Regulation is becoming more complex and non-compliance is a real threat, despite the organisation’s every effort to stay on the right side of the regulator’s fence. CEOs and the wider Boardroom are therefore spending a lot more time on regulatory matters or engaging with regulators.
As Boards spend more time on regulation, they are correspondingly spending less time on growing the business. According to FORBES 2016 Global CEO Outlook (a survey 1,300 CEOs across the globe), 85% of respondents raised concern that regulations are expected to inhibit growth. According to Bain & Company research, regulatory compliance can cost between 15% and 20% of operating expenses. When factoring in management time and other indirect costs, the overall cost of compliance is something that the Boardroom cannot ignore.
Organisations must first stay on top of regulatory change – keeping a watchful eye amidst fears that they might miss something, resulting in an inadvertent compliance breach. Once, identified, they must assess the applicability of the new regulation to their business.
If applicable, they must then follow a complex project to implement and embed the regulatory change. Once implemented, the challenge is ensuring that every level of organisation complies on a regular basis. The organisation must also find innovative ways to ensure they collect relevant information to ensure they can evidence compliance to their Board and the regulator
Technology developments are growing at an ever-increasing rate and it is essential that organisations exploit these new capabilities to keep pace with regulatory and compliance issues. It is no longer sufficient to respond to compliance requirements and regulations simply by allocating more headcount. Organisations need to instead use technologies such as Artificial Intelligence, Biometrics, Blockchain and Robo-Processing to automate their compliance capabilities. Recent studies suggest that effective use of technology could result in as much as 50% cost saving in managing compliance.
The workshop will be run in conjunction with vedanvi Ltd and TeamBlockchain Ltd and will take a closer look at the regulatory challenges that organisations face and then present some technological solutions that could help to make sense of regulatory change, reduce the cost of compliance, provide greater assurance to the Board of compliance in the organisation, and monitor internal as well as customer compliance. The use of technology in compliance, so called “Regtech” is a relatively new field, and we put forward exploratory ideas that we hope to develop further through one-on-one dialogue with C suite executives.
For more details of forth coming workshops or a copy of a more in depth paper about this subject email: firstname.lastname@example.org
Vedanvi is a boutique Fintech advisory business with core roots and expertise in Risk and Compliance. With a focus on the Fintech sector, Vedanvi has teams with experience in working on helping some of the world’s financial services firms manage large scale regulatory change projects.
We at Vedanvi are dedicated to helping launch, grow and evolve a Fintech business with a view to transforming financial services firms.
Team Blockchain has been established to help organisations review the impact that Blockchain and other technologies are likely to have on their day to day activities, by helping them identify ways to reduce costs, improve security and drive profit margins.
The members of Team Blockchain have a wide range of practical business experience and many have worked for leading global consulting partners, sharing a desire to offer independent advice and help solve real business challenges for the organisation they work in.