June 15, 2022 | Jennifer Clarke
Estimated reading time: 4 minutes
Global Regulatory Compliance: Common Problems and Transformative Solutions
This article was first published by LogicGate, a partner of CUBE.
Multinational organizations, and those on the path to becoming one, face seemingly insurmountable challenges in navigating regulations facing their business from every country in which they operate.
Shifting political and societal landscapes, endless new or revised regulations, and industry adoption of new technologies all contribute to the difficulty of managing global regulatory compliance.
Yet, considering that organizations lose an average of US$4 million in revenue due to a single, isolated non-compliance event, compliance must be a priority — not an afterthought.
How can multinational companies manage global compliance? It’s a complex problem, but regulatory compliance software has emerged as a powerful solution. Sometimes called RegTech, this emerging technology allows companies to stay ahead of regulatory changes — rather than waiting to fail an audit to discover a new regulation.
In this article, we will explore the common challenges multinational organizations face and how they can better manage global regulatory compliance. We’ll also explore our new partnership with RegTech company CUBE and how its technology will enhance our services.
The Challenges of Global Regulatory Compliance
Global companies across nearly every industry have similar challenges in their efforts to comply with global and federal regulatory obligations. Common challenges include:
The rapid adoption of new technologies: New technologies such as AI, IoT, and machine learning bring both reward and risk to the compliance space. Regulatory agencies work fast to tackle the emerging risks posed by these technologies, which means new regulations for your compliance teams to manage. For example, the widespread adoption of cloud computing resulted in cybersecurity regulations and guidelines for third-party risk assessments.
New or revised regulations are announced every day: Most countries will have an agency regulating one or more aspects of your business. These agencies announce new and revised regulations as they’re enacted, not on your schedule. So it’s your organization’s job to stay on top of every change and react to it accordingly.
Ever-changing political landscapes: Changes in leadership and dominant political parties often mean a change in the government’s stance on regulations regarding your industry. For example, a new President of the United States often means new heads of specific agencies, and those new leaders will have their agendas and viewpoints.
Of course, the examples above are only a few of the regulatory challenges that arise for businesses looking to operate across multiple countries. Therefore, organizations must be aware of every regulation they currently face, every regulation they may face in the future, and enact policies that allow them to remain compliant.
Despite the increasingly globalized nature of financial services, there continues to be very little worldwide regulatory harmonization. As CUBE’s Rob Fulcher recently discussed on our podcast, not enough has been done to coordinate regulatory agencies internationally. So how can organizations overcome disjointed regulatory changes and accomplish compliance?
How to Better Manage Global Regulatory Compliance
The emerging field of regulatory software or RegTech, is becoming increasingly crucial to multinational organizations.
RegTech aims to help organizations remain compliant by automating much of the manual and labor-intensive processes for regulatory change. RegTech platforms are constantly updated with new data from global regulatory agencies. Companies can then respond with new or updated policies to remain compliant.
The regulatory compliance team remains invaluable for the critical thinking behind regulatory change. However, instead of spending their time combing through agencies’ websites, the team can focus on assessing the applicability of obligations, and revising or creating policies to react to regulatory changes. Not only will this require less time lost to time-consuming manual tasks, but it’s also a better use of the specialized workforce your company is employing.
LogicGate and CUBE: A Partnership for Improved Global Compliance
LogicGate is known for innovative solutions, ranging from data privacy to compliance management. LogicGate is always looking to improve its services, which is why they’re excited about the partnership with CUBE to enhance its multinational compliance offering.
CUBE is a RegTech provider that transforms global regulatory data into actionable regulatory intelligence. Financial organizations then leverage this intelligence to make meaningful policy changes without needing to manually comb through dense policy reports from regulatory agencies.
How CUBE and LogicGate Work Together
LogicGate and CUBE have teamed up to open up regulatory compliance intelligence to more organizations with a multinational presence beyond the financial sector. This integration is built to bring CUBE’s robust compliance intelligence directly into LogicGate’s Risk Cloud platform.
How Does This Partnership Benefit LogicGate and CUBE Customers?
So, how do current and future customers benefit from this new partnership? Some notable benefits include:
- Effectively manage compliance across multiple business lines, locations,
- See all global regulatory data translated into English, removing the need for third-party translation
- Reduce the time and resources spent on manual processes
- Transform the role of regulatory technology to become a necessary cornerstone of multinational organizations
- Create a worldwide, holistic view of regulations facing our customers’ industries
- Avoid fines, penalties, and security vulnerabilities that accompany non-compliance
CUBE simplifies compliance for regulated companies of all shapes and sizes.