‘’Real-time’’ would be the last word most people would use to describe how regulatory changes are often managed. There is a cycle whenever there is a regulatory change; the change is first announced, the bank then analyses the change, then assesses its impact on the current processes of the bank, then changes are suggested to ensure compliance with the new regulations, and then the changes can be implemented. This cycle can take a lot of time to run depending on both the extent of the regulatory changes and the different business units impacted by the changes.

Modern regulatory change management (RCM) solutions streamline this process and enable financial organizations to assess, manage, and monitor the changes in real-time. There are four important pieces which come together to deliver this real-time functionality:

  • Regulatory Content Feeds
  • Impact Assessments
  • Activity Management
  • Automated Reporting
Banks can only achieve real time regulatory change management if they have real-time information and reporting about regulatory changes and their management. Click To Tweet

Regulatory Content Feeds

Modern RCM solutions contain a real-time feed of regulations, regulatory updates, and important regulatory news. Instead of having to look for important regulatory information, banks and financial instirurions receive access to the latest information and data from a direct source. When a change is pushed out by a regulatory agency, the updates are automatically received by the bank and assigned personnel are notified about the new updates. This ensures that banks have access to regulatory information as promptly as possible.

Impact Assessments

Banks have multiple business units dealing in different banking products and services for multiple types of clients. This makes assessing the impact of regulatory changes a challenging task. The bank must first understand which business units will be affected and which regulatory changes will affect each unit. Modern RCM solutions can automate the whole process.

Each unit can define within the RCM solution which regulations affect different banking processes. Thus, when regulatory updates are released, the system can immediately detect the business processes that will be affected by the change. It quickly determines what may be impacted by changes, including policies, training, risks, controls, assessment checklists, compliance monitoring and testing activities, and audits

Instead of having to assess the impact, banks can move directly towards discussing the changes that will be necessary to comply with the new regulatory framework. Not only does this save a lot of time, but it also enables proactive regulatory change management, as banks can now move quickly to implement changes before the new regulations take effect.

Activity Management

Modern RCM solution help create and manage the implementation/project plan and all associated tasks and activities, including coordinating activities across the entire organization, business units and product lines. The bank can create the change plan right within the RCM platform, where it can assign different tasks related to different regulations to teams. Those teams then provide updates about progress under the same platform. This provides the bank with an enterprise-wide view of different regulatory change management activities going on throughout the bank.

The executive members of the bank have real-time visibility into this progress. They can quickly detect any tasks that are getting delayed and intervene as required. Instead of waiting for a report at the end of the project and getting periodic updates over email, managers can now go from an enterprise-wide view and zoom into individual tasks for more information.

Automated Reporting

Banks can only achieve real time regulatory change management if they have real-time information and reporting about regulatory changes and their management. Banks can no longer afford to wait for a monthly or a quarterly report – they want to be more agile so they can respond and adapt to changes at a faster pace. Modern RCM solutions automate board and committee level reporting to update leadership of regulatory insight to inform resource allocation and decision making.

The executive level members of the bank get access to executive dashboards which show them real-time metrics related to regulatory changes and much more. When an RCM solution is integrated with risk and compliance solutions, these dashboards can show a real-time view of not just the regulatory changes and assorted activities, but the risk levels affected by the regulatory changes as well as the compliance processes affected by the regulatory changes. The executive level members of the bank can gain insights, detect important trends, and get business intelligence through the information on these dashboards.

Banks can achieve better compliance, lower risk levels, and adapt to regulatory changes faster through RCM technology. Interested in seeing how such a solution will work in your organization? Get in touch with our risk and compliance experts for a demonstration.