Automation Redefining Compliance Management: Top 5 Trends

Sumi S
09:00 am
06 Mar 2023

We frequently speak of compliance automation's outstanding advantages. With automatic monitoring and notifications, you may achieve compliance up to 90% faster and maintain compliance all year long.

Here is everything you need to know about security compliance automation, how it redefines compliance management one click at a time and the recent trends.

All is well and good, so, what does automatic compliance mean?

What is compliance automation?

Automation of compliance processes relies on leveraging technology to take the place of laborious manual tasks that were previously required. Using cutting-edge technology and compliance automation platforms ensures that all operations, procedures, and systems are compliant with the most recent regulatory amendments and specifications. Automation assists firms in being compliant by continuously observing any risks, changes, warning signs, or suspicious activity because compliance is a continuous process.

Businesses may expedite their compliance journey and fulfill all their duties, such as processes, risk assessments, control evaluations, testing, staff security awareness training, and remedial actions, in one location by utilising compliance automation.

Top 5 Trends for Compliance Automation in 2023

The way financial institutions handle regulatory compliance can be viewed as either a major roadblock or a business catalyst for those looking to grow their operations, access new markets, or increase their product offerings. The banks have previously automated their compliance processes using technology, this is projected to happen more frequently in 2023. Some major trends are listed below:

  • 1. Artificial Intelligence, Machine Learning, and Compliance
  • 2. Taxonomies and Knowledge Graphs
  • 3. Embedded Compliance
  • 4. Evolving Rules and Cross-Border Compliance
  • 5. Compliance Automation for Planning Meetings

Let’s get into a detailed analysis:

1. Artificial Intelligence, Machine Learning, and Compliance

Nowadays, data is the new currency. In addition to Big Data, what additional types of regulatory papers are available for use? So, it should come as no surprise that AI and machine learning have made their way into regulatory technology to assist in managing and governing massive amounts of regulatory data.

AI and machine learning assist in converting regulatory knowledge into useful information. Nonetheless, they require direction as they pick up regulatory jargon.

2. Taxonomies and Knowledge Graphs

Machine learning and AI are logically complemented by taxonomies and knowledge graphs. The taxonomy is a system of classification that enables us to characterize the domain of information using a standardised vocabulary. To do this, concepts are connected, and several ways of expressing the same concept are recorded. The knowledge graph, on the other hand, has the responsibility of capturing the obtained data, reducing its complexity, and organising it into knowledge-based data.

But how does this influence compliance automation for your company or as a tool for compliance automation? As previously stated, the knowledge graph follows naturally from artificial intelligence and machine learning. Machine learning will be much more capable if they are combined. With the data schema of a graph, machine learning's power will significantly grow, directly impacting the potential of digital compliance solutions. Knowledge graphs not only offer excellent reliability but the precision of information can also be acquired.

3. Embedded Compliance

There is now a new compliance automation system available. By offering value-added technology, regulatory technology is no longer merely a "nice-to-have" but rather a business accelerator. Mature providers need to join the bandwagon for this move to be widely accepted.

Embedded compliance is what compliance automation entails. It is now possible to combine corporate operations and regulatory technology. Since regulatory technology enables businesses to take advantage of business possibilities, cut costs, and limit risks, more and more businesses are incorporating it into their corporate structures.

4. Evolving Rules and Cross-Border Compliance

Financial institutions must adhere to an increasing number of constantly evolving rules if they want to serve a clientele that is worldwide. The so-called cross-border framework must be actively managed and ensured by them. Companies should conduct a cross-border compliance study to identify the areas where businesses suffer the most.

Memos, phone calls, or emails are still the primary methods 91% of businesses use to obtain legal information. With regard to cross-border compliance, financial institutions have a lot of room for using compliance automation.

5. Compliance Automation for Planning Meetings

Planning and documenting client meetings get more difficult when regulatory complexity rises, making it impossible to meet clients' expectations. Client meeting preparation shouldn't be a hassle in today's digital and always-connected business world. Via compliance automation, you can have access to digital compliance standards that are immediately integrated into the technologies you already use and are based on all applicable legislation. Relationship managers can realise more client encounters with greater assurance if they have concrete solutions to the most pressing regulatory questions about client meetings.

Summing Up

Aurex’s Compliance Management module is a highly customisable module that can be fine-tuned to suit the multiple requirements in multiple jurisdictions.You will get a holistic picture of the compliance implication of the risk and related controls. The Module comes with a high-end customisation option, and you can fashion and shape the Module to be in sync with the law of the land in your place of registration.

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