Technologies of Compliance: Risk and Regulation in a Digital Age

Categories : RegTech, Regulation of Digital Financial Services


Author: Sarah Corley

Legal scholarship has been silent about a phenomenon with profound implications for governance: the automation of compliance with laws mandating risk management. Regulations and laws have required firms to develop processes to identify, assess and mitigate risk, and technology systems and analytics have been brought in to achieve this. While these technology systems offer powerful compliance tools, they also pose risks, such as automation bias and lack of transparency. This paper explores these developments and risks, concluding with ideas to minimise risk.