- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-12-30T21:00:00
Launching or expanding a corporate data analytics program for compliance can seem like a daunting task, but it is one worth adding to your to-do list in 2025.
Using data analytics can transform the effectiveness of your compliance function. Done right, data analytics can reduce the time your team spends monitoring transactions, freeing up your team to spend more time evaluating and mitigating difficult issues. It also allows compliance teams to recognize, assess, and mitigate emerging risks, while also recognizing patterns in data that human analysts overlooked.
More and more, regulators are expecting companies to use data analytics to aid in decision-making and to make compliance more effective and efficient. The Department of Justice’s Evaluation of Corporate Compliance Programs (ECCP) says prosecutors expect companies to assess the effectiveness of their compliance programs using data analytics.
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Regulations are sure to be rolled back under President Donald Trump, but the question is which regulations, and how much? Is your organization as prepared to respond when regulations are loosened as it was when they were tightened?
Former Albemarle CCO Andrew McBride explained at Compliance Week’s 2024 National Conference how he led the company’s compliance department to remediate the issues that led to apparent FCPA violations and how the team used data analytics to assess risks and implement compliance solutions.
The Department of Justice is upping its game regarding its use of data analytics to identify potential misconduct, and it expects companies to be doing the same.
Data governance has become a key concern for companies, especially when the EU AI Act and General Data Protection Regulation have put a premium on handling data responsibly and ensuring that artificial intelligence does not cause harm.
The era of artificial intelligence adoption is testing the old ways of doing compliance, underscoring the need for continuous monitoring. Compliance isn’t a one-and-done activity, but sometimes organizational incentives and goals fail to prioritize the importance of this.
While companies are exploring and building artificial intelligence technology, lawmakers and regulators are trying to identify what ground rules they need to set. These guardrails are what companies and governments alike believe are essential parts of ensuring safe and responsible use of the technology.
