Whether you’re operating in the financial, insurance, or banking industries, compliance with certain regulations is a big part of running your business successfully. The success of any small business in these spheres hinges on remaining compliant, understanding the consequences of lack of compliance, and being able to adapt to change. Regulations like PCI, MiFID II, GDPR, and PSD2 are only the ground floor of a very complex regulatory environment. Staying ahead of changes—and adapting to them—is critical to ensuring you can operate efficiently. In this article, we’ll provide a brief guide to managing regulatory change in your small business.
The Importance of Regulatory Changes
Every industry, regardless of what product or service you offer, is subject to enforcing certain regulations. Whether it’s payment card industry standards, GDPR, specialized banking regulations, established laws and acts, or other types of compliance, it is viable to stay abreast of any regulatory changes. On top of all that, the financial sector is always evolving with new regulations. Current regulations are constantly revamped and most businesses need to stay ahead of any changes. Non-compliance can lead to massive fines, jail time, and going out of business, among myriad other issues. Those are some pretty steep penalties for not remaining in compliance with regulations. So how does a business keep up to date with its regulatory changes? It comes down to communication, monitoring, auditing, enforcing compliance, and updating things promptly when changes occur. Understanding the regulations in your industry requirements and finding ways to keep compliance are the most vital parts forward for your organization in the long term.
Monitoring and Enforcing
Part of adapting to changes and enforcing compliance is to monitor your regulations for any issues, analyze your database, and evaluate your enforcement procedures. Sometimes it’s best to think of monitoring for regulatory changes as a sort of intelligence gathering. Instead of relying on internet searches, public records, newsletters, and other industry publications, you can use powerful software to find information for you. Regulatory professionals can have an easier time gathering information and monitoring for changes with the help of a little bit of software. It works the same way for enforcement. Enforcing regulations when they change is critical. Change management is systematic and very meticulous, so having some additional help to recommend enforcement actions, understand the risks of not being compliant, and find out what happens if compliance violations occur is beneficial for any organization.
Another key to managing regulatory changes effectively is regular auditing and reporting. While the word “audit” can certainly send chills down the spines of the average office worker, it’s an essential process that can help you more effectively manage your organization. Real-time, certified audit reports can be a godsend for any business that wants to stay ahead of regulatory changes. comprehensive audit trails and tracking give managers detailed information on how each change impacts the business, its processes, and its data. The result is a means to quickly identify issues and take corrective action before they grow into much more significant problems down the line. Auditing can be a great way to boost efficiency, fewer risks, and improve your company overall.
Using Machine Learning
In recent years, machine learning and AI have become all the rage. These distinct pieces of technology have made working, monitoring, and auditing much easier across a variety of industries. Machine learning and AI can be used in regulatory change management to help automate the process of identifying, tracking, and managing changes to regulations. This ultimately reduces the burden on organizations and improves compliance with regulations. With the help of machine learning to adapt and recognize changes, it’s easier to stay up-to-date with regulatory changes across a constantly evolving industry.
Using Change Management Software
Managing changes in regulations shouldn’t be as complex or challenging. Instead of using spreadsheets and older tracking methods, it’s best to automate, leverage AI, and use a more robust method for managing changes. Machine learning regulatory change management software offer a comprehensive solution to all your needs. And it doesn’t just stop at artificial intelligence and machine learning power in the system. There are real live Human experts behind most of these types of software to help clients navigate and manage the various utilities included. On top of that, you can get all of the things that you need to remain in compliance—including powerful monitoring, auditing, enforcement, and intelligence gathering tools—all in a single hub. Furthermore, these types of services offer customization options that enable customers to do anything they need to remain in compliance. At the end of the day, utilizing certain types of software in your day-to-day operations will lead to full compliance, successful administration, and staying out of legal trouble for falling out of compliance with any regulatory changes that might happen within your industry.