April 20188 IN MY V EWThe financial industry today is under immense pressure to evolve which has induced the acceptance of technologies. Four key things have transformed the industry, and I simply call them the `ABCD' where A is Artificial Intelligence (AI), B is Blockchain, C is Cloud computing, D is Data Analytics. The challenge lies in accepting the new technologies to enhance the compliance function and ensure the functions sustainability in the long run. With such technological advancement, it affects the role of compliance for which we are required to enrich our skillset to meet the expanded job scope and ensure the compliance teams are kept abreast and equipped with relevant Information Technology and business protection knowledge. Failure to meet rules and guidelines set by compliance standards could mean fines, penalties and loss of trust.We are exploring tools to simplify our processes, like facial recognition, robotic process automation, optical character reading, Chatbot, etc. These have helped us to simplify the customer onboarding processes by reducing a lot of unnecessary burden and laborious human works. We continuously learn and think from a customer experience perspective to make our interaction with customers "short and sweet" with ensuring compliance at all times.When it comes to AI, more sophisticated tools are used to control, assist and innovate to ensure compliance. Embedding AI technologies in day-to-day functions can raise reflex to certain suspicious financial crime transactions, helping us to draw better conclusions by reporting it to the financial institutions. In the near future, Robo-advisors are anticipated to be a cynosure in the world of AI.Blockchain is considered one of the hottest topics in financial services industry due to its potential to change how business works and making business processes more effective, efficient, transparent, secure, timely, lower cost and error free. With the use of blockchain, smart contracts is getting more attention on its application, whereby it is capable of helping businesses to execute, validate, and enforce the convention or performance of an agreement.While cloud computing is getting more commonly adopted by businesses, some regulators could be skeptical about the robustness of this technology to safeguard the interest of the general public, particularly when customer's personal data is involved. Hence, businesses need to understand the various types of cloud and its applications in the business as well as its risk appetite. Compliance should be well aware of applicable data privacy laws as well as those with extra territorial application to industry-specific regulations such as HIPAA for health data and PCI DSS for payment cards. It is equally important to assess the effectiveness and reliability of the security deployed for these cloud computing and ensures that a proper service SECURITY AND COMPLIANCE MANAGEMENT--TICKET TO SUCCESSTerrence LimBY TERRENCE LIM, CHIEF RISK OFFICER, AVIVA
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