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The anatomy of regulatory intelligence

Lance Mercereau
Lance Mercereau
27 August 2019

Regulatory intelligence is growing in popularity as companies seek to better manage non-financial risks.  Yet, there remains uncertainty of what exactly does regulatory intelligence mean.  This isn’t surprising considering if you were to ask 10 people to define, “business intelligence,” you’ll probably receive 10 different answers.  However, everyone who works in compliance will agree that without regulatory intelligence, it’s impossible to do their job. 

What I would like to do here is showcase the future of regulatory intelligence by explaining how regulatory intelligence is created and, specifically, what data you need in order to obtain the right level of business insight to power your compliance organization. 

For starters, not every regulatory intelligence product is the same. This is obvious but if you’re looking to buy a regulatory intelligence capability it’s important to know exactly what you’ll receive. To help you in the selection process, I have included at the bottom of this article questions you may want to ask your prospective software vendor.

The anatomy of regulatory intelligence

Many steps are required to turn raw regulatory data into actionable regulatory intelligence. 

I want to de-mystify two things: what data you need in order to have the relevant insight into regulations and what (software-powered) processes are needed to ensure that when a new or updated regulation is published it’s ready for you and your colleagues to act on in the shortest amount of time as possible. 

To begin with, there are number of types of regulatory data that can and should be used to create regulatory intelligence. 

By using a horizon scanning tool, it starts by capturing core regulatory data – the publisher, regulation, relevant dates, and categorization information such as the type of intelligence.  

Other data that is highly relevant and important to add to your core regulatory data is the contextual information for a specific regulation, such as speeches, articles, and opinions, as well as associated data including the reliability of the publisher, the frequency of the topic, and expert analysis.   

These two buckets of core and contextual regulatory data are the minimum for viable regulatory intelligence.  Leveraging the value of these building blocks of regulation intelligence requires adding knowledge held within your compliance organizations, such as routing the information to the right place at the right time and understanding the relationships with your company’s existing information and knowledge management systems so the regulatory intelligence can be effectively integrated into and used throughout the compliance lifecycle.   

For mature data-driven compliance organizations, what is highly valuable is adding premium content to your regulatory intelligence including legal briefs or interpretations of regulations produced by law firms.  

Regulatory intelligence is vital to ensuring that your organizations meets regulatory reporting obligations and manage risks effectively.  This is only possible by having high quality data, which your regulatory intelligence capability should produce by automatically capturing, standardizing and organizing a plethora of regulatory data sources including meta data in a single repository or platform.

The anatomy of regulatory intelligence by data source

I have included a diagram of the different types of regulatory data, in order of importance and value, that is used to generate actionable regulatory intelligence:

Different types of regulatory data

Questions to ask your software provider

If you’re thinking about buying a new regulatory intelligence capability, here is an initial list of questions you should ask your list of potential software providers:

  • Does the vendor automate the collection of regulatory data in near time?
  • Does the vendor capture and link core contextual information to regulatory data?
  • Does the vendor automatically classify regulatory data using algorithms?
  • Does the vendor allow you to reclassify the data on the fly?
  • Does the vendor incorporate regulatory intelligence in downstream compliance activities?
  • Does the vendor provide premium content?
  • Does the vendor have a full reporting suite that can be easily customized?
  • Can the regulatory intelligence be assigned, analyzed, updated and tracked in one place?
  • Can I collaborate with my team (across the world) on this regulatory intelligence?
  • Can the solution be customized without consultants as compliance needs change?

About RequirementONE

Our vision is to provide every compliance organization in the world with actionable and personalized regulatory intelligence – streamed to all decision-makers employees and business systems. The fully managed RequirementONE platform uniquely simplifies compliance by automating the curation and distribution of actionable regulatory intelligence throughout the compliance lifecycle, lowering the cost of compliance management by 50%. To learn more, visit www.requirementone.com