Attivio Active Regulatory Management

Financial executives chartered with managing risk and ensuring regulatory compliance grapple with a complex, largely manual and decentralized series of processes that must be executed effectively to protect the company from the potentially steep costs of violations. Attivio's Active Regulatory Management (ARM) is an automated closed-loop process for centrally monitoring regulatory changes from hundreds of agencies, quickly triggering revision of affected policies, proactively distributing policy changes and readily producing an audit trail. The net result is fewer fines, improved compliance, and ultimately a reduction in self-insurance requirements.

 

Accenture predicts that it will cost the financial industry between $3 billion and $5 billion over the next three years to implement The Dodd-Frank Wall Street Reform and Consumer Protection Act, which makes it a much more expensive proposition than other landmark regulatory reforms in recent years such as Basel II.¹

A poll of 101 financial industry executives found that nearly half (49 percent) thought their profits would decrease as a result of the new Act.¹

Regulatory Compliance Conditions

• Regulations originate from hundreds of agencies and jurisdictions
• Regulations and guidance change frequently
• No standardized format used by regulators
• Hosted solution monitor only a portion of regulators and may pose security issues

Regulatory Compliance Challenges and Costs

• Affected policies must be updated quickly
• Current regulatory-monitoring and policy-updating processes:
  • Are not centralized or automated
  • Consume resources and delay policy changes
• Financial impact:
  • Firms dedicate significant capital for underwriting self-insurance against future fines and penalties
  • Violations can affect both profitability and reputation
  • Manual monitoring and communication is labor intensive and slow

Accenture believes that the top and most systemically important bank-holding companies, insurers and mid-size banks will bear the largest expense, spending between $100 million to $200 million each in some instances.¹

Accenture estimates that the hardest hit firms could also see profits fall between 20 percent and 30 percent.¹

Impact: Proactively managing regulatory changes and policy updating is complex and expensive.

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Centralized and Automated Regulatory Management

Attivio's Active Regulatory Management™:

• Automatically captures new and changed rules and guidance information from all relevant regulators, regardless of format
• Aggregates, indexes, links and manages rules, updates, internal data and policies
• Makes available and automatically delivers rules, updates, news and alerts/action tickets to users in role-based dashboards
• Centralizes and simplifies evidence trail for compliance audits

Role-Based Dashboard for Managing Processes

Dashboard provides comprehensive view of all processes

How Active Intelligence Engine® (AIE®) Streamlines Regulatory Management

AIE: Unifies, indexes and JOINs disparate internal and external information sources Delivers role-based active dashboard with behind-the-scenes SQL queries Automates processes with workflow and alerts Ensures up-to-date permissioning Provides enterprise-class environment

Results: Stay on top of all regulatory changes Link internal policies to relevant regulations for automated change notification Map and centrally manage roles and responsibilities for creating, editing and managing policies Oversee audit trail of who has read and understood a policy Archive historical and current versions of policy statements Automate reports to prompt users and assist with supervision

 

¹ "US Financial Regulatory Reform: Cost or Opportunity?" — Accenture