Just five percent of UK financial services and insurance companies regard regulatory compliance as simply a burden, a new independent survey has found. As companies race to address new regulations such as Basel II and Sarbanes-Oxley, most firms in this sector appear to welcome the challenge as a catalyst for much-needed business process improvements and IT investment.
Commissioned as part of a study* by the ECM (Enterprise Content Management) leader, FileNet the survey identifies operational efficiency improvements as the principal business benefits of addressing new compliance requirements. This was cited as a positive side effect by over 40 percent of the compliance and IT heads surveyed. A further third of companies (34 percent) said they expected their compliance initiatives to result in improved business operations.
These views are also reflected in the importance placed on compliance as an overriding IT objective. Some 40 percent of those polled selected 'improved responsiveness and transparency to regulators' audit demands' as their primary IT objective over the next 18 months. A further 28 percent said the ability to react to market and regulatory changes ranked above other IT investment priorities.
"For real competitive advantage, companies need to implement an enterprise framework that supports the core elements of any regulatory requirement - current and future - and which has the inherent flexibility to accommodate change quickly," says Fred Janssen, VP EMEA Marketing at FileNet. "This lower the total cost of compliance as well as opening up a host of additional benefits - from operational efficiency and risk mitigation, through to optimum customer service."
FileNet's survey also reveals that UK and sector-specific regulations are a greater cause for concern than higher-profile European and US regulations. Some 29 percent of firms reported that addressing these regulations was their most pressing priority, compared to 24 percent citing EU regulations, 22 percent citing Basel II and just 20 percent citing Sarbanes-Oxley.
However, less than one-in-twenty respondents said they felt 100 percent confident in their ability to address all new compliance requirements.
"Compliance is a far-reaching, enterprise-wide challenge. It's not just something to do with reporting numbers to the financial markets," adds Janssen. "Organisations need to become compliant, remain compliant and demonstrate compliance in all their business operations. In order to achieve this, compliance must be woven into the fabric of the organisation and be pervasive in all business functions. IT and compliance directors should therefore be involving senior business executives in this issue, especially since ultimate responsibility for compliance lies squarely with these executives."
Further information on the compliance issues facing financial services organisations is available in a new white paper published by FileNet. This paper, along with related materials and research, is now available on FileNet's compliance website: www.filenet.com/fscompliance_emea.
