Get Future Ready with AI for Effective Regulatory Obligation Management

Introduction

Obligation management is the process of identifying and tracking regulatory obligations extracted from documents and records relevant to compliance. It is a critical part of the regulatory compliance value chain for those organizations subject to regulations and monitoring regulatory updates. For financial institutions operating in a world of high-speed, ever-changing markets, fulfilling thousands of regulatory obligations is imperative to both ensure compliance and avoid reputational damage.

Typically, extracting compliance obligations from applicable sources, such as legislation, regulations, contracts, and policies, can be an excruciatingly manual process. And, with the increasing volume and complexity of new and evolving regulations, it can be exceptionally challenging to identify, extract, and fulfill relevant regulatory obligations within stringent implementation timelines. As per Thomson Reuters’ annual "Cost of Compliance Report," in 2021, regulatory intelligence saw an average of 246 new regulatory alerts each business day from across 190 countries. This means there were up to 64,152 individual regulatory alerts from which businesses had to review and extract obligations in 2021. The 2022 report showed 74% of respondents expected an increase in regulatory activity.

Manual extraction of obligations from the constant flow of new and regulatory updates can be tedious and repetitive. Compliance professionals can spend hundreds of hours identifying, capturing, and compiling relevant regulations, only to spend many more hours extracting specific obligations from each regulation and then uploading them into compliance management software. At that point, policies, controls, training, and employee attestation must also be completed. The potential for human error and process delays anywhere along this workflow creates additional risks. The stakes are high in obligation management. Even small errors can create serious consequences for the financial institution and its customers.  

MetricStream’s AI-Powered Compliance Management Now Streamlines Obligation Management

MetricStream’s AI-Powered Compliance Management software is revolutionizing obligation management for financial institutions. Financial institutions can now improve critical processes, efficiency, and accuracy by automating essential tasks in regulatory processes and obligation management while reducing costs. With MetricStream, your organization can now effectively manage regulatory obligations with the following:

• Automation: MetricStream automates data entry by extracting information from regulatory documents and rule books. This not only saves time but also reduces errors. 
• Risk Reduction: With MetricStream, risk analysis, assessment, and mitigation become easy and efficient. This framework can help identify relevant compliance risks from the risk library and trigger risk assessments to identify potential exposure areas. Financial institutions can therefore reduce their overall risk and protect themselves from potential losses. 
• Improved Efficiency: MetricStream’s AI framework for obligation management helps businesses automate the process of tracking and managing obligations by identifying patterns, phrasing, and language associated with compliance obligations and surfacing them for prioritization and processing, streamlining and improving obligation management accuracy. 
• Increased Agility: Time-consuming tasks such as risk assessments, control tests, policy updates, issue status updates, etc., can be automated through obligation management and triggering periodic or one-time assignments to the respective task owners. 
• Build Confidence: Improving decision-making by providing employees with better data and insights can help organizations make better-informed decisions about best managing obligations.

What’s Next for AI in Obligation Management?

Regarding obligation management within GRC, AI is well-positioned to deliver measurable value. And with continued development, AI systems within GRC will become more accurate and reliable over time. At the same time, AI technology will become more widely adopted, and the cost of implementing AI systems will decrease, making them more accessible to even small- and medium-sized businesses.

Although AI is automating and augmenting many processes in the financial industry, there remain many opportunities for growth within regulatory obligation management. First, for artificial intelligence to perform best, it requires a great deal of data and analysis to drive consistent, intelligent decision-making. The volume of data that financial firms are capturing and integrating into their GRC systems today is creating new opportunities to deliver additional decision augmentation and intelligence through AI-driven systems.  

Get Future Ready with MetricStream

AI-enabled solutions from MetricStream provide valuable and innovative solutions for financial institutions to streamline the management of their obligations. With MetricStream’s AI-Powered Compliance Management software, companies can reduce manual processes, automate administrative tasks, improve accuracy, and gain better insight into their operations.

Want to learn more about how your organization can stay ahead with our AI-enabled solutions. Request a personalized demo now.

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