A recent study from Cordium and Aite Group suggested a “lack of manpower and a steady pipeline of compliance deadlines” helped explain why only 4% of respondents felt they had an entirely strategic approach to regulatory reform, while 46% said their approach was either entirely or mostly tactical.
In today’s regulatory environment financial organizations simply cannot view compliance as the sole responsibility of one person, like the compliance officer. It often requires company-wide support – including front office, management, and technology teams – so that any new requirement can be implemented in the most effective way possible. Within compliance departments, regulatory change management is often broken down into tasks related to a particular aspect of the business or operational topic (AML, Lending, Privacy, etc.). For example, depending on the size of the organization, typically at least one person is responsible for aggregating and compiling a comprehensive list of regulatory changes on a daily basis, then another person is responsible for coordinating the analysis of such documents, another group tasked with reading and analyzing those documents, then yet another person is tasked with conducting an internal gap analysis, and lastly, another team is responsible for the implementation strategy. If you then consider the volume of regulatory changes and the collaborative requirement for processing new regulatory changes internally, you can imagine the overwhelming, highly time sensitive and continuous process of regulatory change management within a financial organization’s compliance team.