90% Plan to Increase Funding for Compliance Automation, But Only 1 in 5 Have a Strategy to Automate
While compliance leaders may understand how automation can help their organizations more efficiently respond to shifting regulatory expectations and the changing risk landscape, more than half of 206 U.S. chief information officers (CIOs) and chief compliance officers (CCOs) surveyed by KPMG are not yet automating their compliance activities, according to the new KPMG report, Innovating compliance through automation. And, while 90 percent plan to increase funding for automation in the coming years, just 1 in 5 have a well-defined strategy to automate compliance in the next two years.
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“Companies are automating routine operational tasks to increase efficiencies and lower costs,” said Amy Matsuo, Principal in KPMG LLP’s Risk Consulting Services and National Leader of KPMG’s Regulatory Insights Practice. “The next step is for organizations to pivot from using automation in operational processes to deploying it for compliance analytic and predictive purposes. To do so, they must first prioritize compliance activities that can be automated while setting expected returns on investment.”
Obstacles to Automation
“Organizations will need to identify personnel with the appropriate skills, knowledge and availability to undertake automation. This requires a unique skillset that blends an understanding of business operations, compliance issues and risk management with technological proficiency,” Matsuo said.
Where is the focus?
- Companies are prioritizing compliance automation based on the following categories of regulatory obligations:
KPMG’s Compliance Automation Survey report, Innovating Compliance through automation, captured insights from a survey of 101 CCOs and 105 CIOs at U.S.-based companies across several industries about their organization’s compliance efforts – with a focus on current and future interest in automating compliance activities.
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