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Regulatory Compliance...Just a Risk or a hidden Opportunity? | Register To Post |
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| cobus.smit | Posted on: 2007/11/4 5:53 |
Moderator   Joined: 2003/1/11 From: Global Posts: 557 |
Regulatory Compliance...Just a Risk or a hidden Opportunity? Here is an interesting concept. Most organisations I've engaged with view regulatory compliance (and compliance in general) as a heavy burden - you MUST do it, but at a COST and the willingness to take some RISK in not complying to all aspects of an Act, until regualtory pressures force the priority...
Legilation and regulatory compliance becomes "all about the Financial Insitution" and not about ...the Customers. Sound basic doesn't it? So where is the "CUSTOMER" is all this? I'd like to put a challenge out there is saying that compliance should be viewed as an opportunity to know the Customer better. An opportunity for Innovation. Get away from Product-centric thinking now and rather focus on service delivery that is ultimately in the interest of the Customer. I'd like to refrain from specific legislation for now, but consider legislation that force the Banks to retain information about customer interactions, quotes etc. Is this not (as per example) an opportunity to store more information on a Customer, leading to better market segmentation and innovative Service delivery? Customers may be aware of legislation specifically where it touches their own objectives in terms of Finance - but mostly it seems that legislation is just to make life difficult for Banks. Should there not be a greater focus on the Customer - making things easier for them, or where legislation prohibits Customer's actually receiving certain benefits, would it not be better to offer services to provide them with an alternative that is best suited to their needs...? The glass should be half-full, not half-empty.
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| Jurgens Pieterse | Posted on: 2007/11/5 3:27 |
Moderator  Joined: 2005/5/5 From: systemiclogic.com Posts: 156 |
Re: Regulatory Compliance...Just a Risk or a hidden Opportunity? I think if a business looks at a compulsary expense as an investment and ask how can we get the best return for this expense much more benefit can be achieved. Being legally complient offers a competitive benefit since it is something that still needs to be done by any new entrants into the market. In that sense compliance becomes a barrier to entry into the market.
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| sander.brandt | Posted on: 2007/11/8 3:10 |
Quite a regular   Joined: 2006/6/20 From: Systemic Logic Posts: 38 |
Re: Regulatory Compliance...Just a Risk or a hidden Opportunity? I believe that compliance is inherently beneficial and should be approached strategically to unlock a competitive advantage.
The basic concern of compliance is to reduce risks and increase the transparency. As customers (… and shareholders) in financial services these are the determining factors when associating with a brand. So why wait to the last minute to implement these sound business concepts? Yes, there are costs associated to complying, but I contend that these can be minimised by considering a strategic approach to deliver long-term market growth. Some lesson experience has shown me: Air Traffic Control Understanding your compliance radar and more importantly the lead times and implementation times is crucial. On a daily basis I see management underestimating the impact and ambit of legislation. They prefer to see legislation as a burden and not as an opportunity. This result is procrastinating on adoption and inevitably entertaining risk vs opportunity scenarios. Commonality Legislation is marked by redundancy and a common example is retention of records. Using this as an example, why not solve this for the business once and not go off and build fixes and add-ons. This should be handled strategically to ensure there is not duplication or excessive redundancies. If your traffic control tower is designed correctly, you can extract current and future commonality, combined this with strategic business drivers to manage implementations strategically. Compliance encourages integration I have observed that the fundamental impact of compliance projects is the appreciation for integration. Integration of systems, controls, reporting and customer data…. Is this not a strategic drive for your organisation? Perception and Reputation: Consistently demonstrating your ability to comply with newly promulgated legislation, and preferably being the “first to market,” would bolster your customer’s perception of your brand? It sends a clear and unspoken message that you are a good corporate citizen with utmost interest in reducing risks and improving customer transparency. These are some of the reasons that I suggest make compliance beneficial. Remember, legislation does not just appear, it is a consultative process that starts long before promulgation. The trick is bringing together strategic business drivers and commonality with a view on long-term business sustainability. |
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