Extracting risk intelligence directly from all regulatory notices and enforcement actions then categorising for global comparison to make the data relevant to any financial institution.

This development follows the successful taxonomy management programme Corlytics has undertaken for several financial organisations, including the Financial Conduct Authority (FCA). Corlytics worked with the regulator to develop the world’s first intelligent handbook using its Regulatory Taxonomy Management Solution. Helping to transform the FCA handbook from a legal document into a fully searchable database with over 3,000 metadata tags.

This same technology is now accessible to all financial institutions so that they can organise all regulatory information and data right through the organisation into a single set of normalised taxonomies. This single ‘golden’ source taxonomy is useful across the firm for the collection and aggregation of regulatory data. Enabling it to be connected to firm data including policies, standards procedures and controls.

Corlytics Regulatory Taxonomy Management Solution uses a combination of artificial and human intelligence to categorise and organise regulatory notices and when required, internal firm data, into highly structured relevant information. Taking unstructured data and converting into uniform data for risk analysis.
The Taxonomy Management Solution also makes it possible for enterprise systems that need regulatory information, such as risk systems, to derive intelligence from this ‘single format’. Thus, eliminating the duplication of effort and diverging taxonomies within an organisation, which can be one root cause of regulatory failure within firms and is of itself a risk factor.

Mapping taxonomies and knitting them together across the entire firm

Managing regulatory paperwork is a never-ending task. As regulations change, firms are expected to be aware of each revised obligation, perform an impact assessment and implement change. This process is lengthy and labour-intensive.

Corlytics Regulatory Taxonomy Management Solution enables firms to streamline their response to regulatory change through an automated approach. Translating regulatory change directly into business impact.

Regulatory change and risk impact

Identifying regulatory change alone is not sufficient. Senior management needs to understand where the possible regulatory pitfalls lie. Corlytics enables risk impact assessments through real-time analysis of regulatory actions happening across the industry that are also connected via a normalised taxomony.

Kevin O’Leary, VP of product management at Corlytics explains, “The solution to all regulatory change and impact assessment issues are a connected or normalised taxonomy. Corlytics’ credentials creating regulators taxonomies globally and across regulators are unparalleled. Our capabilities combine powerful legal expertise with technology to measure, predict and calculate regulatory outcomes and impact. Aligning internal, often proprietary systems, with our Taxonomy Management Solution provides firms with evidence in real time. It enables our partners to optimise investment in compliance and risk management using a risk based prioritised approach.”

John Byrne, CEO of Corlytics explains the depth of intelligence already held by the company, “Every time a regulator communicates to the market or publishes a document, we break that information down. Classifying it’s industry impact and adding it to our intelligence. Speeches, industry guidance, thematic reviews and business plans all yield insight into regulatory intent. Combined with our global enforcements analysis, we can offer a single end-to-end source of regulatory assessment risk of regulatory change information.”