the long-term?
It can cost lots for sure; technology can be seeing as a double-edged sword. Risks can emerge from technical issues, poor oversight, and lack of control. It’s more important for compliance to foresight than to hindsight, and only a modern compliance technology can enable compliance to gain real insight to mitigate the risks.
The frustrations of outdated compliance technology
Technology is always evolving, and it is a rule of thumb for every RegTech to keep up with regulatory updates and constant investment in improvements. If the provider is struggling to keep up with changes it means you are relying on outdated tech.
Other points that can have a disastrous outcome when using outdated compliance technology are:
- Poor data
- Data loss and security
- Cyber attacks
- Poor technical support or non-support from the providers
Furthermore, for technology that requires daily input and usage such as compliance softwares, it’s expected an exceptional user experience, which will lead to higher adoption rates among the organization. When technology fails to deliver a good user experience and to provide easy access to the software through a mobile app, it is limiting the company’s capability to respond rapidly to their current compliance needs.
Organizations are seeking ways to make compliance more effective while reducing the operational costs of compliance activities. In the beginning, it requires investment in a more suitable technology to reduce the costs in the long-term. The use of modern compliance technology creates adherence across the board and enables for a holistic view of risk and compliance.
Whether you are using outdated technology or no technology at all, it may be time to review the risks it is bringing to your business and how to quickly remedy it. To learn more about MCO and our suite of solutions, contact us today!