Horizon scanning is a method of predicting a potential change by noting the early signs of upcoming events. The ability to foresee certain developments helps organisations prepare an action plan to maximise opportunities or avoid potential threats.
The horizon scanning process can be different for every company, but it involves close inspection of emerging trends, spotting signals and understanding developing methods. When done accurately, it can provide organisations with a competitive advantage.
How Does Horizon Scanning Help in the Financial Industry?
Horizon scanning can give financial institutions an edge by determining how potential events may influence their daily operations, finances, and reputation.
Tracking Regulatory Requirements
Regulatory requirements play a vital role in financial institutions’ day-to-day activities. These organisations must follow all local, national and global regulations because their daily processes depend on complying with existing laws.
By following and tracking new regulatory requirements, horizon scanning can help companies gain insight into regulatory systems changes and how they affect their daily operations. By anticipating upcoming changes, companies can react quickly and adjust appropriately.
Certain regulatory changes might bring technological developments, so institutions need to find software solutions to comply. Others may bring changes to products, so it is crucial to foresee the changes. This can give them time to restructure product development or design new technologies.
Monitoring Possible Risks
Horizon scanning can help identify emerging risks and assist companies in taking action against future threats to their work and employees. Constant monitoring of news, information and events can pinpoint possible emergencies so financial institutions can prepare better and take action where necessary.
A distinctive feature of the horizon scanning process in risk assessment is the use of news as a source of information. Regular risk assessment does not involve data from third parties, whereas here, the news is taken seriously as a harbinger of shifting trends and potential risks for the financial sector.
Horizon scanning techniques get an overview across the whole company, allowing it to make a risk assessment and develop a plan of action for specific threats.
FinregE: Regulatory Horizon Scanning
The horizon scanning process in the financial industry can bring plenty of benefits. At FinregE, we have designed a solution that provides alerts on regulatory developments in real-time to make sure you never miss an update.
Contact us today and book a demo to get to know our platform and how we can simplify processes for you.