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Making Compliance Management Easier for Bankers

Adam Smith
Adam Smith
5 Min Read

Bankers have a variety of methods of expressing their views on compliance management, but the word ‘simple’ is not one of them. Anyone who has worked in a bank or other financial organization understands how difficult and stressful compliance risk management can be.

While simplifying compliance management makes life easier for compliance and risk managers, convenience is not the primary goal.

The true reason this is critical is that it has the potential to dramatically enhance compliance efficiency. Simplifying compliance makes it easier to identify, track, and address concerns and difficulties.  

Why Does Compliance Become Complicated?  

It is important to understand the underlying reason for the dysfunction that frequently manifests in compliance management.

The primary issues arise as a result of:  

  • Strict paperwork requirements for compliance 
  • Document dispersion throughout the organization 
  • Inadequate capability for tracking issues 
  • Audits that need significant resources 

Requirements for extensive compliance documentation  

Compliance is mostly contingent upon paperwork. There are reference documents that include process recommendations. 

If there is an issue, these papers are send by email for evaluation and validation. Each firm generates numerous such papers. They are frequently shared by email, resulting in duplicate copies of the documents disseminated across the organization.  

Documents dispersion across the company 

The dispersion of documents over several email inboxes inside a company causes a slew of compliance management issues.

Issue is that numerous rules and regulations are governing how sensitive financial data may be transmitted and who may access it, and compliance with these laws and regulations becomes more difficult when management lacks control over papers previously send through email.  

 Inadequate capability for tracking issues  

 Many small to medium-sized enterprises and financial sector organizations lack specific compliance management tools. If a compliance concern arises, it is send through email.

Not only does this result in many email threads, but it also prevents management from seeing compliance management-related concerns.

The compliance manager is responsible for manually tracking problems and ensuring that the necessary remedial measures are taken. The compliance manager’s findings must then be send to the board of directors.  

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 Audits that consume a lot of resources  

All three of the preceding points are exacerbate when audits occur. Auditors are then required to review various versions of documents, follow several email lines, & produce a record of remedial actions performed.

Due to the absence of electronic audit trails, audits are one of the most resource-intensive components of compliance risk management.

This does not just waste the auditors’ time; it also requires the attention of those who worked on the audit processes.  Since they must collect necessary information and submit it to the auditors.  

Streamlined Compliance Management   

When compliance risk management is automated via the use of a compliance risk management software, all these issues are resolved.

Documentation requirements are irrelevant since the platform will guarantee that compliance is maintain and that all need papers are available.

Documents do not need to be transmit over email – the platform’s document management system enables users to share documents kept in a single place.

This also resolves the issue of version control, and any changes made on the central server is mirrored in all instances of the page.  

Auditing becomes much easier as well when a compliance management system is established. These systems maintain audit traces for each activity taken. Auditors may obtain the necessary information with only a few clicks. Additionally, these technologies are with audit management systems to maximize efficiency.  

All these improvements add up to create a compliance management framework that is naturally efficient and accurate. Bankers can automate menial compliance tasks and focus on what is truly important for the future of the organization.

Many businesses are now utilizing compliance management systems that ensure better compliance levels and also decrease  costs for organizations.  

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