Regtech Adoption Practice Guide: Governance, Risk and Compliance

Our Ref: B1/15C

27 September 2021 The Chief Executive All Authorized Institutions Dear Sir/Madam, Regtech Adoption Practice Guide I am writing to share with the industry the third issue of the Regtech Adoption Practice Guide. This issue focuses on Regtech solutions in the space of “Governance, Risk and Compliance” (GRC). An evolving risk and regulatory landscape, coupled with a growing need to balance costs and effectiveness, is driving banks to adopt GRC Regtech solutions. GRC is a framework of people, processes and technologies to gather and aggregate risk information across an organisation to enable timely management attention and action. This practice guide introduces a modular approach to building a GRC Regtech platform and outlines some key implementation components based on observations of what others have successfully done. These include maturity analysis, GRC vision, project governance and IT change control, and process change management. Successful implementation of GRC Regtech solutions require firm-wide support for digital transformation. If your institution has any questions regarding Regtech or any feedback on this Regtech Adoption Practice Guide series, please feel free to contact Mr Ken Wong on 2878-1469 or Ms Angel Chan on 2878-1268. Yours faithfully, Raymond Chan Executive Director (Banking Supervision) Encl