Using RPA to efficiently and effectively meet compliance demands
Meeting legal compliance requirements has become a labor-intensive and costly aspect of doing business in almost all industries. Organizations must navigate a complex matrix of local, state, national, and international regulations, some of which are universal and some of which are industry-specific.
Whether it’s the European Union’s General Data Protection Regulation (GDPR), the U.S. Health Insurance Portability and Accountability Act (HIIPA), or California’s air quality laws, failure to comply with these and hundreds of other regulatory requirements can result in significant fines and reputational damage and lost sales. In short, the cost of non-compliance can quickly outweigh the cost of complying with all relevant regulatory requirements.
For the future, however, there is a likelihood that the regulatory burdens will only increase. This means that compliance-related personnel and business activities threaten to consume an ever larger part of the budget of all companies. Fortunately, there is a common solution that can significantly reduce compliance costs: process automation.
In organizations of all sizes, there are hundreds, probably thousands, of manual processes under the regulatory compliance umbrella. New and changed regulations have to be tracked and analyzed, business processes have to be adapted to new mandates, employees have to be trained about new requirements, reports have to be drawn up and auditors have to be satisfied.
Many of the underlying processes associated with these and other compliance tasks are now largely manual operations. The latest generation of robotic process automation (RPA) platforms and tools can enable companies to automate significant parts of these tasks and serve as a solution to reduce costs, accelerate performance and free up valuable employee time. It is not for nothing that the automation of compliance processes can also reduce errors compared to manual processes and thus significantly reduce the compliance-related risk.
Automation of compliance processes can take many forms, including “attended” automations that still include some elements of human interaction, fully automated or “unattended” tasks, and hybrid combinations of the two. While even simple task automations can provide some business benefits when organizations automate complex workflows that span multiple systems, databases, and departments.
An example of a complex process in the banking sector is mortgage rehabilitation. Regarding the necessary compliance steps:
- Data extraction and preparation – using RPA software robots (bots) that help extract data from various sources and format the data as needed.
- Execution – Here rule-based bots can check account entries, detect errors such as incorrect interest calculations and flag missing data.
- Action – with bots doing everything from filling out general ledger entries to automatically sending information requests or notifications to customers via email.
- Remediation reports – this is where bots can create and publish audit logs for compliance checking and reconciliation.
Some compliance tasks extend horizontally end-to-end across organizations, while others are closely related to specific departments or employee roles. With easy-to-use RPA tools, companies can attract a wide range of employees to identify goals for task automation and even – as discussed in a previous post – automate tasks themselves. The speed and flexibility of RPA tools also means companies can easily adjust their compliance automations as regulations evolve or evolve.
Many UiPath customers have used the company’s RPA platform to automate compliance processes and reduce their compliance burden. See how RPA can help with compliance in the banking and financial services industries, for example.
I based this statement on a section of the banking compliance / mortgage remediation compliance blog post (linked directly below) that said:
In some cases, this is due to banking RPA applications that have limited use, that is, simple process automation with interruptions and handovers to humans.
In order to crack the efficiency of compliance management, the automation of more complex banking processes is necessary.
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