In the world of Regulatory Change Management (RCM), AI is proving to be a revolutionary force, transforming each step of the process and delivering substantial business value.
According to 4CRisk.ai, by examining a typical RCM workflow, we can see how AI not only streamlines operations but also significantly enhances Return on Investment (ROI), providing a competitive edge in regulatory compliance.
At the forefront of this transformation is 4CRisk’s Regulatory Change Product, which boasts a potential 5-20 times improvement in efficiency. In an example with the assumptions at each step of the process, outlined below, 4Crisk.ai shows how
ROI that can be realized in less than a year. This translates into annual savings of $178m, assuming the cost of a fully loaded day for a staff member is $500 ($120,000 annually). More importantly, it liberates your workforce from tedious manual tasks, allowing them to focus on higher-value analysis and decision-making.
The first step involves anticipating regulatory changes through horizon scans. In this phase, AI tools like 4CRisk can parse through extensive regulatory documents rapidly, extracting and summarizing pertinent changes and tagging them for easy reference. This capability drastically reduces the time spent by Subject Matter Experts (SMEs) from days to mere minutes, demonstrating an efficiency improvement of up to 20 times faster over traditional methods.
Next, the AI system analyses and maps various rules, regulations, and laws to the organization’s policies and controls. Here, AI significantly improves on manual labour – 4 times faster than a human alone – required for compliance framework management by automatically rconducting an applicability and impact analysis and a difference analysis to see required policy and control revisions. This not only ensures compliance but also enhances the organization’s agility in responding to regulatory changes.
The third step focuses on identifying, accessing, and managing changes. AI facilitates a detailed impact analysis of each regulatory change on policies, procedures, and controls, streamlining this process fourfold from traditional methods. 4CRisk’s AI models provide insights into the potential impacts of regulatory changes, allowing organizations to prioritize actions effectively.
In managing changes to completion, AI further demonstrates its value by enabling quick updates to compliance documents and recommending precise language alterations. This step sees a threefold increase in efficiency, ensuring that changes are implemented swiftly and accurately.
Finally, AI aids in the reporting and answering of questions related to regulatory compliance. By automating data consolidation and reporting, AI reduces the effort required by half, allowing for more accurate and timely governance and compliance activities.
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