Financial institutions and other regulated entities face an ever-increasing volume of new and changing regulatory requirements, increasing the cost to maintain regulatory compliance.<\/p>\n
Generative AI models can assist firms across multiple dimensions, including expediting analysis to understand the impact of a new or changed regulation on its business.<\/p>\n
DORA is just one of many regulatory changes\u00a0to contend with. Introduced in response to the rapid digitisation of the financial sector and with an implementation deadline of 17 January 2025, DORA focuses on strengthening the operational resilience of Financial Institutions as the EU aims to ensure the financial sector is able to manage ICT risks and respond effectively to cyber threats.<\/p>\n
As noted in previous blog posts, DORA is not your average lunch time read: it consists of both Primary and Secondary Legislation. The Primary Legislation contains 64 Articles, each comprising sub-paragraphs, many of which interface with Secondary Legislation. The Secondary Legislation also consists of a range of RTS, ITS, Common guidelines and Feasibility reports. Many of the RTS are, in and of themselves, lengthy. Take as an example, the RTS to further harmonise ICT risk management tools, methods, processes and policies – this totals 182 pages.<\/p>\n
How does a firm ensure it has digested and accurately interpreted such a large volume of information and requirements?<\/p>\n
Firms from all industries, are constantly looking for ways to make better use of their resources to boost productivity, manage costs, reduce risks, and achieve competitive advantage. Developments with Generative AI models cannot be ignored, particularly compliance models in need of a refresh:<\/p>\n
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Implementing Generative AI in any environment has its challenges. Among them, a firm needs the resources and expertise to develop and train a model for meaningful results, addressing bias and fairness concerns. Models need to be developed with an awareness of requirements related, and cognisant that a solid data foundation is fundamental to achieve meaningful outputs. The use of Generative AI in tandem with human oversight is the natural evolution in response to the increasing difficulties and associated costs of regulatory compliance.<\/p>\n
Davies has a successful track record, deploying multi-disciplinary teams who bring deep industry experience, to support clients in establishing the required foundational elements to support a compliance model.<\/p>\n","protected":false},"excerpt":{"rendered":"
Partner with Davies and Embrace The Future of Compliance<\/p>\n","protected":false},"featured_media":27775,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false},"practices":[29,33],"industries":[],"capabilities":[104,109,112],"class_list":["post-27774","blog","type-blog","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n