AI is proving to be a game changer in the field of regulatory research, particularly in the way compliance programmes are structured and managed.
According to 4CRisk.ai, with tools like 4CRisk’s Regulatory Research Product, organisations can significantly enhance their compliance efficiency and achieve a return on investment (ROI) in less than a year. This transformation is essential in a landscape where navigating diverse regulations is increasingly complex.
In an example with the assumptions outlined below, 4Crisk.ai shows how 4CRisk’s product offers an estimated improvement of 90% in efficiency, translating to significant financial savings. By assuming a fully loaded daily cost of $500 for each staff member, the potential annual savings amounts to $264,333. This efficiency means that staff members can be liberated from tedious manual tasks, allowing them to focus on higher-value analysis and strategic decision-making within the organisation.
The tool’s efficiency translates to a substantial freeing of resources, with approximately 529 staff days saved annually out of the 1,000 days typically consumed by compliance-related tasks. The assumptions that underpin this efficiency savings are based on managing obligations under 50 distinct regulations and rules, including key standards like NIST CSF, PCI DSS, GDPR, and CCPA. Each regulation comprises an average of five sections, leading to a comprehensive rulebook of 250 requirements that must be created and reviewed across various business units.
The first process in this transformative approach involves creating and managing rulebooks and inventories. This step requires identifying the relevant agencies and sources of applicable rules and standards. By leveraging AI, compliance teams can generate tailored rulebooks based on jurisdiction and the products they offer. The AI’s ability to process extensive data sets allows it to review thousands of regulatory documents swiftly, delivering results up to five times faster than traditional methods.
With 4CRisk’s Regulatory Research product, organisations can auto-generate accurate rulebooks within minutes, simplify the extraction of large data sets, and break down extensive documents into manageable sections for analysis. The tool also assists in tagging rules based on their type—informative, prescriptive, permissive, or prohibitive—ensuring that governance documents are reviewed based on relevant criteria.
The second process focuses on collaboration, enabling team members to review, comment on, and approve draft rulebooks efficiently. This collaborative environment is crucial for finalising rulebooks tailored to specific business units and regulations. 4CRisk’s solution allows subject matter experts (SMEs) to work together seamlessly, significantly reducing the time taken to complete the review process from 10 days to just three.
Merging similar obligations is the third process where 4CRisk’s product shines. The tool automatically identifies and merges similar rules across different regulatory frameworks, creating a common obligation while maintaining an audit trail to the original sources. This process, which typically consumes 50 staff days, can be completed in just 15 days with the aid of AI.
The final process involves mapping regulatory obligations to business information. This step ensures that compliance artifacts are accurately associated with the organisation’s taxonomy, which includes risk categories and products. With AI’s capabilities, organisations can streamline this mapping process, reducing the initial workload from 900 staff days to approximately 450 days.
Beyond the tangible benefits, the qualitative improvements of using AI in compliance processes are equally significant. Organisations can reduce the risk of non-compliance through accurate rulebooks, eliminate human errors, and enhance the quality of regulatory research. By becoming faster and more agile, teams can create up-to-date rulebooks that meet their business obligations efficiently.
In summary, AI-driven technology is not just enhancing compliance programmes; it is fundamentally revolutionising how organisations navigate the complex landscape of regulations. By leveraging such innovative solutions, businesses can gain strategic advantages, ensuring they remain compliant while optimising their internal processes.
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