Process of tying regulatory requirements to Risk and Compliance taxonomy, aka business obligations, policies, procedures, controls, risks and metrics....
Financial Institutions rely on compliance professionals who painstakingly map the applicable rules to their risk and compliance taxonomy, assess the impact of upcoming laws and regulations, and maintain the mapping. Much of this process is manual, making it inconsistent and time-consuming. Their work involves identification, aggregation, applicability assessment, and analysis.
Conventional technology puts the burden-of discovering and analyzing unstructured text solely on the risk and compliance teams.Throwing more resources at this problem is neither scalable nor sustainable because of the cost, subject matter expertise required, and complexity of the regulatory and business environments as described below:
FinancialInstitutions deal with tens of thousands of pages of rules, operate within overlapping webs of laws, regulations, and industry standards across multiple regulatory and legislative jurisdictions.
An ever-changing regulatory landscape, a regulatory change announced every seven minutes
A dynamic business environment due to new product introductions and business expansion to new locations
A complex multi-dimensional business organization made up of decentralized processes and ownership with centralized governance