Regulatory compliance: the benefits of a horizontal approach
15 October 2015
Banks have always faced regulatory change, but what sets the current environment apart is the unprecedented volume of global regulation. Placing considerable demands on the change capacity of banks, this new wave of regulation has highlighted the need for a fundamental change in attitudes.
In the past, the standard approach to tackling new regulations was to resolve each in isolation. However, this fragmented approach leads to scarcity of information on the overlaps, interdependencies and resource issues, thereby increasing the risk of non-compliance.
This piecemeal approach to regulation was further exacerbated by the historical view of business lines within an organisation as being seen as separate entities.If an efficient, integrated approach to regulatory compliance is to be achieved, both these barriers must be broken down.
Today, organisations must understand the importance of adopting a framework that promotes a single, firm-wide view of existing and projected reforms if they are to categorise, prioritise and implement regulatory initiatives successfully.