„In 5 years’ time, there will be companies with AI and those without. Those without won’t be around for long, so start today!“
Rüdiger Lang
Partner at Consileon
Tel.: +49 160 7470099
Ruediger.Lang@consileon.de
Organisations face the challenge of understanding a multitude of regulatory changes, assessing their impact and modifying internal processes.
The Regulatory Radar helps to fulfil complex compliance requirements by taking over the manual document review, uncovering compliance gaps and suggesting concrete measures. This reduces the error rate and frees up valuable resources.
The AI tool was developed in collaboration with Professor Jan Pieter Krahnen, an expert in corporate finance and financial market regulation.
Based on the company’s key data, the Regulatory Radar determines which DORA regulations are applicable in the specific case. The system’s artificial intelligence compares the client’s ‘Schriftlich fixierte Ordnung’ (SfO), a description of the company’s structures, processes and IT systems, with the relevant DORA rules, recognises any compliance gaps and proposes measures to close these gaps. On request, the system prepares the comparison into documentation that the user’s IT team can process quickly.
With just a few clicks, the Regulatory Radar generates management or status reports that help the financial organisation to meet its reporting and notification obligations to regulatory authorities such as the German Federal Financial Supervisory Authority (BaFin).
DORA obliges financial organisations to comprehensively review their cooperation with external IT service providers. The Regulatory Radar analyses the contract portfolio for compliance with the regulation and identifies options for closing any gaps.
A chatbot answers all questions about DORA, including highly specific and complex ones. The answers link to the relevant sections of the regulation text.
The Regulatory Radar obtains its knowledge from the wording of the regulation, explanations from official sources and quality-assured interpretations. This is supplemented by the client’s internal documents.
A compliance specialist from a German insurance company subjected the chatbot to an extensive stress test. The chatbot passed the test with flying colours.
The Regulatory Radar concentrates on highly formalised, schematic and monotonous tasks, reducing the need for personnel and significantly speeding up processes. Specialist staff are relieved of routine tasks and can concentrate on strategic and value-adding activities. The company also saves on external services. The high degree of automation helps to avoid errors that are difficult to recognise and potentially costly.
Human control remains essential: the human always has the last word, monitors the output of the machine and makes any necessary corrections and additions.
The Lighthouz AI software is integrated for quality assurance, ensuring consistently high quality and reproducibility of the answers.
The potential benefits of an AI tool such as the Regulatory Radar are far from exhausted with the establishment of DORA compliance. Other regulations await their application in financial and real companies, including the EU AI Act, GDPR, MaRisk, NIS-2, CSRD, the EU taxonomy and FATCA. Future versions of the Regulatory Radar will gradually cover these areas of application.
„In 5 years’ time, there will be companies with AI and those without. Those without won’t be around for long, so start today!“
Rüdiger Lang
Partner at Consileon
Tel.: +49 160 7470099
Ruediger.Lang@consileon.de
Professor (emeritus) Krahnen was significantly involved in the development of the SAFE Regulatory Radar at the Leibniz Institute for Financial Market Research. As an advisory board member and scientific advisor, he is now also supporting Consileon with this experience in the development of the AI Regulatory Radar.
Prof. (em.) Jan Krahnen
Advisory Board
Jan.Krahnen@consileon.de
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