Why should companies use technology in compliance processes?
16 OCT 2019
We are in the digital age and emerging technologies help us optimize processes and reduce costs at various stages of a project. With compliance is no different!
Information is like our bargaining chip, in some cases we have free access to it, in other situations we need to invest resources to get it.
Now, you should be asking yourself: “Is this article about reduce costs or investments?”
It may seem contradictory, but we can reduce costs by making investments and cutting unnecessary expenses.
Answering the main question on this topic, technology can help compliance in the following fronts:
- Internal and external audits
- Development of internal controls
- The information security policies
According to the KPMG report, only 10% of companies have high performance in data analysis and compliance technology.
Another important fact is that 18% of companies do not have any infrastructure for data extraction, testing and analysis.
How the technology helps compliance?
Your company should start with audits, the best way to optimize this process is to use tools that enable:
- Provide information about private individual or legal entity
- automate the collection and structure the data
- Reduce search time by going to multiple databases at once
- Bring contextually relevant information
What can the organization define with those information?
- The progress of investigations
- Any business relationship that presents a risk
- A mitigation plan
Thinking about the next step, how can the companies optimize the development of internal controls and reduce costs?
Here are some tips to keep in mind when the company is choosing a digital platform:
- Providing process monitoring on individuals, this enables HR to have more intelligence when hiring
- Conducting consultations about individuals. That way, it is possible to identify and predict fraud.
What is measurable and can influence decision making:
- Effectiveness of the ethics plan
- Impact on organizational culture
It is important to observe and report how all of the compliance processes are impacting the goal of reducing costs.
Imagine having to do manual surveys or queries for information about PF and PJ entities. That way you would take much longer and the work will be harder. Therefore, the manager would need one person for each project.
You can notice that technology acts for the purpose of cost reduction, because a platform has the ability to automate multiple steps, allowing analysts and managers to make quick analyzes and accurate decisions.