Case: Regulatory Adherence Control

A European bank was looking to improve its level of comfort over its regulatory adherence. Regulatory queries and reviews often bring up unpleasant surprises as they would show that there are omissions in regulatory interpretations, translations and implementations. To be able to have comfort over being regulatory compliant and being able to answer how regulations have been adhered to, the bank is looking for a smarter way to capture how it adheres to rules and regulations.

Together with the client we performed a pilot during the implementation of a selected new regulation. For the pilot we used our regulatory knowledge platform (Fimantic). The information that was created throughout the regulatory implementation project was converted from text to be captured in a structured manner according to our regulatory adherence data model.

Instead of capturing the interpretation, translation, implementation and control of the requirements in a textual format, we captured this in a data (structured) format according to predefined data components as defined in our Semantic Regulatory Data Model.

This involved digitizing the regulatory texts into structured data according to our regulatory data model. Subsequently, we used our beta version of the browser-based user interface to map the regulatory components to the situation of the bank.

The way that not only the data but also the 'meaning' of the (relation between the) data is captured in the Semantic Regulatory Data Model makes that a computer can reason the regulatory adherence of the bank for each specific situation (i.e. business line/product/service).

By accessing the structured data in the regulatory data model, a computer reasoning engine can connect all available data points and reason how regulatory adherence is achieved (or identify gaps). This digital approach allows for instant analytics, gap analysis, progress reports, dashboards and action allocation.

Now, instead of performing lengthy investigations, the client can instantly query how it has interpreted a regulation, how it has translated rules to each product and service and how the implementation covers all that is required.