Compliance Best Practices
By taking the proper steps to implementing a flexible system for regulation, organizations can not only improve processes, but can also stay ahead of the curve as compliance regulations continue to evolve.
A recent Bank Tech report suggested tips for adapting to the constantly changing compliance market, particularly for financial institutions that endure the most strict compliance parameters.
Invest in the right technology. Most executives who have yet to make the complete transition to a digital environment, oftentimes assume that by adopting new compliance technology they will be sacrificing the foundation that helps their business continue to grow and thrive. That couldn’t be further from the truth. In reality, regulatory compliance software platforms will not only help organizations to adhere to the latest compliance standards, but they can also help streamline a business’ internal processes to make the company and its employees more efficient.
For financial institutions, when it comes time to move data to the cloud, the issue of security arises, and rightfully so. Banks and credit unions are the largest institutions reliant on compliance and regulatory standards due to customer data and confidential information. Beyond just protecting their customers, the biggest objective for financial organizations is to document and archive data as well as analyze patterns of behavior. This helps banks and credit unions learn their customers’ spending habits to improve company goals and profit margins year over year. By investing in a system that provides analytical tools, it allows them the opportunity to grow and change by having access to data that can help them improve for future business.
Put compliance at the top of your to-do list. There is something motivating about a New Year that inspires companies to put everything negative that happened in the previous 12 months behind them and move forward with a fresh start. In 2014, if you haven’t already begun reevaluating your compliance plan, make sure it is a top priority this year. Why? Because being up to date on the latest regulatory guidelines further portrays your institution as a compliant establishment that is taking the necessary precautions to expand using the right tactics.
For banks and credit unions, the Dodd Frank Wall Street Reform and Consumer Protection Act was designed to prevent future financial distress by increasing the amount of compliance statues they have to adhere to. The reform basically pits the world’s most powerful oil, gas and mining companies against human-rights groups and advocates to weaken corruption and poverty in resource-rich nations. There are a number of other reforms and laws currently awaiting finalization that pinpoint regulation for other verticals as well.
Be prepared to implement change. If you are following the same guidelines to reach the same goals you were focused on last year, you cannot expect to see any growth or change. By first recognizing the improvements necessary to take your business to the next level, you are already on your way to making a difference. Many organizations have begun integrating their compliance and risk management departments to streamline process and mitigate risks. According to Bank Tech, alignment between compliance, risk management, IT, and line-of-business functions has never been more critical, and new projects to replace or establish reporting and analytic infrastructure require a plan that extends to budget and resource management, training, and governance.
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