Inside the Mind of a Compliance Officer: 4 Ways to Turn Financial Compliance into a Nightmare

By July 12, 2019 November 25th, 2019 Trends and thoughts

Since the crisis of 2008, financial services organizations have been subject to an increasing number of compliance regulations. The responsibilities and risks associated with managing these are quickly evolving, putting compliance professionals to the test every day.

In our latest Verint Financial Compliance video, we asked “what keeps a compliance officer awake at night?” and tried to imagine what could go wrong if they failed to meet the following four common compliance challenges:

1. Answering regulatory requests in a timely manner

Some organizations need to jump through too many hoops when they need to answer regulatory requests within a limited timeframe. The number of communication channels, and the amount of data generated every day is expanding, making data capture, storage and management more perplexing. Without the proper tools in place — such as advanced speech transcription and powerful analytics — locating all the information related to a financial transaction can feel like finding a needle in a haystack.

2. Maintaining reliable and complete recordings Financial services organizations are often required to capture all transaction-related communication — regardless of what the channel and device is. This obligation puts a heavy burden on businesses, to invest valuable person-hours in monitoring and verifying the state and performance of their complex recording infrastructure. Today, when transparency is more important than ever, failing to spot irregularities in compliance recording and interaction capture can easily lead to penalties, scandals and reputational damage.

3Enforcing legal and ethical compliance policies Brokers, traders, advisors and other financial professionals want to use the tools that their colleagues, stakeholders and clients do — and corporate policies are unlikely to stop them. They are online almost 24/7, communicating via mobile phones, instant messaging and unified communication tools (such as Symphony and Microsoft Teams). In this new, always-online landscape, compliance officers still have to do their job: They must monitor and capture all channels, enforce policies and prevent non-compliant actions from occurring.

4. Increasing personal liability In the past decade, regulators have taken steps to reveal the individuals behind corporate misconduct. Although accountability spans across the organization and affects all functions, compliance officers can be held responsible for not avoiding malpractices, which can cause both reputational and monetary damage to the company. 

When these challenges add up, compliance professionals can easily find themselves in an overwhelming situation. Put yourself in the shoes of a compliance officer and check out our video.

Originally posted on: Verint Connect

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