The findings of the MetricStream Research report were presented at the MetricStream GRC Summit 2016
A MetricStream Research report on Regulatory Change Management (RCM) has found that in the majority of businesses, RCM processes are still maturing. The MetricStream Research report, based on a survey conducted in December 2015, features the insights and perspectives of over 120 compliance professionals in North America and Europe. The respondents represent enterprises of multiple sizes and a wide variety of industries, including banking, financial services, insurance, healthcare, pharmaceuticals, and manufacturing.
The MetricStream Research report was released at the MetricStream GRC Summit 2016, which took place on April 25-27, 2016 in Washington, DC. The findings of the report were also presented at the summit by Warren Bell, Associate Director at MetricStream Research.
Keeping up with the constant pace of regulatory change has become an increasingly challenging and costly endeavor for organizations across industries. Not only do they have to scan multiple sources for regulatory changes, but they also have to understand the impact of these regulatory changes on the business, implement appropriate policies, processes, and controls, and then conduct audits to ensure that all the regulatory changes have been implemented effectively.
The MetricStream Research report provides insights into how organizations are addressing these challenges. Some of the key findings of the report:
- Enterprises are dedicating a significant number of people to RCM - over 30 percent of the large businesses surveyed have 21 or more FTEs, while 35 percent of mid-sized businesses have 3-10 FTEs, and over 45 percent of small businesses have 1-2 FTEs
- To track regulatory news and updates, 83.7 percent consult regulatory agency filings and releases, while 69.9 percent consult industry or trade associations
- The top responsibilities involved in RCM include identifying the impact of regulatory changes (74 percent), validating the effectiveness of compliance and reporting after the change (73 percent), and ensuring that the changes are implemented (71 percent)
- Most organizations are still at a low level of maturity when it comes to automating RCM - 48 percent of the respondents still use basic office productivity tools such as spreadsheets to manage the RCM process
- Only 8.1 percent of respondents use either RCM software on a GRC platform or niche RCM software
"The MetricStream Research report finds that there is significant scope for organizations to improve the efficiency and effectiveness of their regulatory change management efforts," said French Caldwell, Chief Evangelist, MetricStream. He continued, "While many organizations have the people and processes in place to address regulatory change, they often lack the technology to simplify and strengthen their efforts. Technology doesn't just automate regulatory change management. It also provides timely visibility into regulatory changes and their impact which, in turn, enables organizations to make better business decisions that drive performance."