Monitoring, managing, and adapting to new legislative requirements has never been more difficult, but a business rules management system could ease the burden.
The financial services sector is one of the most highly regulated industries in Europe today, and with the arrival of the new General Data Protection Regulation (GDPR), the regulatory environment is set to get a lot more complex. While a well-regulated financial sector is vital to ensure stability and trust, compliance is still a big cost that companies need to deal with, both in terms of ensuring their current compliance, or even worse, having to prove that they were in compliance in the past. Add to that the fact that new rules continue to be introduced, existing rules are constantly changing, and that all this must be reflected immediately in companies’ business processes.
So, it’s not hard to understand why many financial companies are at the point where the complex business rules that they use to ensure compliance are becoming impossible to monitor, manage and adapt fast enough to meet new legislative requirements. In fact, one study conducted by Thomson Reuters found that firms in the financial services sector spend nearly one whole day per week tracking and analyzing regulatory change — that’s a significant investment of time and resources.
Firms are essentially left in a no-win situation. Noncompliance is simply not an option, so they expend all of this time and effort just to keep up with regulatory change. Clearly, a new approach is needed.
A New Solution
Take a look at this new whitepaper from London-based Lux Magi, which has been applying Decision Modeling to finance and regulatory compliance projects since 2011. In the whitepaper, the firm describes the challenges and risks associated with today’s regulatory environment. But more importantly, Lux Magi presents an innovative solution that can help financial institutions address regulatory compliance and keep up with ever-changing regulations, all while reducing the operational costs and risks associated with noncompliance—a business rules management system.