By CastleHill Managed Risk Solutions, LLC.
GRC Thought Leadership from CastleHill Managed Risk Solutions, LLC
Regulatory Change Management is an enterprise initiative that encompasses managing evolving requirements impacting risks inherent to a company’s products, services, processes and systems. Key challenges facing regulated industries today include:
- Ensuring and demonstrating compliance with current requirements
- Monitoring and detecting material changes to requirements impacting your business
- Identify impacts to requirements driven by the evolution of your business environment
Companies need to have a firm understanding of their regulatory requirements and how they are structurally tied to primary components of their business model. Just as changes to the requirements can impact the business, changes to the business (e.g., products, processes, systems, geographies, customers) can impact the inventory of material requirements. Managing changes in regulations impacting business (outside/in), and changes to business needing to be evaluated against requirements (inside/out) in a repeatable manner is key to success.
Effective management of Regulatory Change entails dedicated focus on:
- Changes in operational processes that execute controls to ensure compliance.
- Changes in Geographic footprint that may expand regulatory requirements.
- New or enhanced product offerings that change or add compliance requirements.
- Ensuring a consistent and effective approach to compliance across silos and the enterprise.
- Establishing processes and managing tools to assist with impact assessment, data capture, data quality, reporting, and action plan management.
Challenges & Target State
When setting goals for the target state of regulatory compliance and within or across business areas, it is very helpful to thoughtfully asses your organization using a maturity model for handling Regulatory Change: