Managing regulatory changes is not a new issue – it has been a challenge for businesses since there have been regulations. Every firm is aware of adhering to the rules and laws that govern them and its industry. However, the rapid pace of regulatory change has complicated matters, which is why an increased emphasis has been placed on regulatory change management software.
The Difficulty Inherent in Regulatory Reform
Why are corporations required to place such a high premium on regulatory change? There are numerous explanations for this. The most significant one is that these legislative changes have the potential to disrupt numerous corporate processes. It’s not as if regulatory changes are trivial and easily compliable; they can radically alter the organization’s direction and upend plans that have been in place for years.
What is the Remedy?
This is not a novel challenge, which is why there are numerous ways of managing regulatory changes. Each organization operating in a highly regulated business employs individuals dedicated to regulatory reform. These individuals are responsible for anticipating impending regulatory changes. This is not a simple job that demands a diverse set of talents.
The issue is that regulations are not published until they are finished, which leaves little time for organizations to adapt. As a result, businesses want to know which way the wind is blowing to prepare for impending changes. This can be accomplished in a variety of ways. Regulatory change managers closely monitor and evaluate each individual appointed to a regulatory body. This enables them to make educated guesses about the types of decisions the department’s leader will make.
Suppose someone with a track record of restricting businesses is chosen. In that case, firms understand that they will face more regulatory scrutiny and that there may be several regulatory changes that disrupt current company procedures. The same method works in reverse as well. If the individual hired has a history of taking a laissez-faire approach to business, this indicates that regulatory scrutiny will likely be reduced, and regulatory reforms will likely open up new chances for the business.
Another significant indicator is the strategy taken by national and state governments. Different political parties have varying perspectives on business. Given that regulatory bodies are subordinate to these governments, examining the government’s approach provides organizations with insight into the type of regulatory changes they might anticipate.
Using technology to automate the process of change management
Managing regulatory change has gotten easier as a result of technological advancements. Initially, businesses relied on general-purpose software such as Excel and Word to assist with change management, but specialist solutions are now available that streamline the entire process. These software solutions are intended to aid in the management of all aspects of regulatory change.
These solutions educate and inform all stakeholders about regulatory developments. This means that instead of regulators needing to conduct extensive research and read various publications to filter out material relevant to regulatory change, these technologies give them all they need to know. There are numerous options available, each with a unique approach to regulatory insights. Some manually curate a feed of updates through regulatory specialists, while others utilize keywords to catch important news automatically, and yet others take a hybrid method. This saves considerable time and guarantees that the regulatory change management department does not overlook anything critical.
Compliance with Regulations
Regulatory change management system provide insight into impending legislation and required compliance modifications within the firm. This is a relatively new capability found in cutting-edge technologies. When a solution is implemented, a risk map is developed. The process of risk mapping entails associating risks with policies, documentation, and corporate operations.
The advantage of this strategy is that it informs the organization instantly of what needs to be changed. When regulatory changes occur, the solution uses risk maps to determine which business segments may be impacted. This is critical because it enables the company to grasp the scope of the required adjustments quickly. Rather than assessing these modifications manually, the change management team may focus only on assuring compliance with the new criteria.
These are why regulatory change management software solutions have developed into a critical tool in highly regulated industries. Additionally, these tools are reasonably priced, and many of them are offered via easy-to-acquire cloud models.