3 core benefits of systemising compliance (with examples)
Regulatory bodies are mandating compliance at individual and cultural levels, and firms need to use this as a framework for systemisation. Traditional systems for managing individual compliance data are incomplete. HR solutions and GRC solutions contain countless gaps around the individual which creates risks for the business.
To truly gain transparency over individual compliance, organisations need to break down these silos. Systemising compliance gives organisations a holistic picture of the cultural and conduct adherence of the firm and its people.
This doesn’t just provide peace of mind. It gives senior managers understanding over where risks are appearing and why, ensures all activity is recorded and acted upon, and encourages culture shift in your organisation. Ultimately, focusing on the individual strengthens your organisational governance in the eyes of the regulator.
In this blog, we explore three of the most fundamental benefits of systemising individual compliance, with practical examples.
1. Frameworks ensure completeness for your firm type
Translating regulatory needs into a digital system ensures every required step is followed. At Trailight, we fully understand regulation in order to systemise its requirements end to end and then apply your organisation’s framework to suit your processes.
A certifications example:
Systemisation means frameworks are set up for mandatory recurring assessments or reviews. They can be customised to ensure any specific requirement or data point is included in that process. This mitigates risks of non-compliance by missing deadlines – plus it makes the delivery of these processes much smoother.
A risk management example:
Sifting through regulatory data manually to see what’s urgent is impossible to do effectively. Systemised frameworks can be configured with different risk thresholds, depending on your policies, which allows senior staff to immediately see what’s exceptional.
Instead of viewing every performance indicator, you can filter for risk indicators which enables faster and more successful risk management. With a framework in place, this also means you can demonstrate that an action has been taken to remedy risk indicators.
2. Timestamping data builds a comprehensive regulatory footprint
Systemisation ensures all data is not only captured, but is timestamped. This means that when the regulator comes knocking, you’ve got a compete regulatory footprint from past to present to evidence your compliance. Trailight in particular captures more data around the individual than any other solution, including elements from HR, GRC and everything needed to comply with regional individual accountability regimes.
A reasonable steps and conduct example:
Organisations need to prove they’re taking reasonable steps as outlined by their regime. Equally, activities like attestations and Q&As are needed to monitor conduct. A system like Trailight not only gives you the tools to produce supporting documentation at the click of a button, but by using the in-built proof systems, you are inherently creating an evidence trail that your individuals took the right steps with timestamping to mitigate risk.
A training and competence example:
Training and competence regulation, such as the Consumer Duty, require large amounts of evidence around the individual. This often involves data from multiple systems or policies. Trailight draws large quantities of data from multiple locations against the relevant policy frameworks. So, by systemising these data processes upfront, you have already recorded all the relevant evidence of people’s capabilities and compliance when the regulator comes knocking.
Could you benefit from systemisation?
Download the free checklist to understand what elements of systemisation you have in place, where you have gaps, and where you could benefit from new compliance processes.
3. Automation saves time and mitigates risk
Systemisation introduces essential automation of governance. Workflows can be set up in advance and documentation can be produced automatically to both save time and ensure mandatory actions don’t slip through the cracks. Data from across systems, departments and sources is brought together automatically to create a singular picture of activity.
An approvals example:
Approvals required in relation to an automated workflow will be directed to different stakeholders as required, across departments and the entire organisation. This makes it much easier to ensure the correct people have visibility over workflows and that approvals are gained in a timely manner, and to completion, before the next steps are taken.
These workflows are also supported by the system automatically producing a singular MRM with timestamps, saving time and building resilience.
A behaviours and status example:
Changes in status need to be identified and dealt with in a timely manner, but it’s easy for these to fall through the cracks. With a systemised solution, dependencies are automated so there are no gaps in your governance framework. For example, a change in status will enact a change in process immediately and record proof that the required action has been taken. This not only saves time, but it strips away the complexity of manually monitoring and then adjusting embedded processes based on every individual’s status.
These automated workflows can easily be configured to your firm and the policies that regulators mandate.
IRC – a holistic picture of the individual
Trailight’s Individual Regulatory Compliance function brings all the benefits of systemisation together. It enables you to automate all elements of people risk management, individual accountability and all other regulatory compliance data that’s needed around the individual.
In short, systemisation means not having to manually pull together the information you need to meet compliance requirements. It saves you money and time and eliminates worry.
By ingesting data from the third-party systems you’re already using, systemising our IRC capability paints a holistic picture of your individuals from a cultural, conduct, and compliance perspective. It establishes completeness for your governance from day one, while also delivering a dynamic view of updated data to the people that need it.