In today's regulatory environment, relying on just the annual review to assess the health of your compliance program is not enough. Regulatory expectations are evolving rapidly, requiring continuous monitoring and proactive management of compliance programs to stay ahead. This shift is not just a matter of best practice but a critical necessity for organizations in order to be able to both understand the most pressing areas of compliance to your firm and the effectiveness of your policies, procedures and controls in response to that risk.
The key to keeping up? According to Michael Rasmussen, GRC Analyst & Pundit at GRC 20/20 Research and author of the OCEG Policy Management Illustrated eBook, continuous and proactive assessment enables firms to swiftly identify compliance gaps and promptly implement corrective actions.
Continuous Monitoring and Rapid Response
Continuous monitoring allows organizations to stay ahead of regulatory changes and respond swiftly to new requirements. Regular review of policies, procedures, and controls ensures they remain effective and aligned with current regulations. Taking a proactive approach helps identify compliance gaps early and implement corrective actions promptly.
Prioritizing Compliance Risks and Obligations
Prioritizing compliance risks and obligations is also crucial. Organizations must allocate resources to address the most significant threats first. Assessing the potential impact and likelihood of various compliance risks ensures efforts are focused on those posing the greatest threat and reduces the likelihood of regulatory breaches and associated penalties.
Evaluating Policies, Procedures, and Controls
Regular evaluation of policies, procedures, and controls and continuous evaluation of your compliance frameworks ensures that nothing is falling through the cracks. Techniques such as gap analysis and benchmarking against industry standards provide insights into the effectiveness of current policies and highlight areas for improvement.
Targeted Testing and Monitoring of Compliance Metrics
Targeted testing and monitoring of key compliance metrics verify the effectiveness of compliance programs. Systematic assessment of specific compliance areas ensures policies and controls function as intended. Regular testing uncovers hidden compliance issues and provides data-driven insights into compliance performance.
Leveraging Technology for Compliance Agility
Incorporating technology and AI into compliance programs enhances organizational agility and responsiveness to regulatory changes. The right compliance technology can automate routine compliance tasks, provide real-time monitoring, and offer predictive analytics. AI-driven tools analyze data quickly and accurately, identifying potential compliance issues early.
This insightful webinar session offers practical insights into risk assessment and ongoing policy and procedure management in financial services.
We'll cover topics including
- Strategies for continuous monitoring and rapid response to regulatory changes
- Methods for effectively prioritizing compliance risks and obligations
- Techniques for evaluating the adequacy of policies, procedures, and controls
- Best practices for targeted testing and monitoring of key compliance metrics
- Insights into leveraging technology and AI to improve compliance agility
Michael will also answer questions from the audience.
More Resources
Learn about MCO's policy management solution
Watch the on-demand webinar: Beyond Wishful Thinking: How to Create a Thriving Culture of Compliance
Download the white paper Conduct and Compliance: A Collective Approach to Ethics and Accountability
Read the blog post A Lack of Compliance Evidence Means It Didn’t Really Happen
Learn about MCO's Know Your Obligations Compliance Oversight Solution
