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How To Strengthen Organizational Learning In Stock Market Compliance?

04 Oct 2017

The stock market is a highly regulated industry. The rules that are in place and the regulatory obligations set for players in the market are quite intense and as such, it’s not a surprise to see that many companies have invested a lot of money in developing the required capacity to operate within the set framework. However, even as more advanced compliance solutions come up, at the core of everything is organizational learning. Compliance is a fairly new concept in the market. The regulations and the risks they are meant to mitigate against are very dynamic. This means that in order to ensure that all noncompliance risks are taken care of, players in the stock market must always reinvent their strategies and respond effectively to changing risks all the time. This cannot be done without a continuous process of organizational learning. Well, here are some tips that can help strengthen organizational learning.

How To Strengthen Organizational Learning In Stock Market Compliance?

Retrospection

Although compliance strategies are designed to be proactive in their nature, retrospection is an essential part of all this. Retrospection is basically looking back at all the things that have been done to strengthen the organization’s capacity to comply with rules and asking whether there are any places where things could have been done better. If you do not understand your weaknesses then it’s not easy to strengthen them. Retrospection of the entire compliance strategy is therefore essential in building a foundation for a stronger more effective compliance strategy in the future.

Training of Staff

This one is a little bit more basic but it’s of course very important. There has to be a continuous investment within the organization to equip staff with the latest knowledge on compliance and the trends in the market. Staff training can be done through a number of ways, you can invite experts in compliance to provide some assistance internally to the compliance team which in turn will spread this expertise to other departments within the organization. You can also facilitate attendance of compliance conferences by your staff and provide an opportunity for them to interact with other compliance teams from other financial services providers. This will help in promoting learning and the adoption of best practices in the industry.

Data Analysis

The risk data that each financial service provider collects is very important in learning. This is the data that helps the institution to know the nature of the business environment they are operating in. In addition to this, institutions must be encouraged to consult widely with the regulatory bodies designed to enforce regulations in the market and ensure that they are always updated on what is needed and the role they must play. If you have a trading monitor, the data that it generates on a day to day basis can also be very helpful in providing learning opportunities.

At the end of the day, learning is designed to strengthen the compliance systems in place. You can visit Trapets anytime to learn more.

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