May 201919 CXO NSIGHTSTechnological innovation and behavioral shifts are putting pressure on organizations to improve their operations while doing more with less. Compliance is an area ripe for this type of change, as automation gives rise to hopes of reducing compliance spend while more efficiently responding to shifting regulatory expectations and the changing risk landscape. However, more than half of Chief Information Officers (CIOs) and Chief Compliance Officers (CCOs) are not yet automating compliance activities, according to a recent KPMG survey. While 90 percent of CIOs and CCOs plan to increase automation funding in the coming years, only 1 in 5 have a well-defined strategy to automate compliance in the next two years.While organizations face certain challenges and limitations in automating compliance activities, leveraging a simple but effective step-by-step plan is a great way to enhance the success and impact of a compliance automation effort.Overcoming the top compliance automation challengesThe vast majority of CIOs and CCOs in KPMG's survey cited data integrity (70 percent) and data availability (67 percent) as leading factors that were limiting their ability to automate compliance activities. CIOs and CCOs also identified a range of challenges when implementing a compliance automation strategy. These challenges include:· Dependencies that are not understood in advance or throughout (39 percent)· The lack of attention from leadership and stakeholders (36 percent)· Insufficient metrics for measuring progress (35 percent)· Unavailable resources to support the automation (32 percent)· Limited subject matter expertise of those completing the automation (29 percent)· Unavailable data or data that does not have anticipated integrity (26 percent).While there are significant challenges in any compliance automation effort, considering some key factors up front and incorporating any decisions into a final strategy will prepare your organization to execute the project more efficiently. To do this, companies should follow these five steps:· 1) Identify and Assess Dependencies. An understanding of the dependencies that exist in each step of the automation initiative is essential to creating a budget, implementation timeline, and reasonable expectations for your stakeholders. · 2) Collaborate with Relevant Stakeholders. Stakeholders typically include senior members of compliance, legal, and business or operational employees who own the compliance processes being targeted for potential automation. It is also important to involve other interested parties who can influence the process.· 3) Establish Metrics to Evaluate Progress. Metrics should be designed to clearly reflect where in the automation initiative the organization is, what tasks have been completed, and what tasks remain.· 4) Identify Personnel with the Appropriate Skills, Knowledge, and Availability to Undertake the Automation. Ideal resources will have a contemporary skill set--one that blends a solid understanding of business operations, ENHANCING COMPLIANCE AUTOMATION EFFORTS STEP-BY-STEPAmy MatsuoBY AMY MATSUO, PRINCIPAL, GLOBAL LEADER FOR COMPLIANCE TRANSFORMATION SOLUTIONS AND TODD SEMANCO, PARTNER, BANKING & CONSUMER COMPLIANCE RISK, KPMG (US)
< Page 9 | Page 11 >