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How treasury can turn regulatory burden - now 103 changes/day - into an opportunity

The Financial & Risk division in Thomson Reuters, one of the leaders in the provision of Governance, Risk and Compliance (GRC) services*, tracks the growth of regulatory announcements and changes world-wide. This research shows, see chart below, that the number of regulatory document changes, announcements and enforcements increased by 52% in 2013. Globally, there are now an average of 103 daily alerts.

Global growth of regulatory announcements

Source & Copyright©2014 - Thomson Reuters 

Currently, the majority of the activity is coming from UK/Europe and North America, so the situation is probably going to get worse, as the other regions implement the current regulations and develop their own regulations as well. 

Thomson Reuters also found that the costs, and the consequences of non-compliance are rising. 

How to manage the GRC burden

What corporate treasury departments need to manage their growing compliance burden is:

  1. to be kept up-to-date on the regulatory changes AND what to do about them
  2. to understand their GRC risk across the whole company
  3. systems, processes and workflows to help them manage their compliance burden.

Then, and only then, can they turn compliance into an opportunity for improved processes, cost savings and reduced risk.

Thomson Reuters have developed a unique approach to Governance, Risk and Compliance:

  • keeping clients up-to-date on what is happening in each of the regulatory areas
  • providing a single view of risk across the enterprise bridging together all the complex data from around the world
  • using standard GRC workflow processes.

This approach, they claim, turns risk into an opportunity, enables clients to make better informed decisions faster, and mitigates enforcement and reputational damage, as well as optimising the resources and personnel required.

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* Users include over 60 of the Fortune Global 100, 49 of the world’s top 50 banks and over 300 enforcement and regulatory agencies.


CTMfile take: It is vital for corporate treasury departments to turn the compliance burden into an opportunity for risk reduction, and cost reduction/control as the use of Bloomberg’s MARS investment analysis package showed. The use of third party services, such as Thomson Reuters’s GRC support services, will have to grow as the compliance burden is increasing and corporate treasury departments’ budgets are not being increased in line with the growing burden.

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This item appears in the following sections:
Operations
Control & Compliance in Operations
Financial Risk Management