Other parts of this series:
- Adapting Compliance to the Ever-Changing Risk Profile
- Technology Outpacing Talent in Compliance’s Response to Need for Change
- Technology Transformation as Strategic Initiative for Compliance
- “Build, Buy or Subscribe,” Innovation Strategies in an Era of Digital Transformation
- Less Roadmap, More Resilience for Compliance Function
In the previous blog, we looked at how respondents to Accenture’s 2018 Compliance Risk Study said they were leading with technology rather than recruitment as a response to the need for change.
Respondents now say that technology transformation is the strategic initiative they are most likely to pursue over the next 12 months, and the one with the most potential impact within the next three years. For example, nearly half (49%) of respondents said they are looking to deploy a new surveillance system.
Older technologies are either reaching the end of their life spans, or they no longer have the breadth of capabilities required by Compliance functions in the future. An infusion of new technologies is needed. Meeting future expectations, should require a transformation strategy that runs today’s Compliance as both an advisory and a control function that does a better job of detecting and anticipating an increasingly complex landscape of risks.
Leading Compliance functions are beginning to rotate their operating model to capture integration opportunities for risk and control processes across the second line of defense. For example, they are enhancing the integration of risk assessment, monitoring and testing and analytics programs across non-financial risk types. As new threats continue to emerge, the need for more cohesive risk management should increase. In establishing more integrated controls across the second line of defense, industry leaders can also generate increased operational capacity to reinforce product, business and advisory support for the firm as it navigates a changing risk profile.
In the next blog in this series, we will look at the growing use of RegTech to accelerate risk management outcomes, as well as to acquire a level of maturity in detective capabilities, matching the sophistication of approaches deployed by bad actors.
For more information, please download the 2018 Compliance Risk Study or view a summary of our key findings in the presentation below.