Rapidly evolving regulatory reform and uncertainty continues to sweep through global markets, demanding investment into risk mitigation change, process, technology and people.
Regulatory compliance, data security and risk management are key priorities for financial services institutions, yet this results in significant cost to deploy and manage.
There is significant cost to being compliant.
Reducing risk and exposure for noncompliance, and particularly, penalties for breaches, continues to weigh down on compliance teams and senior management. Regulators and policy makers also introduce new regulatory requirements, which further complicates efforts to implement processes, technology and people to manage this ongoing change.
Risk management is a key driver of course, and failure to meet regulation results in heavy fines, reputational damage and further disruption. Unfortunately, the move to be fully compliant often leads to businesses investing into, and focusing on regulatory management, rather than on running and growing their business.
In some respects, large organisations are fortunate to have compliance teams dedicated to the task, which does of course, mean significant investment in the process whilst smaller firms have to struggle by with what they have, and often hope it’s enough.