Data analytics technologies can help organizations be more proactive in compliance efforts and address weaknesses before they escalate to compliance issues, consulting firm KPMG said in a recent study. However, many are not effectively using technology and data analytics to take a proactive approach to compliance and to prepare for and adapt to regulatory change, the firm said.
Many companies continue to struggle to integrate and automate compliance activities across their organizations. Approximately 60 percent of the chief compliance officers (CCO) surveyed for the report said either that their company’s technology infrastructure has not been analyzed to confirm that it aligns with compliance requirements, or they were unsure of such alignment.
KPMG surveyed CCOs from 62 major U.S. organizations, and 60 percent also said they were unsure as to whether their technology infrastructure is proactively adapted to align with regulatory changes.
“Given the broad spectrum of regulatory changes anticipated from the new administration and Congress, as well as differing and changing regulatory requirements across jurisdictions, organizations should continue to focus on investing wisely in areas of their compliance practices and programs that will help them to more effectively and efficiently comply and operate,” said Amy Matsuo, partner and Regulatory Risk Network leader at KPMG.
Despite the quickening pace of regulatory change globally, CCOs report there is room for improvement in their ability to monitor and prepare for such change. Only 27 percent of CCOs strongly agree that their compliance function has a change management process in place to identify and incorporate changes in laws and regulations into their policies and procedures. Nearly one-third said their organizations do not have, or they do not know if they have a regulatory change process that captures changes in applicable laws, rules and regulations.