Last month we touched upon Regulatory Relationship Management (RRM) as a framework used to satisfy regulators and their regulatory requirements. Here, we point to the next steps forward by addressing the challenges and impacts of non-compliance and providing you with thoughts on assessing your current compliance state—finishing off with actionable remedies to avert non-compliance. “The cost of non-compliance is 2.71 times higher than the cost of compliance” — Ponemon Institute and Globalscape “The True Cost of Compliance with Data Protection Regulations”The Top Challenge to Continued ComplianceFor highly regulated financial institutions, having an effective regulatory compliance strategy is a fundamental part of the business process. Organizations that are compliant with regulations have an advantage in terms of winning customer trust. A vigilant organization will reduce the potential negative impact on its brand. On the other hand, companies struggling with compliance are exposed to the risk of fines, business disruption, and reputational risk. The effort to repair a company’s reputation and restore customer confidence can be daunting.A compliant organization optimizes value for its customers and minimizes risks. Nevertheless, keeping up with the sheer amount of constantly evolving regulations has become increasingly challenging. A global survey by Thomson Reuters Regulatory Intelligence backs this up by revealing that the top challenge to continued compliance is regulatory flux. Regulations are constantly being amended and revised to reflect social, cultural, political, and technological changes in the regulatory environment. Compliance requirements across international jurisdictions only add more complexity to the regulatory burden — a burden that does not look to loosen.The Price for Non-ComplianceOrganizations must remain vigilant for gaps in their regulatory programs. While the price tag for compliance measures may seem costly, the potential costs for non-compliance include operational disruption, decreased investor confidence, legal fines and penalties, diminished brand value, and loss of employee morale. Ultimately, according to a study by the Ponemon Institute and Globalscape, the cost of non-compliance is 2.71 times higher than the cost of compliance.Assessing Your PathKey indicators The ability to course-correct depends on people-readiness and process adoption. Asking the following questions will inform your next steps towards regulatory risk mitigation: Are adequate risk assessments in place? How thoroughly are you assessing your compliance risk exposure? Do you have enough skilled staff allocated for compliance? How sufficient is your technology in managing compliance? What is your company’s attitude towards compliance? Who is accountable for non-compliance? Actionable Remedies to Non-ComplianceBuild a Culture of ComplianceActionable Remedies to Non-ComplianceCompanies strengthen their compliance culture by plugging the gaps in their policies and procedures and putting into place reviewing and monitoring mechanisms. They conduct compliance training and communications with a strategic intent of curbing non-compliance. Making personnel policies, screening, and evaluation of employees, vendors, and agents mandatory for vigilance and course corrections is also part of the remedy. Instituting monitoring, auditing, and internal reporting systems, including disciplinary measures for non-compliance is another. Most importantly, setting the right tone at the top is vital to maintaining a healthy compliance culture. To do so, companies create the role of the chief compliance officer, who is empowered with responsibilities of monitoring regulations, managing compliance, and mitigating business risks.Make way for intelligent automationRegulatory technologies provide the capabilities for companies to be up-to-date with the magnitude of regulations as they change. Workflow tools enable the relevant stakeholders to access the impacted regulations so they can take corrective measures. Archiving, retention, and disposition technologies allow companies to preserve information as per compliance requirements and make this information searchable and accessible for future inspections. Encryption prevents leakage of confidential data and alleviates privacy concerns. Cloud storage technologies enable companies to save on hardware and infrastructure costs. End-to-end business process automation significantly improves productivity.Unify the information governance activitiesTie these individual regulatory technologies together, and you can create an automated, unified governance infrastructure. This unified infrastructure will enable you to achieve policy integration and process transparency across your records management life cycle. You can generate risk reports instantly and monitor the compliance health of your organization through comprehensive dashboards.One such product that can create your unified governance infrastructure is Infobelt Omni Archive Manager. Infobelt Omni Archive Manager is an advanced data archiving platform for all data types that enhances information protection and privacy and increases process efficiency. It gives businesses a comprehensive process to allocate, organize, and archive data according to industry regulations.Putting It All TogetherOnce your organization understands the value of compliance and is ready to take action, you may want to find and consult with a regulatory technology partner, such as Meji Partners or Infobelt, and utilize their services. Infobelt is the only company that delivers a complete end-to-end books and records management system. Meiji Partners provides an independent advisory voice that helps uncover hidden risks and challenges presented by regulatory obligations.Once your organization understands the value of compliance and is ready to take action, you may want to find and consulaBy proactively reducing the likelihood of a significant non-compliance event, an automated information governance strategy sets your organization apart in the marketplace. It gives you a competitive advantage while also protecting your brand.t with a regulatory technology partner, such as Meji Partners or Infobelt, and utilize their services. Infobelt is the only company that delivers a complete end-to-end books and records management system. Meiji Partners provides an independent advisory voice that helps uncover hidden risks and challenges presented by regulatory obligations.

Meeting compliance goals through Regulatory Relationship Management (RRM) Framework RRM stands for Regulatory Relationship Management. To understand RRM, let’s start with something more familiar to you, such as Customer Relationship Management (CRM). Probably when you think CRM, Salesforce comes to mind. CRMs such as Salesforce align your business model to your customer relationships. The goal of CRM is to drive your sales to funnel and retain customers. Similarly, RRM aligns your business and compliance model with your regulatory relationships. The purpose of RRM is to satisfy regulators (precisely their regulatory requirements).In CRM, you are trying to understand the customer and satisfy their needs. In RRM, you are trying to understand the regulator and meet their needs.What is RRM?RRM stands for Regulatory Relationship Management. To understand RRM, let’s start with something more familiar to you, such as Customer Relationship Management (CRM). Probably when you think CRM, Salesforce comes to mind.CRMs such as Salesforce align your business model to your customer relationships. The goal of CRM is to drive your sales to funnel and retain customers. Similarly, RRM aligns your business and compliance model with your regulatory relationships. The purpose of RRM is to satisfy regulators (precisely their regulatory requirements).In CRM, you are trying to understand the customer and satisfy their needs. In RRM, you are trying to understand the regulator and meet their needs. “Taking a proactive approach to regulatory compliance saves reputation, money and hundreds of man-years” — RegTech industry expert What are some of the key features to look for in an RRM solution?Modeling your operational and compliance frameworkMost importantly, your RRM should let you create a model that addresses your organization’s operational and compliance demands. Your RRM should link regulations to required regulatory records, then map your books and records to your compliant archives. These are just a few examples, but the RRM solution should be flexible enough for you to create an accurate representation of your real-world operational and compliance characteristics.Customizable workflows with built-in attestation modelsEqually as important, your RRM solution should have customizable workflows that ensure that each line of business within your organization completes specific regulatory tasks to remain compliant. The world’s top RegTech companies suggest that you customize these workflows to each line of business and be scalable as your organization grows. Keeping these workflows as simple as possible is a significant factor in ensuring adoption throughout your company. Actionable dashboards with real-time compliance health-scoresA good RRM solution should have actionable dashboards that give business leaders a compliance health score in real-time. Workflows with built-in attestation models will feed the dashboard, highlighting any areas within the organization that require remediation. “Taking a proactive approach to regulatory compliance saves reputation, money and hundreds of man years,” suggests a RegTech industry expert. “This approach will allow business leaders in the Financial Services Industry to get ahead of issues long before they have become a serious problem.”Notifications regarding regulatory changes and business impactWhat would a Regulatory Relationship Management system be without regulations? A significant component of any RRM is that it is updated with the newest rules and regulations constantly. The design of your RRM must notify relevant stakeholders about which regulatory requirements have changed, provide the impact that the regulatory change has on the organization, and have the necessary workflows to manage the regulatory change properly. “Without a constantly updated and direct feed, an RRM is rendered useless,” suggests a RegTech Operations LeaderNotifications regarding regulatory changes and business impactAnalysts suggest that the regulatory compliance technology industry will see a growth rate of over 52% through 2025. RegTech companies provide financial services firms, such as investment banks, commercial banks, private equity groups, and insurance companies a proactive and strategic approach to keeping up with the constantly changing regulatory landscape.Analysts suggest that the regulatory compliance technology industry will see a growth rate of over 52% through 2025. RegTech companies provide financial services firms, such as investment banks, commercial banks, private equity groups, and insurance companies a proactive and strategic approach to keeping up with the constantly changing regulatory landscape.Learn more about RRM RegTech solutions. Email us at info@infobelt.com.

For the financial services industry and global economy, COVID created unprecedented disruptions that ultimately required financial businesses to change pace. Although global markets and businesses are now on the path to recovery, these firms are still challenged with heightened risk and uncertainty. As we enter the second half of 2021, our team has identified areas that will require close monitoring from leadership and compliance teams.Ransomware AttacksRansomware attacks often target a company’s sensitive internal data, making unprotected, unbacked up data a key vulnerability within a firm. Without a safe, secure, and separate store of a company’s vital data, its operations can be brought to a complete standstill by a ransomware attack. Downtime caused by an attack can stretch to over a month as companies work to clean systems and restore data.While traditional ransomware protection comes in the form of anti-virus software, Infobelt Omni Archive Manager works differently. Omni Archive Manager is a secure data archiving platform, providing an additional layer of data protection from attacks by creating an immutable copy of your company’s data separate from your operational network, and therefore, safe from an attack. Omni Archive  Manager works by archiving all of your data hourly, ensuring a near real-time store of your company’s data that can be recalled and restored in the event of an attack.Scrutiny on market transactions, specifically related to COVID transactions and stimulus paymentsIn 2020, FINRA reviewed 79.7 billion transactions every day. Because of the large amount of aid that was distributed to businesses and individuals during this time period, regulators will be specifically reviewing for anti-money laundering and fund misuse. Proper documentation and policies will be integral to making sure your firm is not scrutinized during this time.Shift to digital businessThere is no doubt the pandemic has changed business and workplace activity. Operations evolved by implementing digital controls and processes, and this theme continues even as many businesses go back into the office. Regulators will require greater oversight on these digital transactions, specifically on technical innovation and operational changes.Preparedness is the key to tackling the compliance requirements posed by emerging regulatory changes. Regulators will continue to be stringent on requirements, and making sure your team is informed and prepared in case of scrutiny is vital to your firm’s success with regulators. Maintaining a positive relationship with a regulator is vital to your firm’s success, especially during this time. Our team has previously put together a blog on bolstering your relationship with regulators. To read, click here.

Throughout Infobelt’s interactions with both regulators and regulated industries, we have learned how to make the experience and the interactions smoother, more efficient, and cost effective. These are our top 3 recommendations.