The financial compliance dilemma: The GDPR and more
The rapid pace of change impacting modern finance departments is seeing innovation, such as automation and artificial intelligence, enter a traditionally analogue business unit. Coupled with a shifting regulatory landscape, maintaining compliance in line with technology innovation can represent a challenge as businesses look to increase the pace of digital change.
In the finance world, compliance has traditionally focused on internal policy and prescribed processes, with businesses putting pragmatic controls in place to ensure that spending decisions are in the best interest of their organisation. Today however, there are an increasing number of external influences that present further regulatory compliance considerations. Whether it’s the recent introduction of the General Data Protection Regulation (GDPR), or other laws on bribery, modern slavery or the duty to report payment terms, there are a growing number of compliance considerations that procurement and finance departments need to consider.
The challenge for finance teams everywhere is that new, digital legislative changes like GDPR have been introduced into a working environment which still frequently relies on traditional, paper-based methods of workflows. In fact, 66% of finance professionals say they are more paper-reliant than any other business function.
But whether a finance department is fully automated or falling behind the digital transformation curve, the efficient procurement of goods and services is integral to the running of any business. As such, legislative compliance cannot, and should not, hinder the process. It should simply safeguard the way procurement is carried out, adding robustness to the process and ensuring security for all parties involved.