Deloitte and IBM this week announced the latest step in their longstanding strategic alliance, creating a transformative series of risk management and regulatory compliance solutions.

Significant changes have occurred in the risk landscape in recent years, increasing the regulatory compliance demands placed on financial services organisations and driving the need for enhanced risk management approaches. Firms are facing regulatory, shareholder and public pressure to further enhance governance systems, while increasing transparency, competitiveness and profitability. As a result, financial services firms and regulators alike are revising their expectations how risk is identified and mitigated.

At the same time, significant technological advances in Big Data, analytics, and cognitive computing have taken place, which can generate much deeper insights, faster than ever before. Oganizations, however, have not yet been able to effectively apply all of these capabilities into one solution.

Deloitte and IBM are developing solutions for financial services firms to more efficiently address their immediate compliance and conduct requirements. One of these is a regulatory compliance and control solution that combines Deloitte's regulatory intelligence with advanced technology from IBM.

This new solution will leverage IBM Analytics and cloud capabilities, with plans to incorporate Watson cognitive computing to disaggregate and classify regulations, paragraph by paragraph, helping clients to compare their control framework in direct relation to current and emerging regulatory mandates. It can help to provide a streamlined view across the business, helping to confirm regulatory control coverage, manage remediation and prioritize the efforts of future regulatory change programs.     

Deloitte and IBM have also started to develop the next generation of capabilities for managing risk and regulatory compliance. Moving beyond the use of traditional structured data to leverage unstructured information and external data, the solution will include more predictive capabilities. This can be applied in real-time to help deliver actionable insights, limit exposure and reduce the impact of compliance and conduct issues that arise.

More information on Deloitte and IBM's alliance may be found here.