Automating complex regulatory reporting with Robusta

Neil Williams  |  December 19, 2022

There are several ways to automate complex regulatory reporting, depending on the specific requirements and constraints of your organization. Here are some general approaches that you might consider:

1. Use a specialized regulatory reporting software: There are many software tools available that are specifically designed to help organizations automate regulatory reporting. These tools often come with pre-built templates and workflows for common regulatory reporting requirements, and may also include features such as data validation and audit trails to help ensure compliance.
2. Use a data management platform: A data management platform (DMP) is a software tool that helps organizations collect, process, and analyze data from multiple sources. Many DMPs have features that can be used to automate regulatory reporting, such as data transformation and integration capabilities, and may also offer pre-built templates and workflows for common regulatory reporting requirements.
3. Use a business process management (BPM) tool: A BPM tool is a software tool that helps organizations automate and optimize business processes. Some BPM tools have features that can be used to automate regulatory reporting, such as data integration and process automation capabilities.
4. Use a combination of the above approaches: Depending on your specific needs, it may be useful to combine multiple approaches in order to automate complex regulatory reporting. For example, you might use a regulatory reporting software to handle certain aspects of the process, and a BPM tool to handle other aspects.

Regardless of the approach you take, it is important to carefully plan and test your automation strategy to ensure that it meets all relevant regulatory requirements and functions as intended. It may also be helpful to consult with regulatory experts or legal counsel to ensure that your automation strategy is compliant and effective.

The pain of manual reporting

There are several disadvantages to creating complex regulatory reporting manually:

1. Time-consuming: Complex regulatory reporting often involves collecting and analyzing large amounts of data from multiple sources, which can be very time-consuming if done manually.
2. Prone to errors: When done manually, complex regulatory reporting is prone to errors due to the sheer volume of data that needs to be processed and the many steps involved in the process. These errors can lead to costly fines or other penalties if the reporting is not accurate.
3. Lack of efficiency: Manual regulatory reporting is often inefficient, as it requires a lot of manual effort and may not be able to take advantage of automation or other efficiencies that could be achieved through the use of specialized software or other tools.
4. Limited flexibility: Manual regulatory reporting can be inflexible, as it may not be able to easily adapt to changing regulatory requirements or other dynamic factors.

Overall, manual regulatory reporting can be a resource-intensive and error-prone process that can hinder an organization’s ability to effectively meet its regulatory obligations. Automating complex regulatory reporting can help alleviate these challenges and improve the efficiency and accuracy of the process.

## A general approach to automation

Here is a general outline of a project plan for automating a complex regulatory reporting workflow:

1. Define the project scope and objectives: Clearly define the goals of the project and what aspects of the regulatory reporting process will be automated. This will help ensure that the project stays focused and on track.
2. Identify stakeholders: Identify all the stakeholders in the regulatory reporting process, including the individuals or teams responsible for generating the reports, as well as any external parties that may be involved.
3. Assess current processes: Review the current regulatory reporting process to identify areas where automation could be beneficial. This may involve analyzing data sources, data flows, and the various steps involved in generating the reports.
4. Identify automation opportunities: Based on the assessment of the current processes, identify specific areas where automation could be implemented. This may involve integrating data from multiple sources, automating data transformation and validation, or streamlining workflows.
5. Select automation tools: Research and evaluate automation tools that are suitable for the specific needs of the project. This may include specialized regulatory reporting software, data management platforms, business process management tools, or a combination of these.
6. Plan and design the automation solution: Develop a detailed plan for implementing the automation solution, including timelines, budgets, and resource requirements. This may involve designing custom templates and workflows, integrating with existing systems, and testing the solution to ensure it meets all relevant regulatory requirements.
7. Implement and test the automation solution: Implement the automation solution, including any necessary integration with existing systems and processes. Thoroughly test the solution to ensure it is functioning as intended and meets all regulatory requirements.
8. Roll out the automation solution: Roll out the automation solution to the relevant stakeholders and provide training as needed. Monitor the solution to ensure it is functioning as intended and address any issues that arise.
9. Review and optimize the automation solution: Regularly review the automation solution to identify areas for optimization and make improvements as needed. This may involve adding new features, refining existing ones, or making changes based on feedback from stakeholders.

Specialist regulatory reporting software

Specialized regulatory reporting software is designed to help organizations automate the process of generating regulatory reports. Robusta from Tilix AI is an example of this type of software. It’s key features include:

1. Pre-built templates and workflows: Many regulatory reporting software tools come with pre-built templates and workflows that are specifically designed to meet common regulatory reporting requirements. This can help organizations quickly and easily generate compliant reports.
2. Data integration and transformation: Regulatory reporting often involves collecting and processing data from multiple sources. Specialized software tools may have features that enable users to easily integrate and transform data from different sources in order to generate reports.
3. Data validation: Regulatory reporting often requires that data be accurate and complete. Specialized software tools may include features that help users validate data to ensure compliance with regulatory requirements.
4. Audit trails: Regulatory reporting often requires organizations to maintain an audit trail of the data and processes involved in generating reports. Specialized software tools may include features that help organizations track and document their regulatory reporting processes.
5. Customization: Some specialized regulatory reporting software tools allow users to customize templates and workflows to meet the specific needs of their organization.

Overall, Robusta from Tilix AI is designed to help organizations automate the process of generating regulatory reports, while ensuring compliance and minimizing the risk of errors.

Ofgem’s financial resilience RFIs

Robusta from Tilix AI was born from the need to give a licensed supplier of electricity quick access to accurate data, and the comprehensive, real-time picture they needed to continuously monitor that they were on track to meet Ofgem’s regulatory regime which emerged after recent events in the energy market which exposed that retail businesses have too often had insufficient capital to manage the business of supply and pursued unsustainable strategies with low downside risk to investors.

Suppliers without sufficient capital and sustainable business models are vulnerable to market shocks, making them more susceptible to failure. They are also more likely to pursue excessively risky strategies because they are less reliant on investor capital. Under present market conditions, the costs of failures borne by customers have far exceeded the costs of refunding the credit balances and RO receipts of individual suppliers. This can give rise to very poor outcomes for consumers and systemic risks to the retail supply market, even in circumstances where the majority of suppliers do not rely on such unsustainable business models.