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Deloitte Compliance Event 2018
Achieving the next leap in compliance
On December 6th Deloitte Regulatory Risk hosted a compliance event following the compliance benchmark surveys that were recently conducted amongst financial services and non-financial services clients. During this event, the results of both benchmarks were presented and several external speakers held presentations on trends and recent developments within compliance.
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- Deloitte Compliance Event 2018
- Digitalization and explainable AI
- International and regulatory expectations
- Employee and organisational behaviour
- Looking back, looking forward
Deloitte Compliance Event 2018
On December 6 2018, the fifth edition of Deloitte’s Compliance Event took place. Overlooking Amsterdam from the top floor of The Edge, the results of the Compliance Benchmark Survey were presented. Furthermore, attendees listened to guest speakers addressing recent compliance developments and trends from a variety of perspectives. Interactive breakout sessions were held in which compliance professionals were able to actively engage with their peers as well as with speakers specifically catered to their industry.
This year separate benchmarks were prepared for the financial services industry and respectively the non-financial services industry, which both examine the progression of the compliance landscape and function and paint a picture of how these are expected to evolve in the near future. Both the financial as well as the non-financial sector benchmark reveals that compliance functions experience significantly increasing expectations over the last few years, and continue to
evolve their compliance risk management efforts. Whilst there may be room for improvement when it comes to first line of defence accountability and clear target and performance metrics, the majority of the organisations feel that top and senior management recognize and understand the importance of compliance.
Furthermore, the benchmark results show a strong emphasis on digitalization and application of technological solutions. The potential value in applying technology and data analytics is understood and desired by many compliance functions, yet the implementation of such solutions has not nearly reached its full potential. This may be caused by a lack of budget or knowledge on how to utilize innovative solutions.
Digitalization and explainable AI
The need for technological expertise has increased in many organisations, as emphasised by guest speaker and former artificial intelligence professor Evert Haasdijk who discussed the importance of ‘explainable AI’. Technological solutions such as AI tooling can bring about their own challenges as they can, for example, reflect human biases or misrepresentation. As input data determines the quality of the output data, it is key that organizations start to invest in technological expertise and
understand how technology actually impacts the processes it supports.
International and regulatory expectations
One of the drivers for approaching compliance with smart(er) solutions is the business environment where laws, regulations and expectations continue to increase. During the break-out sessions Anne Scheltema Beduin (Transparency International the Netherlands) provided the non-financial services industry participants with insights into the expectations and trends on combatting corruption internationally, and emphasized the role of organizations from a civil society organisation perspective. In his session for the financial services industry participants, Reinier Pollman (Autoriteit Financiele Markten - AFM) discussed the benefits of multidisciplinary approaches to duty of care, noting how psychological contributions can help prevent certain behaviours of customers.
Employee and organisational behaviour
Ultimately, compliance programmes should assist employees in navigating the business environment in an ethical way. Wies Wagenaar (ABN AMRO) shared some lessons learned and discussed ABN AMRO’s approach to steering and measuring employee behaviour through a combination of soft controls and hard controls. Additionally, she shared some knowledge on how to implement ethics and moral reasoning in day to day business in your organisation. Last but not
least, Thomas Bosch (National Public Prosecutor for Serious Fraud) shared his experiences in dealing with organisations that suffered great consequences following non-compliance. He stressed that compliance beyond its minimal interpretation is a necessity for organisations, and explained how this is taken into consideration as part of prosecution. Furthermore, he emphasized the importance of a learning organisation that regularly reflects on how to further improve.
Looking back, looking forward
In a landscape that is anything but static, compliance functions experience an ongoing diversification of their function. As legal and regulatory requirements and expectations increase, compliance needs to be integrated into the business even more. In order to achieve this, a better grip on technology and smart solutions is required, yet behavioural insights and organisational culture are as relevant as ever. This demands a compliance function that is able to reflect and adapt with the right skill-set to its disposal.
For more information please contact Ellen Huisman or Christiaan Visser via their contact details below.