Razzak Jallow is the CFO of pre-IPO fintech company FloQast.
Automation technology in compliance is paving the way for a transformative approach to risk. Organizations that fully embrace compliance automation can shift from merely identifying and mitigating risk to leveraging it to their strategic advantage. Achieving this level of sophistication calls for a nuanced, intentional relationship between compliance professionals and the tools they use.
Broadly, these relationships fall into three categories: adversarial, routine and synergistic. Each reflects a unique dynamic between compliance professionals and their tools, affecting how effectively risks are identified, managed and, ideally, transformed into strategic opportunities. These dynamics aren’t merely shaped by the tools themselves but are heavily influenced by how organizations integrate these technologies into the compliance function. When the right balance is struck, compliance technology not only fulfills the basic tasks of identifying and controlling risk but also enables teams to approach risk with creativity and strategic vision.
Technology As An Adversary
In some cases, technology can feel more like an adversary than an ally. Compliance teams in these scenarios often grapple with redundant processes and systems that do not align with the team’s broader strategic goals. Here, the technology may be functional but doesn’t integrate seamlessly with the more nuanced, analytical work required to manage complex risks.
This adversarial relationship typically arises when compliance technology isn’t designed with the organization’s guiding principles in mind or when it is adopted without a clear understanding of how it will function within the compliance framework. The result? A tool that is either ineffective or even counterproductive, leaving compliance professionals feeling hindered rather than supported. They may spend more time manipulating technology to align with their needs than actively managing risk. This misalignment impedes their ability to fulfill the compliance role’s more strategic aspects and can lead to compliance feeling like an isolated, check-the-box exercise rather than an integrated, value-generating function.
Technology As A Routine Utility
A more common relationship is a routine one, where the technology performs adequately but does little beyond handling basic compliance tasks. In this scenario, the technology may automate routine processes, lightening the load of repetitive work. However, it falls short in supporting higher-level strategic decision making. In short, it is functional but limited.
Compliance work, however, is anything but basic; it requires critical thinking, adaptability and innovative problem-solving. When the technology remains a mere utility, compliance professionals must rely on their own creativity and expertise to fill the gap, pushing the technology beyond its intended functions. Although the tools remain essential, they are not perceived as true partners in navigating complex risk landscapes or in achieving the organization’s strategic goals. The compliance team may meet baseline regulatory requirements, but the organization misses out on the potential for a truly strategic approach to risk.
Synergy In Action: Compliance Technology As A Strategic Partner
At the highest level, a synergistic relationship with compliance technology represents an ideal balance. Here, technology does more than automate. It actively supports the compliance team’s strategic goals and becomes an extension of their capabilities. This synergy enables compliance teams to go beyond merely managing risk, allowing them to differentiate between risks worth taking and those best avoided.
With a synergistic relationship, compliance technology enables professionals to intelligently assess, control and leverage risk, turning it into a strategic asset. Compliance teams empowered with this level of technology have the freedom to focus on understanding the nuances of risk and can adapt their approaches dynamically. The tools enhance their ability to orchestrate risk as a positive force within the organization, effectively amplifying the team’s expertise and aligning it with strategic objectives.
Compliance is part of the larger accounting journey, and by supporting it as much as possible, organizations can create a synergistic approach that ultimately empowers compliance to function as the critical piece that it is. Unfortunately, many compliance tools on the market today are focused primarily on risk mitigation, limiting compliance teams’ potential to fully realize this synergistic advantage.
Achieving Synergy: The Role Of Intentional Technology Selection
Organizations striving to orchestrate risk effectively need to invest in technology that transcends basic functions and fosters a synergistic relationship with compliance teams. Many tools foster adversarial or routine relationships, which emphasize compliance as a reactive process rather than a strategic one. Organizations seeking to shift from risk mitigation to risk management should look for solutions that enable compliance teams to navigate risks, not just control them.
The search for such technology should emphasize flexibility, intelligence and adaptability, allowing compliance teams to evolve their approach as risks shift. By moving away from tools that solely focus on mitigation, organizations can adopt a broader risk management mindset—one that reframes risk as an opportunity rather than a threat. This mindset fosters a dynamic approach to compliance, enabling organizations to approach compliance with strategic foresight, where risks are orchestrated to support overarching goals rather than avoided at all costs.
Transforming Compliance Into A Strategic Advantage
Automation technology is indeed the future of compliance, but its value lies in the relationships organizations cultivate with it. A synergistic relationship transforms compliance technology from a mere tool into a strategic ally, allowing organizations to move beyond routine tasks and elevate their approach to risk. With the right mindset and technology that goes beyond risk mitigation, compliance teams can focus on orchestrating risk to advance organizational goals, position compliance as a critical component of the broader accounting journey and build a resilient, forward-thinking culture.
In this transformed approach, compliance is no longer a separate or reactive function; it’s a dynamic, integrated element of the organization’s strategic vision. Embracing the potential for synergy in compliance technology not only meets today’s regulatory requirements but also equips organizations to navigate and capitalize on tomorrow’s uncertainties with confidence.
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