4 Important Steps for Managing Regulatory Changes in Financial Institutions

 

In the pre-financial crisis years, it could have been possible to keep up with regulatory updates using traditional manual methods. As regulators continue to adopt new policies in this age of emerging technologies like Fintech, IoT (Internet of Things), and Digital Currencies, traditional models are becoming obsolete.

Effective regulatory change management process demands additional resources from financial organizations to remain relevant in this current modern era, moreover the following strategies offers 5 essential concepts for developing a solid system for handling regulatory change.

Keeping Track of Regulatory Updates

Organizations must keep an eye on various sources of regulatory information from both international and local authorities, including business associations, regional and national media, and specialized data providers. Due to the substantial number of resources to keep track of and the volume of essential information to evaluate, organizations may find this task time-consuming and resource intensive. However, this process can be simplified with the help of regulatory change management software.

Setting a High Standard for Regulatory Taxonomy

Having a high standard of regulatory taxonomy is important to incorporate all risk and compliance regulations relevant to the business. Also, regulatory management software enables organizations to arrange, store, and transmit regulatory changes without altering the existing norms and connections of the system.

Evaluation of the Impact on Business

Any change to a rule must be assessed considering its effects on the organization's operations. Following the first applicability assessment, with regulatory change management software, every corporate organization can do a complete impact analysis of an update to see whether risks, safeguards, strategies, processes, training programs, and reports are affected and need to be revised.

Implementing Regulatory Change

The remaining step is to draft action plans containing a list of tasks that must be assigned to the right people. Consistent workflows must be defined with escalation options for the review and approval procedures for when due dates pass.

As a necessity for any regulatory change management software, metrics and dashboards must provide stakeholders with insights into the status of the implemented changes, who is responsible for them, and the overall impact on the business at every step of execution. Companies should also make sure that concerns or discoveries are documented with clear remediation plans for quick and efficient issue resolution and closure.

 

To make these activities more accessible and manageable, businesses may select a robust and comprehensive regulatory change management system that uses a common framework to enable multi-dimensional linkages with other GRC components. A regulatory change management software like Predict360 can help combine scattered, segmented, and manual tasks across company divisions and business units to connect them with the organization's broader business goals and objectives. With the help of Predict360, organizations can monitor and evaluate the all-too-frequent regulatory changes. It will also ensure that these changes are implemented correctly and efficiently.