The number of individual regulatory changes that financial institutions and banks must track on a global scale has tripled since 2011. There are millions of proposed rules and enforcement actions across multiple jurisdictions that organizations must follow. Regulatory change management can be described in simplest terms as “managing regulatory, policy, and or procedures applicable to your organization for your industry.” Regulatory compliance can be a burdensome and costly task for financial institutions.
It is important that organizations have the appropriate processes in place to identify changes to existing regulations as well as new regulations that impact the ability of the organization to achieve objectives. It is equally important that organizations are informed of any potential consequences or fines should they not meet the regulation.
Once a regulatory change has been made, it is essential for organizations to assess how they will implement the respective changes to their current policies, processes, and training sessions. As changes are implemented, organizations should begin tracking compliance with the updated regulation going forward.