Proactive Risk Management Using Data-driven Compliance

Data-driven compliance programs have evolved from being cutting-edge to becoming best practices, soon to be essential for companies managing compliance risks effectively, according to an article by All Things Compliance.

Active monitoring and analysis of data empower companies to identify and mitigate compliance issues, safeguarding their reputation and integrity. Collaboration among departments and a formal risk assessment are crucial in establishing robust compliance programs. 

Nicole Argentieri, acting assistant attorney general for the Criminal Division, stated that relying solely on self-reporting or anomalies is insufficient for the proactive use of data to combat white-collar crime. Anselmo Guevara, manager at VMware, stressed the necessity of data visibility in compliance programs, highlighting the shift from mere data collection to active analysis for identifying trends and potential risks.

Guevara recommended that companies begin their compliance journey by conducting a formal risk assessment, which would involve collaboration with various departments to identify process-related risks. He advised against focusing solely on simple solutions and suggested instead a comprehensive risk assessment to prioritize areas that require immediate attention. Leveraging data analytics tools is crucial in improving compliance efforts, as they enable the identification of patterns and anomalies. However, Guevara stressed the importance of validating suspicious transactions before raising any concerns, underscoring the need for due diligence in investigations to maintain financial integrity.

With advancing technology, the role of data analytics and AI in compliance monitoring is expected to grow, necessitating continuous learning and adaptation for compliance professionals to stay abreast of the evolving landscape. The integration of data-driven approaches is not just a trend but a fundamental aspect of modern compliance strategies.