During our recent webinar, How to Bring Your Policy Management Process Into the 21st Century, industry experts Freddie Frith, Head of SMB at Clausematch, Adeel Liaqat, Co-founder and Managing Director at NovaVu, Melanie Wright, Director, Strategic Integration, Regulatory Strategy & Delivery, Personal & Commercial Banking at Royal Bank of Canada and Koen Vanderhoydonk, CEO at Blanco Services, sat down with us to discuss how organizations can adapt to new technologies and make compliance an integral part of their firms culture.
In our previous blog post, we covered why current solutions aren’t solving your policy management problems. In this article, we will break down how you can build a compelling business case internally and offer tips to help your organization prove the effectiveness of its compliance programs.
Often the response you’ll get when you want to introduce new technology to improve compliance with an ever-increasing number of regulatory challenges is that the in-house solution is working; why change it?
Adeel Liaqat maintains that everything isn’t fine, as you’ve probably been firefighting for years, and with regulatory challenges and requirements increasing, now is the time to modernize.
Looking at a specific problem and how long it takes to solve with your current solution is a good starting point. For example, how much is the current solution costing in terms of system upgrades, maintenance, migration, data upkeep, and how many people have to be utilized to add more value elsewhere in the organization?
When you address the benefits of a new tech solution, they need to be realistic and effectively backed by data when you put the business case together. Hence, they are persuasive without being far-fetched. Liaqat added that the vendors and consultants you’re working with often have the experience of tackling these same problems for other clients, so they can provide you with real-world examples and showcase the quantifiable benefits and outcomes you’ll receive after implementation.
Freddie Frith commented that instead of focusing on pure costs in a business case, it is essential to look at the wider benefits of implementing the solution, strategic objectives, and how it will help an organization achieve its goals.
Additionally, a good business case also requires change management. For example, implementing a piece of technology is great but do the people know how to use it, and are they willing to use it? According to Vanderhoydonk, there is a willingness to drive the necessary change when individuals are excited about the possibilities.
Melanie Wright believes that solutions need to solve future problems that we may not yet be aware of, as well as current issues. An airtight business case looks at what you’re facing right now and what is believed to be coming down the line, which we currently don’t have the capability to manage.
Koen Vanderhoydonk believes that proving the effectiveness of a compliance program doesn’t need to be complex. The key is deciding on strong KPIs from the beginning. If you can show that your organization’s processes are improving and you’re remaining compliant, then you have an effective, proven system in place.
Adeel Liaqat added that having the confidence that you are compliant and can prove this to your internal auditors at the click of a button shows that your compliance program is effective. This is possible through technology like Clausematch.
When asked if regulators should be more involved in supporting the adoption of Regularly Technology (RegTech), Liaqat maintained that first compliance challenges need to be addressed internally by breaking down internal silos and working together collaboratively before working with outside agencies. Once this happens, it will be far easier to work with external partners, such as regulators, to support the adoption of RegTech.
To prove the effectiveness of your compliance program, it is necessary to know your previous situation and your current situation; then, using both qualitative and quantitative metrics, you can truly understand what the measurement of effectiveness is.
For more information, watch the full webcast here.