Digital transformation is a trend term that we hear a lot among businesses. However, this so-called transformation hasn’t arrived yet in most of the compliance departments. Organizations are implementing digital transformation in other areas, but why not in compliance departments.
Some compliance departments have been experiencing a certain confusion and lack of preparation to set a strategy to implement digital transformation. A conduct risk software could be the basis of a future-proof and sustainable digital transformation strategy. However, software alone won’t do all the job itself, that is when the compliance department can fail to understand the role that such a solution has on the business.
What is digital transformation?
Digital transformation is more than you think, it isn’t just the use of technological applications, it is a mindset of the company to go towards technologies that help employees to get the job done, and even more to make their activities less stressful and fuss.
Think about the situation we are living now, the Covid-19 crisis is changing the way we work and turning simple tasks into a challenge as we remotely work. It became an even bigger challenge for organizations that don’t encourage innovation and/or are living in the past without developing a new business model that embraces technology in all departments.
You probably won’t believe, but many organizations can’t send their staff to work from home because they have not embraced technology in their model. Digital transformation means efficiencies, it improves the experience that your employee has with compliance tasks and can also improve your relationship with your employees.
After all, relying on a manual process is a recipe for failure. In response to that, a Conduct Risk Compliance solution is the most powerful tool for compliance officers to reduce the risks in the current climate of uncertainty. A robust and future-proof software should combine analysis into risks, integrate with other software, be simple and customizable to attend to your organization needs.
Positive impact of technology
A Conduct Risk Compliance solution can transform all the processes within your business. The compliance department can automate the monitoring and approval of employee compliance activities to fulfill the organization's compliance obligations and show regulators the work that the firm has done to avoid risks. The monitoring can include gifts and hospitality, political contributions, outside business activities, authorizations, registrations & licensing, personal trading and attestation & certifications.
This is not the only way a Conduct Risk Compliance solution can help your department to achieve its digital transformation goals. There are other aspects of a compliance department that a software can help you with, including future-proof your compliance strategy as far as possible.
- Competitive edge can be improved using programs of innovation, improvement of processes and use of tools to reduce challenges. However, when innovating your organization shows a great governance and strong compliance department that actively act. This is a competitive advantage and should be highlighted as not ever company brings it up as a competitive edge.
- Impactful decisions – A modern compliance department creates a flow of good reporting on conduct risk to board members and executives. Not just reporting is important, but the actions taken on the top of the reporting. That’s why technology exists, to deliver real-time information and reporting, showing who needs this information at the right time so that the compliance team can act quickly.
- Integration – when choosing a new technology, you may require that it integrates with other technologies you have or will have in the future. When talking compliance this kind of integration will provide transparency into your business going forward and increase the level of risk control.
- Ready to grow – if your firm is thinking about expanding to other markets, you need to be aware that this growth is just possible if your compliance department is strong enough to support and adapt the changes to come. Scaling isn’t easy for any company, so your compliance solution must be aligned with your business objectives to handle the various challenges that your compliance team will face when your company says it is ready for this global growth.
- Performance – the aim of technology is to drive efficiencies through the automation of manual processes. When a Conduct Risk Compliance software is implemented, the department productivity increases, and you will see the impact of this productivity on the business overall. Being able to monitor your employees’ compliance activity through a touch of a button on your mobile device is key for the success of your compliance program. Not to mention that your employee can also submit requests very easily when having a compliance app available. These effective steps will free up your employees’ time and they will be able to focus on more important and strategic tasks.
Moving from a manual process or replacing a system isn’t just for big firms. Organizations of all sizes can see the benefit of compliance solutions that helps the compliance department to address the risks and act quickly when needed.
Digital transformation has started in most companies if you are feeling that your department has the need for this transformation you can start asking our peers and investigating the benefits it can bring to your organization. Having a Conduct Risk Compliance solution will enhance and support compliance processes to meet regulatory obligations.
If you want to know how MCO can help, contacts us today.