Risk management is a continuous process rather than a linear one. A pragmatic Know Your Obligations (KYO) strategy starts with building an ongoing monitoring approach by deconstructing regulatory obligations and then measuring the performance of related procedures and controls to assure compliance. The final step is to evidence that compliance.
This is a critical part of the process because, as far regulators are concerned, without that supporting documentation, it’s like it didn’t happen.
Once upon a time, there was a company that was looking to purchase compliance software. The software and manual processes that the firm was using to manage compliance just weren’t keeping up with the firm’s growth and it was time to move on.
But like Goldilocks in the classic tale of the Three Bears, they found that not all compliance software was just right.
The Thomson Reuters® Regulatory Intelligence survey and report Fintech, RegTech, and the role of compliance in 2023 explores the way in which firms are addressing the deployment and management of technology solutions.
The report points out that digital transformation is a continuum, with many benefits but also some challenges along the way.
During the webinar Conduct, Compliance and Ethics in Capital Markets, an executive panel with speakers from FINRA, Northern Trust Corporation, MCO and Greenwich Associates discussed how technology and data management are key to an effective conduct risk strategy.
