Compliance 2017: The Year of Regulatory Automation

Transcription

1 Compliance 2017: The Year of Regulatory Automation

2 Michael Lamberth Managing Director KPMG LLP Michael Blackshear CCO North America Bridget Phillips Managing VP Hoan Wagner Managing Director Chubb Insurance Capital One KPMG LLP

3 Compliance Challenges Impacted by Technology Recent surveys conducted by KPMG speak to the specific compliance issues at the top of leaderships radar. 55% Ensuring Accountability Surveillance, and Controls 32% 50% 50% Compliance Sustainability Technology Compliance Challenges Cyber Security and Privacy Compliance 31% 19% 39% Governance and Culture Regulatory Change 16%

4 Leveraging Regulatory Automation Could Be the Answer Second to economic, many CEOs believe technology will be one of the biggest factors contributing to company growth. 85% of CEOs recognize the importance of business processes and artificial intelligence integration Harmonize Coordination Reduce Cost Strategic Advantage

5 Technology Drives Automation and Compliance The industry s approach to automation amplifies the need for end-to-end tools and platforms capable of automating and integrating operations with compliance requirements. Regulatory Technology (RegTech) solutions allow financial institutions to deliver enterprise-wide enhanced compliance. Data Quality

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7 Polling Question Are you using a technology solution to conduct risk assessments? 1. No, not at all 2. No, but we re considering it 3. Yes, for some elements 4. Yes, for most/all elements

8 An Industry Perspective on Current Challenges Area of heightened attention Qualitative and quantitative mechanics misalignment Efficiently surface and apply risk identifiers Multiple third party vendors Emerging Benefits Dynamic and robust process Data driven decision Allocation of resources analytics KPIs, KRIs to scope into risk assessments!

9 Polling Question Are you using a technology solution to conduct monitoring and/or testing? 1. No, not at all 2. No, but we re considering it 3. Yes, for some elements 4. Yes, for most/all elements

10 An Industry Perspective on and Current Challenges Cross enterprises testing activities Centralized vs decentralized Policy alignment of test scripts and procedures Third party oversight Emerging Benefits Efficient and cost effective Defined KPI, KRIs and risk thresholds Integrate business processes Impact of third party volume scope and frequency!

11 Polling Question Are you using a technology solution to conduct reporting? 1. No, not at all 2. No, but we re considering it 3. Yes, for some elements 4. Yes, for most/all elements

12 An Industry Perspective on Current Challenges Manual reporting may be costly and biased Manual reports are subject to errors and inconsistencies Time consuming reporting with limited resources Emerging Benefits Effective and cost efficient Reports that provide easy access to data Increased transparency and timely submission!

13 Polling Question What is your most significant obstacle to implementing regulatory automation? 1. Lack of understanding of the benefits 2. Cost and/or resources 3. Lack of prioritization 4. Lack of management support

14 An Industry Perspective on Current Challenges Insufficient data quality Unstructured and inconsistent processes for large volume data Data accessibility Cybersecurity threats Emerging Benefits Enablement of data aggregation and controls Streamlines enterprise risk management Automate recording and tracking!

15 Time for Q&A

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