An increasing demand for technology-based solutions to automate the processes has made compliance Monitoring essential more than ever. Financial services companies are required to have Compliance Officers (CO) responsible for overseeing that the business meets all internal policy and regulatory requirements. They regularly face the challenges in running a comprehensive compliance program which is not only efficient but is also capable of adapting to business practices and regulatory requirements.
Compliance Monitoring mistakes will you make as a Compliance Officer
COs play a pivotal role in managing large and complex environments in a swift manner. With several state-of-the-art compliance automation software and other powerful tools in hand, it becomes imperative for compliance officers to meet the compliance demands and provide error-free services. Due to the increasing responsibility and insurmountable expectations that rest on compliance officers, they are more susceptible to making mistakes. Have you ever wondered what are the common compliance mistakes that compliance officers are prone to make? Which of these compliance monitoring mistakes will you make as a Compliance Officer?
Underestimating the importance of designing a comprehensive compliance monitoring program
A compliance monitoring program should be in sync with the complexity and scale of the business. A good compliance program should be driven by a due assessment of the compliance risks of the organisation’s products & services, channels, business models, operating countries, etc. It should not only use the best compliance automation software to map the highest existing risks but should also direct the resources to where the potential risk is greatest. Sometimes, compliance officers fail to acknowledge the importance of design stage of the compliance monitoring program, thereby undermining the importance of conducting reviews across the spectrum of all the regulated activities of a firm.
Not keeping up with the developing laws and regulations
Compliance officers should familiarize themselves with the current regulatory requirements in order to understand the effects of a particular regulation on the implementation of compliance solutions and other aspects of the business. Therefore, it is a prerequisite for the compliance officers to stay ahead of the developing laws.
Not ruling out non-applicable compliance policies
As a compliance officer, it is not sufficient to spend time on compliance-related activities. The compliance monitoring policies need to be customized to address the risks posed by the respective firm and also updated with the ever-changing business. The compliance procedure and policies need to be constantly updated, ruling out the methods that prove to be antiquated or non-applicable to the current business model.
Trying to run a compliance program with outdated methods and tools
Some compliance officers keep using obsolete methods and tools to conduct compliance programs. This not only hinders the overall business but may also result in flawed outcomes. In certain cases, using outdated tools and methods may also cause grave problems to the Financial Institutions. Therefore, it is extremely important for the compliance officers to use state-of-the-art compliance automation program and latest technology and methods.
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