Financial Services Blog

In the previous blog in this series, we looked at how Compliance functions are investing in RegTech and other innovations to deliver the sustainable outcomes needed in an ever-more-complex threat landscape.  A mix of investment approaches including build, buy and subscribe can help get Compliance to where it should be as both an advisory and a control function within a more integrated second line of defense.   

Compliance functions are also starting to reconcile with the idea that, in a highly volatile risk ecosystem, phasing development across a multi-year roadmap may no longer be an option. Instead, Compliance should adopt a strategy of continuous improvement in its ability to withstand the industry shocks that continue to test whether the function has the right foundational capabilities.   

To build and maintain this kind of resilience, industry leaders should configure their operating model, technology and talent strategies and apply a combination of investment approaches that works best for them.  The time between major change events such as open banking, cryptocurrency and quantum computing continues to decrease, demanding a new mindset to modernize the Compliance function.  Annual plans, driven by once-a-year risk assessments, are in our view no longer sufficient. As we see it, Compliance should be working to develop a new, forward-thinking and stress-tested approach, while continually monitoring the threat landscape and evaluating and improving its ability to remain resilient in an environment that is subject to continued disruption.   

As we have discussed throughout this blog series, the rules of the road have changed, and leading Compliance organizations are embracing a new, innovation-driven mindset.  The 2018 Compliance Risk Study demonstrates that industry players able to retain focus amid increasing volatility and complexity can identify needed changes in their operating model, their technology and their talent.  Organizations able to implement these challenges while remaining sensitive to shifts in the risk ecosystem can create a Compliance function that is fit for the future of financial services.   

For more information, please download the 2018 Compliance Risk Study

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