“The feds are right; we can’t separate culture and compliance. A strong compliance culture teaches individuals acceptable behavior and restrains excessive risk-taking.”
– Richard L. Cassin, Founder and Editor at Large, FCPA Blog
This week, we consider how employers are grappling with how to handle employees using off-system messaging applications for business communications. We explore the “risk creep” phenomenon and how businesses can prevent it. We examine nine accelerating and emerging finance and regtech trends to expect in the regulatory compliance industry this year. Finally, we consider the business risks of using ChatGPT and highlight courses of action to address these risks proactively.
The Messaging Dilemma: Grappling with Employees’ Off-System Communications
Employers are grappling with how to handle employees using off-system messaging applications to communicate about work-related matters. While some companies have implemented policies banning non-approved messaging apps, others are taking a more pragmatic approach by providing guidelines on how to use them safely and appropriately. Experts suggest employers train employees to use messaging apps securely and ensure that confidential information is not shared on such platforms. Additionally, employers may consider implementing monitoring software to ensure compliance with messaging policies and protect sensitive data. The challenge lies in balancing the need for effective communication and collaboration with the risk of data breaches and legal liability.
What Causes ‘Risk Creep’ and How do you Prevent it?
“Risk creep” refers to a phenomenon in which an organization’s risk tolerance increases gradually. The reasons behind it include a need for clearer risk assessment processes, pressure to meet business objectives, and failure to reassess risk regularly. Organizations should implement a robust risk assessment process to prevent risk creep, including clear risk criteria and regular reviews. In addition, developing a risk-aware culture is essential in which all employees identify and report potential risks. Senior leadership should also be involved in the risk assessment process; ongoing training and education on risk management are necessary.
What to Expect in Finance and Regtech in the Year Ahead
Global regulatory compliance leaders gathered at numerous global regulatory technology (regtech) summits this year to share industry developments, insights, and predictions on where the industry is headed. Several trends will streamline and simplify the regulatory compliance process, playing an essential role in technology advancement and innovation. One thing is certain: industry experts in the regulatory compliance industry understand that digital innovations and regulatory technology are vital to ensuring competitiveness and robust compliance in today’s new digital banking world. Explore nine accelerating and emerging finance and regtech trends to expect in the regulatory compliance industry this year.
ChatGPT Risks and the Need for Corporate Policies
ChatGPT has quickly become a hot topic of conversation within businesses. The potential business applications are plentiful and a potential game-changer. But, like other new foundational technology developments, new issues and possible risk areas are presented. With the technology used by employees and consultants, businesses should evaluate the problems and risks to determine what policies or technical guardrails should be imposed on ChatGPT’s use in the workplace. From confidentiality to regulatory and compliance issues, this article highlights risks to be aware of and offers courses of action to address them proactively.
