Buried Alive in Contracts?  How to Unlock Future Savings with  Contract Discovery and Analytics

 

THE PROBLEM

In the post-2008 financial crisis environment, regulators often require financial institutions to report accurate data about their operations and exposures. Institutions must produce reliable information reasonably quickly, which requires both access to the information and a means to extract pertinent data.

 

Picture this: during a routine regulatory examination, a global investment bank receives an urgent request from its regulator to provide information about systemic risk inherent in its derivatives contracts, including how many contracts have third party guarantors.

Or perhaps this: a project team spends six months revising IT platforms to include data from legal agreements, only to have the regulator bring another uncovered product in scope at the last minute.

These common occurrences are requiring us to rethink how we face regulatory inquiries and emerging market events.

Per current de rigueur, most institutions would pull a data extract from whatever systems exist, lining up the data like apples to oranges and hiring human capital – overseas or elsewhere – to review the contracts…. again…for the new required data. This approach is costly, inefficient, and often disorganized. And the whole time, regulators are waiting, wondering why this request was not answered instantaneously….

New technology, particularly Contract Discovery and Analytics software, provides numerous benefits over the current approach. As a regulatory change solutions company who is often hired to clean these messes up, we at 8of9 have everything to gain from this inefficient process. But instead, we’re going to give you some reasons why the financial services industry should NOT hire us (or anyone for that matter) to review contracts manually without a solid software partner to assist.

 

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