How to balance the reward and risk of advancing technology
With the rise of blockchain technology, cryptocurrencies, FinTech and RegTech, compliance departments are facing a lot of new challenges. There’s a fine line between enjoying the benefits of advancements and managing the risks that come with them. With technology moving so fast, regulation has a hard time keeping up – here’s what you can do to close the gaps and get ahead.
Develop a strategy for high-risk products
No one expected cryptocurrencies to be so poplar and regulatory bodies are still catching up. When it comes to intellectual property (IP) and finance, you need to have policies in place and a strategy for staying on top of regulatory changes. Audit your current process and identify areas that need improvement – if you’re not already taking advantage of cloud technology to manage compliance and risk, explore options like CTO Boost’s Brilliant IG.
Protect your data
Data protection should be the number one priority for IT and compliance departments. The cost of a breach, loss or remediation can severely impact the future of your business, especially when it comes to sensitive customer data. Allocate time and resource toward strategic thinking and planning in this area. Things like secure off-site storage and a disaster recovery plan will ensure your business keeps running if security is compromised. In addition to protecting customers, your cybersecurity plan should also be contributing to the safety of the industry as a whole.
Pay attention to trends
Financial and regulatory technology is constantly evolving and although it can be tough to keep on top of the latest releases, ignoring them is not an option. Take time to research trends, find the right solutions for your business, and make sure they’re implemented correctly. Some of the greatest challenges in technology and data management over the next year will be strengthening cyber-resilience, implementing regulatory changes, and updating old or inherited systems. Speaking of trends…
Proceed with caution
Do your due diligence before adopting new advancements. The initial admiration can wear-off quickly as risks are revealed. For example, robo-advisors may be great at tracking investments and analyzing outcomes, but they can’t replicate the intuition of knowing what’s best for a client that comes from having a personal relationship and face-to-face contact.
In summary, make sure you’re up to speed with General Data Protection Regulation (GDPR) and jurisdictions that apply to your business. You don’t have to be an expert, but you do need to have a strategy in place.
Learn more about Brilliant IG http://www.brilliantig.com or share a strategy that’s working for you, below.