The Top Challenges of Monitoring

Regulatory Risk in 2022

A S U R V E Y O F L E A D I N G U . S . R I S K M A N A G E M E N T A N D R E G T E C H C O M PA N I E S

©2022 Webz.io
Table of Contents
▶ Introduction and Key Findings 3
▶ Web Data Survey Results 7
Tracking Regulatory Compliance, 2022-2023 8
Plans to Change Regulatory Tracking Vendor 9
Regulatory Tracking Services Budget, 2022 vs. 2021 10
Importance of Tracking Changing Regulations 11
Top Challenge When Monitoring Regulatory Risk 12
Resources Spent on Monitoring Regulatory Compliance Risks 13
Time Spent on Tracking Regulatory Risks, 2022 vs. 2021 14
Expectance of Volume Increase of Regulatory Information Published by Regulators 15
Integration of Regulatory Tracking Technologies in Workflows 16
Top Factor Preventing Workflow Integration of Regulatory Tracking Services 17
Top Factor Preventing Workflow Integration of Regulatory Tracking Services by Industry 18
▶ Demographics 19
▶ About Company 22

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Introduction and
Key Findings
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Introduction & Risk management and RegTech companies today sit at a critical juncture in terms of their data processes. They recognize the importance of
collecting, tracking, and monitoring regulatory data to stay on top of regulatory responsibilities for themselves and their clients. There is no

Methodology
doubt that this data is absolutely critical. But gathering it has become an uphill battle, with the volume of regulations growing every year.
Current solutions fall short and fail to meet today’s business demands for efficiency, quality, and functionality.

In many ways, the technology that collects and structures regulatory data effectively is still in the educational phase, and many businesses don’t
realize what’s available on the market. Companies are still using manual processes for large swathes of their data management and monitoring,
and many are also building in-house solutions or data monitoring systems, despite a lack of technical expertise and the high costs involved.

As global regulations grow in both volume
and complexity, organizations have more
risk to manage than ever before. Failing
to manage compliance risk can have a
dramatic impact on a company’s financial
stability, operations and reputation.
To get a true picture of where the industry is, and the main challenges customers are facing, this survey asks critical questions around the
monitoring and tracking of regulatory data on the web. We asked respondents how satisfied they are with their third-party solutions, what
challenges they are currently facing in this essential area, and how they are adapting budgets and processes to fill the gaps.
The results highlight data processes on the cusp of change. Risk management and RegTech companies are ready to switch vendors to improve
the way they track regulatory data, looking for better support with elements such as time to value and the quality of their data. But with
budgets high and knowledge of adequate solutions still in its infancy, education will be paramount to allow companies to move the needle on
regulatory risk.

Methodology
We commissioned a survey of 120 stakeholders working at companies developing software in GRC, RegTech, Regulatory Risk Management and Regulatory Intelligence.

This report was administered online by Global Surveyz Research, a global research firm. The survey is based on Directors, VPs and C-level roles in Product from the US, from company sizes
of more than 100 employees. The respondents were recruited through a global B2B research panel, invited via email to complete the survey, with all responses collected during March -
April 2022. The average amount of time spent on the survey was 05 minutes and 42 seconds. The answers to the majority of the non-numerical questions were randomized, in order to
prevent order bias in the answers.

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 Introduction & Methodology (1/2)
▶ 85% of companies have problems
monitoring regulatory risk
Just 15% of companies say that they have no
challenges when it comes to monitoring regulatory
changes. The top challenges are the time it takes to
monitor changes (35%), collecting relevant, quality
data (30%), and tracking data quickly without a lag
(15%). These are challenges that could be solved by
moving from manual to automated processes –
and yet only a third of respondents say they are
currently tracking regulatory compliance manually.
▶ 76% of companies to make plans
to switch vendors
With so many challenges, it comes as no surprise
that 76% of respondents are on the market for a
new vendor for regulatory tracking. This is split
between some who rely on third-party products,
and others who currently have a hybrid solution.
31% plan to make this switch in 2022, 36% have it
on the roadmap for 2023, and 33% would like to
change vendors now – but don’t know exactly
when it will happen. This may explain why in 2022,
we expect the use of manual tracking to swell to
51% but drop sharply to 17% by 2023.
▶ 68% of companies will track regulatory
changes manually by 2023
At the moment, a huge amount of time is being
wasted manually working on regulatory tracking, 40
hours per month, spread across 13 people. The
challenge is growing, with 50% of respondents
expecting to spend more time on regulatory tracking
in 2022 than they did in 2021. It’s clear that
companies are not getting what they need from their
vendors. In addition, 63% of respondents believe the
volume of regulatory information published by
regulators to grow or remain the same in 2022,
making this problem an even greater concern.
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 Introduction & Methodology (2/2)

▶ 86% of companies are increasing their budget for

regulatory tracking in 2022

To solve these problems, 86% of companies are channeling more investment into this key area of the business.
Currently, 84% are manually tracking regulatory changes – perhaps because their vendors are not meeting their
needs adequately. Building in-house is not the solution, as 53% of companies say they have insufficient technical
support. Instead, especially in areas like risk management, 29% of which have low knowledge about regulatory
tracking solutions, research and education needs to be channeled into the benefits of third-party providers who
offer smarter solutions.

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Web Data Survey
Results
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Tracking Regulatory
Compliance Using only 3rd-party/external regulatory
web data 42% 58%

2022-2023
Using an in-house automatic tracking
system we built 38% 62%

Hybrid (In-house + 3rd-party/external

regulatory tracking systems) 35% 65%
Of those tracking regulatory compliance today, only 33% do so
manually. The most common method to track regulatory
compliance is by using 3rd-party/external regulatory web data Manually in-house 33% 68%
(42%), followed by using an in-house automatic tracking system
(38%) and then a hybrid approach of using an in-house
tracking system and a 3rd-party approach together (35%). Will use by Q4 '22 Will use in '23
51% 17%
In 2022, the use of manual tracking is expected to grow to 51%, Using today
but then drop sharply to 17% by 2023. Will use in next 18 months

*Percentages do not add up to 100% due to rounding up of numbers Figure 1 Tracking Regulatory Compliance, 2022-2023

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Plans to Change No, we're
No, but we
should

Regulatory Tracking
happy with 8%
what we have
16%

Vendor
Plan to change
regulatory trakcing
vendor 76%

In 2022
76% of companies have plans to change their regulatory
31%
tracking vendor. They are split into almost three equal groups,
those planning to switch in 2022 (31%), those planning to
change vendor in 2023 (36%), and those that will change, but
don’t have a clear idea of when (33%). Yes, but don’t
know when
33%

In 2023
36%

*Percentages do not add up to 100% due to rounding up of numbers Figure 2 Plans to Change Regulatory Tracking Vendor

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Regulatory Tracking
Services Budget, Weighted average: 27%

2022 vs. 2021 86%

% of companies
86% of survey respondents predict that their budget 35%
for regulatory tracking services will increase
28%

Companies seem to recognize the importance of investing in 23%

the right solutions, even if that means growing their budget to
meet that need.
11%
On average, those planning to increase their budget, will 3%
increase it by 27% in 2022 compared to 2021. There is clearly
an opportunity for companies to step in and meet the growing Increase by Increase by Increase by No increase Decrease
1-20% 21-50% 50%+
need for better regulatory tracking.

Figure 3: Regulatory Tracking Services Budget, 2022 vs. 2021

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Importance of Tracking
Changing Regulations Low priority
10% High priority
58%

Highest
priority
13%

58% of companies indicated that tracking changing regulations

is a high priority for their company. A further 33% call this a
medium priority, leaving just 10% putting this essential task at
low priority. Medium priority
33%
High priority
44%

Figure 4: Importance of Tracking Changing Regulations

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Top Challenge When
Monitoring The timeThe timeon
I spend I spend on monitoring
monitoring
changes
regulatory
regulatory changes
35%

Regulatory Risk
Collecting
Collecting relevant
relevant regulatory
regulatory data
data 30%

85% of companies admitted they have challenges

when it comes to monitoring regulatory risk
Tracking
Tracking new regulatory
new regulatory data asdata
soonasas
they’re published 15%
soon as they’re published
The top challenge is the time spent on monitoring regulatory
changes (35%). This is followed by collecting relevant regulatory
data (30%) and tracking new regulatory data as soon as it has Something
Something else
else 5%
been published (15%).
The race is on to create better regulatory compliance risk
management solutions, and the companies that are able to We
We have
have nono challenges
challenges monitoring
monitoring
regulatory risk 15%
improve the quality of their data and get accurate and timely regulatory risk

data as soon as it’s published will be the stand-out winners.

Figure 5: Top Challenge When Monitoring Regulatory Risk

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 Weighted average: 13 people

Resources Spent in 43%

% of companies
Monitoring Regulatory 32%

Compliance Risks
25%

1-10 people 11-20 people 21+ people

On average, 13 people are monitoring regulatory
compliance in a company, and they spend about 40 Figure 6: Number of People Monitoring Regulatory Compliance

hours per month on this task

It adds up to roughly 7.1 hours per person, per month. Weighted average: 40 hours per month

This is a large time-investment for today’s companies, who 45%

need to search for smarter ways to monitor and manage 37%

% of companies
regulatory compliance risks, perhaps by automizing the
process, especially as regulatory requirements grow.
18%

1-30 30-50 50+

hours/month hours/month hours/month

Figure 7: Person-hours spent Monthly Monitoring Regulatory Compliance Risks

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Time Spent on
Tracking Regulatory
Significantly less
3% Significantly more
8%

Risks, 2022 vs. 2021 Somewhat less

25%

50% of companies expect to spend more time on

tracking regulatory risks in 2022 in comparison to
Same to More
2021 73%

23% expect to spend the same amount of time on this task. Just
3% of respondents say they will be spending significantly less
time on tracking regulatory risks, suggesting that companies
Somewhat more
are struggling to find effective solutions that meet the
The same 42%
challenge of better time management around regulatory data. 23%

*Percentages do not add up to 100% due to rounding up of numbers

Figure 8: Time Spent on Tracking Regulatory Risks, 2022 vs. 2021

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Anticipation of Increase
in Volume of New Significantly
Significantly

Regulatory Information
increase
decrease
6%
6%
Somewhat
Increase
Somewhat
25%
Decrease
31%

Same
or increase
63% of companies expect the volume of regulatory information 63%
published by regulators to remain the same or increase.
Remain the
Whether it’s financial, legal or climate regulations that are same as today
33%
growing – we are living in a time of high governance and
governmental control where all industries need to be prepared
for tighter compliance regulations moving forward.

Figure 9: Anticipation of Increase in Volume

*Percentages do not add up to 100% due to rounding up of numbers of Regulatory Information Published by Regulators

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Integration of 84% - Can manually track regulatory changes

Regulatory Tracking
Technologies in 36% 47%

Workflows
63% - Have resources/skills to integrate regulatory tracking into our
workflow

38% 25%
When it comes to the integration of regulatory tracking
technologies into the companies’ workflows, 84% say that they
manually track regulatory changes. 63% say that they have the
Strongly Agree Somewhat Agree
resources and skills to integrate regulatory tracking into their
workflows.

*Percentages do not add up to 100% due to rounding up of numbers Figure 10: Integration of Regulatory Tracking Technologies Statements

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Top Factor Preventing
Workflow Integration of Insufficient technical support to introduce
new technology or service 53%

Regulatory Tracking
Services The lack of knowledge about these services 17%

86% of companies admit they have problems

preventing them from integrating regulatory
tracking into their workflows Budgetary restrictions 15%

86% of companies admit they have problems preventing them from integrating
regulatory tracking into their workflows.

The top factor (53%) is technical support to introduce new technology or Nothing, my company is integrating
14%
service. This is followed by a lack of knowledge about these services (17%). regulatory tracking services in our workflow

Budgetary restrictions are the least impactful reason that prevents workflow
integration, just 15% of the vote, showing that investment isn’t the issue holding
companies back.

With businesses feeling there is no easy and efficient option available to meet
their pain points, many companies are opting to manually track regulations – Figure 11: Top Factor Preventing Workflow Integration of Regulatory
the best choice using solutions currently available. Tracking Services

*Percentages do not add up to 100% due to rounding up of numbers 17

Top Factor Preventing 39%

Workflow Integration
Insufficient technical
59%
support to introduce new

of Regulatory Tracking
technology or service 46%

64%

Services by Industry 14%

The lack of 15%

knowledge about
29%
these services
13%

We took a deep dive into the data to break down the 32%
challenges by type of software being developed. Budgetary Budgetary 11%
restrictions is the main factor that prevents GRC companies restrictions
8%
from integrating regulatory tracking services (32%), while risk
10%
management companies lack knowledge about these services
the most. This is an industry that truly needs these solutions, so GRC RegTech Risk management Regulatory Intelligence
education is key to help risk management companies in finding
the right technology and support.

*Percentages do not add up to 100% due to rounding up of numbers Figure 12: Top Factor by Type Software

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Demographics

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Company Size, Software Developed, Seniority and
Type of Data Collected
Weighted average: 1,223 people Regulatory GRC
Intelligence 24%
43%
33%
% of companies

24% 23%

8%
2%
RegTech
Risk management 23%
101-200 people 201-500 people 501-1,000 people 1,001-5,000 5,001-10,000 20%
people people
Figure 14: Type of Software Developed
Figure 13: Company size
AML Data 45%
News W eb Data 43%
C-suite Adverse Media Data 40%
24% Data from… 37%
Director Vessels information 37%
Global regulatory… 36%
38%
Beneficial owners hip 36%
Sanctions & Watchlists 35%
PEP Data 34%
ESG Data 33%
US SAM 31%
VP/Head State owned entities… 28%
Iran economic… 24%
38%
Figure 16: Type of Data Collected
Figure 15: Job Seniority

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About Company
Webz.io is the leading provider of machine-defined web data. It transforms the vast pool of web data from across the open and dark web into
structured web data feeds, ready for machines to consume. Using Webz.io’s data, enterprises, developers, and analysts can now generate real time
actionable insights from the vast world of web data.

Contact Us

For more information, please visit us:

+972-77-3621-555
info@webz.io

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