Compliance: Leadership and Artificial Intelligence – Intrinsic Motivation and Extrinsic GRC Solutions – Some Recommendations

Aug 30, 2018

Co-authored with Dr. Hans-Peter Guelich, Founder and CEO of Dydon AG, a Swiss based leading provider of Risk & Compliance solutions

Blog - Leadership and Artificial Intelligence

In many industries, the importance of compliance to specific regulations has greatly increased. Leaders at all levels of the organization are responsible for the best possible performance but also for ensuring compliance and are held responsible for the compliant behavior of teams they lead. Failure to conform to compliance can have very serious consequences.

Organizations can and should use a combined intrinsic & extrinsic motivation approach to ensure compliance:

  • intrinsic motivation controls actions at their source and creates positive identification with the objectives of compliance; intrinsic motivation is best supported by excellence in leadership and respective intelligent GRC guidelines (motivation through values & meaningful work) and systems (motivation through interesting work, while machines take care of routine tasks)
  • extrinsic motivation supports compliant behavior because individuals in the organization know that their actions will be monitored, using the same AI solutions easing their work, and there will be consequences in case of not following the rules; state-of-the-art monitoring systems use artificial intelligence

How can leaders foster intrinsic identification with compliance even though its objectives sometimes seem to conflict with time and performance pressures? Our recommendations:

  • Utilize AI based GRC solutions taking on repetitive and often boring compliance activities enabling the compliance team to focus on the complex and thus interesting compliance topics.
  • Ensure that compliance awareness is taken into consideration as a high priority objective in the design of ‘soft skills’ training and assessments programs such as leadership training. Review existing assessment and training procedures to ensure that the leveraging potential of good leadership for reliable compliance is optimally utilized
  • In training we strongly recommend a lean and close to hands-on business approach with short training units that are repeated and varied regularly, instead of larger isolated blocks of training
  • In the selection of the best AI centered GRC systems we recommend a compliance wide AI strategy and solution which combines tailored-to-fit artificial intelligence and central data structuring with respective predictive models and ensures all forward-looking management information is presented via intuitive and informative dashboards

 

Dr. Hans-Peter Guellich is the founder and CEO of Dydon AG a Swiss based leading provider of Risk & Compliance solutions utilizing latest Artificial Intelligence and Machine Learning technology. Dr. Guellich is a serial entrepreneur and strategic investor in small and mid-cap corporations with an IT and industry focus. Dr. Hans-Peter Guellich has an in-depth practical experience in the development and design of individualized Governance, Risk and Compliance concepts and systems.



Wherever you go, go with all your heart - Confucius.