Innovation in Compliance with Tom Fox A Digital Transformation to Compliance with Evgeny Likhoded
Evgeny Likhoded is the founder and CEO of ClauseMatch, a company that provides financial institutions with a modern AI-based compliance platform to transform their regulatory change management process. Tom Fox welcomes him to this week’s show to talk about ClauseMatch, how it helps its clients, and the evolution of compliance.
Digital Transformation: The Core of ClauseMatch
Bringing digital transformation to governance risk and compliance is at the core of the ClauseMatch platform. What ClauseMatch has built is a way for companies to collaborate in real-time on content, specifically content that needs strict and strong governance processes. "Primarily our platform is used for managing policies and procedures in a way that enables companies to track every single change every time the policy changes," Evgeny tells Tom. Ultimately it helps clients show their regulators that they have interpreted and incorporated the rules into their own internal governance frameworks, and have communicated that to their employees.
The Evolution of Compliance
Evgeny cautions that it's not enough to have a compliance manual just sitting around. Compliance regulations and objectives need to be distributed and have engagement with the entire organization. A large part of ClauseMatch's roadmap is driven by customer challenges, and how they might be addressed and another part is driven by the market. "There are a lot of things that we see on the market that will drive the adoption of compliance solutions," Evgeny says. Regulated firms won't be the only ones affected by the changes happening in the market. "Privacy regulations aren't just for regulated firms," he adds. Every firm that is holding some form of data for its clients and customers is subject to these regulations. This, along with a greater emphasis on ESG are two prime examples on how compliance has evolved for companies.
Smart and Connected Compliance
Tom asks Evgeny to define smart and connected compliance. Connected compliance is the ability to understand and connect compliance content that comes from many different sources. This means the obligations, procedures, and policies that come from various regulators. "We need to rewrite the policies and procedures we need to make sure that their controls are still compliant with the regulations and obligations, and if they're not connected you can never estimate the full impact of that," Evgeny explains. Smart compliance is where individuals can start using machine learning and natural language to understand these connecting links across the organization.
Looking Ahead
Tom asks Evgeny what key trends will shape compliance technology in the future. Evgeny explains that the need for compliance technology will only increase during 2022 and onward. New regulations will be introduced for cryptocurrency activities and assets, as well as various regulatory frameworks with ESG. Cybersecurity will have a lot more scrutiny from regulators and governments as well.
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