Regulatory Compliance teams are going ‘digital’.
What does this mean? Why will knowledge management be at the centre of digital compliance?
Digital technologies are essentially software applications that allow firms to increase productivity and enhance user experience by processing data and structuring information in a more intelligent way. More and more applications reach the stage where they can practically make a difference. The future certainly holds more and better. The resulting opportunities are big and the threat is existential. As a result, firms are prepared to fundamentally review all the components of how they deliver services, including regulatory compliance inputs.
The raw data inputs are crucial. What are the raw data inputs for Legal & Compliance? The foundation is and remains regulatory requirements. Going forward, some regulation will be delivered as code, but regulation will inevitably remain open to interpretation. Information is derived from this raw data and the most valuable information in Legal & Compliance will remain the in-house interpretations and knowledge. Which means that, the foreseeable future, the most valuable Compliance officers will remain the ones that can reliable apply regulatory requirements to complex and evolving facts and circumstances. They will be in control.
What will the key to digital success be?
The key to digital success will be to ensure that regulatory expert knowledge can be structured, managed and deployed within a variety of delivery tools. The delivery tools will be controlled by regulatory experts and provide the different components of a comprehensive compliance service.
At its cutting edge, RegTech is now also about using advanced information processing techniques to manage in-house expert regulatory knowledge.
Regtech is currently still mostly about reporting and monitoring tools. More and more regtech is also about applying compliance knowledge to self-service tools, that assist Compliance with the provision of relatively low value but high-frequency advisory tasks (think for example about PA dealing bots). At its cutting edge, regtech is now also about using advanced information processing techniques to manage in-house expert regulatory knowledge. This includes for example knowledge maintenance assistance tools, or search interfaces using Natural Language Processing techniques that allow users to get answers to questions that were not pre-trained.
What can we do?
At Single Rulebook, we position ourselves at the centre of the digital compliance dashboard: we provide knowledge maintenance services and ensure that all the reporting, monitoring and advisory delivery tools are using accurate, up to date and consistent regulatory information and interpretations. We expect that the job satisfaction of our users will increase in tandem with firm-wide productivity, and that risk will be reduced.
- If you would like more information on how we can help, please contact us today.