The advent of online calendars that people can share with others has been a game-changer in efficiency — both at the workplace and at home with the family. It’s easier to remember that you have a meeting scheduled with your boss when you get a reminder ten minutes before it starts. Your spouse is less apt to schedule sport fishing with friends on the same day that your mother is coming to town, and reminders for spouses to tackle those “honey-do lists” can go both ways.Likewise, having an automated, centralized way to ensure that everyone within a community financial institution (CFI) is up to snuff on the latest regulatory compliance requirements is also a game-changer in efficiency — and it greatly reduces the risk of errors or critical steps falling through the cracks.The Limitations of a Manual ProcessCompliance policy management software can do just that. Across industries, more and more organizations are realizing the vast improvement of their practices by forgoing manual processes in favor of automation. The global policy management software market logged in at $1.33B in 2021 and is expected to grow at a compounded annual growth rate of 13.7% to $3.04B by 2027.Manual compliance management for policies and procedures has several disadvantages that reduce effectiveness and increase the risk of human error, such as:
- Minimal resources for regulatory updates. Compliance managers have to do quite a lot of footwork to review new requirements and create the templates they need to develop an internal policy that adheres to the update.
- Lack of self-service options. Without a central repository that employees can use to reference current policies to gain a better understanding of them, compliance managers have to fill in that gap as the first point of contact, which can lead to a huge influx of requests and questions they may not have time to answer.
- No central location for end-to-end compliance management. Compliance managers end up using multiple platforms for different stages of the compliance update cycle, such as spreadsheets to identify affected employees, email to track down completed compliance training, and various other repositories for coordination and research.
The Benefits of AutomationCloud-based compliance policy management software addresses the most common inconveniences and risks associated with manual processes. In addition to saving time and money, policy management software can offer the following benefits:
- Automated update alerts. Receive automated alerts for regulatory changes, when a new regulation is implemented, and details which policies within a CFI might need updating.
- Templates and standardized language. Rather than drafting new company policies to accommodate these regulatory changes, there are built-in templates that use standardized language CFIs can implement. This helps prevent potential errors in interpretation.
- Automated notifications. Triggered emails make sure each employee impacted by a particular regulation change has reviewed and acknowledged the policies sent to them.
- A centralized repository. Having information and attestations all in one centralized location greatly enhances audit reports, which protects CFIs from potential litigations and financial risks.
- Resources and learning opportunities. Regulatory resources and quizzes can be incorporated to help employees understand the changes and how their positions play a role in complying with a particular regulation. This is especially critical as examiners often cite institutions for violations when employees don’t fully comprehend the nature of a particular regulation. In fact, the Federal Deposit Insurance Corporation has said that policies are historically the leading category of “matters requiring board attention.”
Compliance policy management software turns the normally time-consuming, headache-inducing task of ensuring CFIs and their employees remain compliant with current regulatory practices into an organized, automated process that is easier for both compliance officers and the employees who need to understand regulatory changes in order to implement them correctly. Embracing automated compliance can not only help streamline your institution's processes but could also mitigate risks, ensuring adherence to evolving regulations and fostering a culture of continuous improvement.
