What is the Importance of Compliance Technology?

Over the years, technology has become a critical part of the compliance ecosystem. AI and machine learning have redefined the approach and made it more efficient.
Through this blog post, you will see the benefits of compliance technology and how to choose the best technology for compliance management.

Technology simplifies data handling and enables the real-time adoption of newer compliance frameworks. In certain ecosystems, policies may need an overhaul quite frequently, sometimes even twice during a year. With adequate technology, keeping up with these changes is not only possible but sometimes a necessity. Findings from a survey showed that the popular brand Reebok was able to register a steep growth through better management of their supply chain and using insights from audit reports. This was only possible because it utilized IT provisions to streamline internal processes. For any modern company, compliance technology is now a must for seamless and compliant functioning.

To better understand the importance of compliance technology, take a look at how it benefits companies.

Improves the efficacy of risk-associated systems

Risk assessment is an indisputable pillar of any compliance program. Effective risk management helps create a defensive compliance shield for the organization. Technology plays a major role in this department as it lends itself to monitoring processes, which include the core risk areas. For instance, real-time identification and remediation of compliance risks are possible with interactive reporting dashboards and a suite of analysis tools.

Evolved compliance technology can also help streamline the formal risk assessment approach by centralizing data, steering analyses models, and enabling prioritization. Some software suites even allow seamless collaboration with the action plan, giving the necessary control to every party involved in the compliance system. 

Considering that most companies have an enterprise-wide and compliance-specific risk-associated perspective, several customizations may be needed as well. The right tools can offer this customizability. This is why it is key to give preference to solutions that add value in the right sectors. Ideally, you should scout for tools that can assist the following risk-associated zones:

• Identified legal and regulatory risks
• Mapped areas of the business prone to risk

Streamlines tracking and reporting mechanisms

From reporting to delivering a case-to-case solution, platform integration with other e-solutions is crucial. This is where an end-to-end technology loop shines brightest. As this integration happens, better management prevails. However, to work as intended, the compliance team responsible for reporting and management should have well-defined duties. This way, compliance technology can validate the data collected through reporting pipelines, communicate efficiently or offer a resolution, and address the vulnerability.

Managerial teams can further optimize the reporting platform by utilizing an external task force. External players that can adhere to reporting standards can be assigned this responsibility, so long as they have the infrastructure to support it.

Additionally, the technology works like a central resource that keeps an eye on all reporting. It is able to identify and discard errors or duplication that would otherwise be a tedious manual task. Such robust tracking and reporting via technology make for a stellar company-wide risk management framework.

Negates communication loopholes by keeping it agile

The compliance mechanism of an organization should constantly work towards establishing a dialogue with its employees. This not just helps create but reinforces ethics and compliance-first culture within the organization. Technologically-driven communication tools are something compliance teams can leverage to efficiently engage with employees.

Through technology, it is possible to create a central repository for messages, training material, reminders, policy links, and contact information. These can come in handy for reporting and escalation purposes, both for employees and any other parties. Moreover, companies can use these platforms to engage and offer the employees a chance to unwind.

From sharing motivational videos, podcasts, to organizing contests and ceremonies, an organization can leverage the power of technology to maintain proactive communication with its employees.

Assures diligent handling of data for security and mobility

Data has emerged as a central focus for compliance, globally. Data protection is no more just about managing or offering security to the traditional data stream of an organization. Now, it includes managing a huge gamut of personal data and sensitive data that arises from varied touchpoints wherein the organization operates. Today, data protection is built on two vital pillars: data privacy and data security.

Data privacy and the laws governing it are devised by keeping real people and their safety in mind. This is why the legislature for privacy is geography-specific. With your organization doing business in multiple locations, keeping tabs on multiple privacy laws manually is cumbersome.

The technology addresses this problem through a proactive and automated approach. With these tools, companies can adhere to regulatory norms surrounding data with ease, whether it has to do with access to this sensitive data or its usage. Besides privacy, compliance technology lends itself to the other arm of data protection – security. Implementing screening and due diligence tools helps mitigate corruption risk at the grass-root level.

These tools use AI-enabled functions to automatically screen customers, suppliers, and third-party vendors. In some cases, it can also create due diligence reports, which can be stored within the central repository. While technology helps in detecting the risk and raising alerts, does not completely rule out human judgment as it can offer value as well.

Enables better enterprise-wide policy management

Policy administration and attestation present a greater need for technology in its management. With technology-backed policy management tools, organizations can automate processes and provide employees with a unified policy outlook. Additionally, these tools automate the audit trail of policy revisions. This allows for enhanced tracking of historic compliance data, which can then be referred to when required.

Policy management technology works toward workflow management as well. It makes fine-tuning or editing policies in real-time a possibility. As such, compliance teams can address gaps, remediate, review, and alter procedures all within the same system, at the same time.

How to choose the best technology for compliance?

When selecting compliance technology, weigh the potential and the risks associated with it. Then handpick software suites that align with the compliance program. Ideally, the company should assign this task to the compliance committee, which should follow these guidelines.

• Track emerging compliance technologies
• Be aware of technologies that integrate with the enterprise as a whole
• Know the company’s needs and look to resolve it through technology
• Consider budgetary constraints and allocate or plan it in a prudent way so as to accommodate technology integrations.

In addition to instituting enterprise-wide solutions, the compliance program for the organization should continue to evaluate the available technologies. When scrutinizing, give importance to technology that allows for an increase in the program’s effectiveness and efficiency. With automation and technology, organizations are likely to take a measured approach to continuous improvement and accountability.

With technology within the compliance space continuing to evolve, now is the right time to shift over to a technology-guided GRC program. One that you can trust is the VComply GRC suite. With it, you empower the compliance teams and work towards achieving a technology-assisted compliance program.

This cloud-based suite is designed to optimize both internal and external controls surrounding risk assessment and policy management. Moreover, it fosters collaboration and streamlines governance efforts to enhance the efficacy of the compliance program as a whole. To know more, contact us online.