The benefits do not in any manner reduce the fulfilment and adherence to compliances, which if taken lightly, could also result in imprisonment of key personnel.
Compliance is always viewed as a cost to an organisation hence the consistent approach to simplify fulfilment at the lowest cost possible making this a sweet spot for innovative technology solutions, and even more important from an SME perspective since this sector works on tight operating costs.
“Reg Tech” is a common jargon in recent times which refers to regulatory compliance technology which could vary from simple tools which list the various compliances that an organization must adhere to in a checklist pattern to complex integrated platforms which use a combination of source systems and manual intervention to complete the end-to-end cycle of compliance fulfilment process. Different solutions are available for organizations to choose from based on suitability and budget.
Small and medium-sized enterprises (SMEs) require different forms of assistance in the area of compliance due to their sensitivity to costs. This assistance includes determining which compliance regulations apply to them, understanding the compliance process, knowing the timelines for fulfilling requirements throughout the year, having a storage and retrieval system for compliance documents from multiple years, readily accessing various forms and formats, implementing an alert mechanism to avoid missing compliance deadlines, and staying informed about the latest compliance status for their organisation.The Reg Tech tools take care of most of the listed requirements in a simplified manner whereby the compliances can be fulfilled in a less time-consuming manner by any person who need not necessarily be an expert in the compliance domain. This will reduce dependency on human resources and the cost thereof since most of the compliances are repetitive tasks at defined periodicity requiring same information to be filled in different formats which can easily be automated.Reg Tech platforms offer affordable solutions for organizations to manage regulatory compliance. These solutions include configuring applicable compliances, interpreting laws and regulations in simplified language, providing guidance on penalties for non-compliance, and sending proactive alerts on compliance updates and deadlines. The platforms also offer integration with other software, a repository of forms and documents, and the ability to audit compliance status across various locations and partners.To summarise, automation provides convenience, reduces manual efforts, and increases transparency and governance which provides peace of mind to any stakeholder of SME organisations on compliance adherence.
Mahesh Krishnamoorthy is Managing Director of Core Integra.
