Blog / 10 Oct, 2018

How compliant are your regulatory driven record keeping workflows?

For financial institutions, all kinds of electronic and paper-based communication must be meticulously managed and maintained in an effort to ensure your data is kept up to date and in compliance with a variety of global regulatory and legal mandates. Firms require systematic, comprehensive policies and procedures that ensure records are retained and destroyed appropriately. Your company’s future and reputation depend upon it.

Creating policies and procedures for organising, storing, archiving and destroying any organisation’s critical business documents can be overwhelming — but for financial institutions, it’s even more complex given the ever changing regulatory & legal guidelines that must be followed at all times.

Not only is it important to know what information is stored, how it’s stored and where, it’s imperative that documents and files be purged appropriately and in a timely manner to comply with government regulations. On top of this, proper procedures should be deployed to manage legal hold on a given dataset.

In today’s volatile political and legal climate, financial institutions must make every effort to meet national and state rules and regulations. Now, more than ever, it is absolutely critical that financial institutions maintain accurate records, store and dispose of them properly and have the ability to access them immediately in its original form when required to do so.

What does this mean for financial services businesses?

These requirements increase business and technology complexity further within an already complicated I.T. environment and lead to an increased financial burden and more legal/compliance obligations to stay on top of. The rapid increase in regulations and associated data volumes results in spiralling costs of operations.

Here is IDC’s analyst connection on how compliance and volume is driving the need for efficiency

In addition, there is the constant threat of legal or regulatory fines that could potentially impact the company’s reputation and brand image, negatively affecting things like stock price, your ability to hire key talent and most importantly, your ability to maintain or attract customers.

What do some of these issues look like?

  • Exponential data growth leading to fragmentation, retention management issues, defensible deletion and backup issues, integrity questions, and long-term management challenges. 
  • Increased regulatory mandates – leading to more stringent investigations and reporting requirements. 
  • Unclear regulatory requirements that are global in nature with regional implementation. 
  • This is a shared problem between Compliance and IT; both need a solution they can work with. 
  • A lack of data security. Data needs to be tamper-proof with secure, authorised access and encryption. 
  • A spike in hardware and software footprints required to support this growing problem are leading to an increased cost of Total Cost of Ownership (TCO). 
  • Not being compliant. Legacy technologies, unsecured data, data silos and an inability to scale in capacity to meet demand. 
  • Inconsistent data availability and a lack of efficient search and discovery workflow tools limit cross-channel search and an ability to break down data silos across the business. 
  • Multi-source, multi-type data sets become a challenge for investigative reporting. 
  • A lack of usable and readable data and format preservations. 
  • A lack of consistent, quality data sets.

 

To read the full whitepaper, click here to find out what you need to be doing to keep ahead of increasing regulatory requirements.

 

Whitepaper: Regulatory Record Keeping Mandates

Sreedhar Tulluri

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