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Today businesses don’t talk about gigabytes and megabytes when referring to data. Instead, the business world is adapting to big data quickly– it’s all about zettabytes and petabytes. It is an incredible source of information with massive potential when you use it correctly for full compliance.

You get to benefit from open architecture, access to powerful analytics, predictive analytics, and cloud computing. However, successful companies are quickly adopting the use of data for compliance. It is an excellent way to stay trouble-free, considering that businesses face multiple risks in their day-to-day operations. Below we take a comprehensive look at ten ways compliance officers can leverage data for compliance.

Guarantee Personal Liability

Did you know that seeking accountability from individuals who violate the set regulatory laws is among the best ways of combating corporate misconduct? It is your due diligence to identify wrongdoers and hold them accountable. Doing this ensures you safeguard your bottom line because your company is no longer liable. Equally, you also get to deter future illegal activity by stimulating changes in corporate behavior.

Creating Detailed Job Descriptions

Compliance officers need to update job descriptions, making them as detailed as possible to stay compliant. It should showcase how each team member fits into the organization and their associated responsibilities. Ensure you include regulatory registrations, compensation criteria, and business activities in the job descriptions to help senior managers better control the business.

Establish a Clear Line of Sight

You need to have a clear line of sight to all foreseeable risks in your organization. You must have policies and procedures in place in case anything goes wrong. All derogations and adaptations also need approval from the senior level with a sign-off. However, ensure all manual workarounds are considered with adequate caution because they take automated reviews and checks out of the equation.

Identification and Mitigation of Conflicts of Interest

Proper management of conflicts of interest plays a crucial role in compliance management. Firms that take this approach can practice due diligence and implement relevant standards that match the nature of the conflict. Equally, these standards align with regulatory expectations and are considered good market practices.

Enhance Recordkeeping

Many firms are having problems with recordkeeping due to a lack of resources, thus being unable to meet regulatory expectations. However, good recordkeeping acts as evidence of compliance across many industries. Through the use of data, these firms can make recordkeeping fast, easy, and accurate.

Stay Updated on Technological Innovations

Compliance functions need to become more technologically aware of changing times. Robo-advice, for example, has the potential to change the asset management sector. However, officers need to leverage data to ensure their implementation meets both state and federal regulations. Functions have to stay in the loop concerning technological innovations.

Streamlining Outsourcing

Although outsourcing can be moved to a third-party company, managerial skills need to be retained. Therefore, companies need to approach outsourcing with caution to stay compliant. Through the use of data, companies can ensure the regulatory responsibilities remain within their organization while outsourcing other activities.

Strengthen Suitability

Contrary to what most people think, suitability applies to numerous firms apart from the retail industry. Wholesale firms, for example, haven’t been clear about their sales to other firms. All companies need to ensure their monitoring, governance, and assessment arrangements meet their regulatory responsibilities.

Optimize Product Governance

Product governance is a topic filled with changing expectations across all industries. Currently, policymakers are aggressively looking for ways to prevent incorrect selling due to the poor design of the product. Compliance functions need to be part of the product design process to ensure the company stays compliant. It will also help if the department becomes part of the sign-off procedure.

Detect Anti-Money Laundering

It is becoming quite common to hear about counter-terrorism financing on the news. Companies need to find a way of safeguarding themselves from this looming risk at all costs. It is imperative to know your customer (KYC) according to the bank’s anti-money laundering policy. Financial services need to make an extra effort to verify customer identity, suitability, and risks involved. How do you properly know your customer or KYC? The answer lies in leveraging data to detect any money laundering or terrorism financing.

Let Us Help You Stay Compliant

Are you constantly looking for innovative ways to stay compliant? At Enformion, we offer custom-tailored solutions to help you stay apprised of new and emerging regulations in real-time. Sign up for the free trial today to get high-quality compliance tools from Enformion.