bankingciooutlook

Key Benefits of Regulatory Change Management Technology

Banking CIO Outlook | Monday, July 25, 2022

Regtech can help businesses innovate while staying compliant. Risk maps are used in modern regulatory change management platforms to connect the dots in the risk framework.

Fremont, CA: Most businesses use regulatory change management technology to improve their current RCM (Regulatory Change Management) practices and processes. Regtech (regulatory technology), on the other hand, goes beyond simply speeding up a few processes. It completely reworks and synchronizes the regulatory change management framework with the risk and compliance management frameworks. This has a number of advantages that assist banks and financial institutions in meeting their corporate objectives.

Management of Cross-Functional Compliance

The formation of organizational silos is a significant issue associated with regulatory changes and noncompliance. Some organizations lack a centralized mechanism for managing compliance and regulatory change. Each department is responsible for following current regulations. As a consequence, there is no mechanism in place to assess organizational compliance. Furthermore, it exposes the organization to increased risks of noncompliance.

Each department within banks and financial institutions is required to comply with all applicable legislation governing their operations. When organizational silos form, regulatory change management becomes ineffective. Each department assesses the impact of regulatory changes and implements measures to ensure compliance. As a consequence, a slew of redundant processes run concurrently in a variety of areas. Departments ensure compliance with their own processes, work, and employees, regardless of the overall compliance of the organization.

Boosting Innovation

Regtech can help banks and financial institutions innovate more quickly. Regulatory changes occur more quickly in our time not because regulatory organizations are more active than they were previously; they occur more quickly because of the rapid speed of automation. Financial institutions are becoming more adept at developing new and innovative products for their customers, and regulatory authorities are responding to regulatory changes.

Regtech can help businesses innovate while staying compliant. Risk maps are used in modern regulatory change management platforms to connect the dots in the risk framework. These maps depict the interactions of the regulatory framework's essential components and controls. Businesses can easily see the impact of changes and the ripple effects on the organization's processes. When developing new product lines and service delivery channels, this real-time visibility allows for more effective risk management.

See Also : Change Management

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