Purpose of functional area
The purpose of the Compliance and Regulatory team is to ensure business is compliant with applicable legislation and regulations.
Inputs: How it impacts CVM
- Regulatory requirements significantly affect customer data collection, handling, communication strategies, product offerings, and pricing structures.
- Regulatory requirements significantly affect customer data exchange with third parties.
CVM work related to function
- Ensuring CVM operations are compliant with all applicable laws and regulations in:
- Data collection and Privacy
- Customer communication
- AI and ML use for Customer profiling
- Pricing and Promotion mechanics
- To comply with internal and external audit requests
Outputs: How CVM impacts this area
- CVM area works with one of the most sensitive assets from a regulatory standpoint – customer data, consolidated into one place. As a result, CVM generates a number of risks related to privacy regulation.
- CVM area works with one of the most sensitive tools from a regulatory standpoint – predictive models and AI. As a result, CVM generates a number of risks related to AI regulation.
- CVM area works with one of the most sensitive business aspects from a regulatory standpoint -pricing and promotion. As a result, CVM generates a number of risks related to commercial pricing and promotion regulation.
Key handshakes to consider
Collaboration with the regulatory and compliance team is a must to manage risks inherent in CVM initiatives. The teams should focus on ensuring CVM tactics are aligned with legal requirements and industry best practices:
- Applying GDPR principles in customer data management and campaigns.
- Ensuring transparent and compliant customer communication practices.
- Following relevant regulations in the area of AI and ML
- Following relevant regulations in the area of customer profiling
- Structuring product and pricing strategies in compliance with non-discrimination and consumer protection laws.
- Leveraging technology solutions for continuous monitoring and compliance assurance.
Impact of collaboration quality on CVM team results
HIGH – lack of alignment with Regulatory and Compliance team results in delays and obstruction of work in CVM and may result in launch of non-compliant initiatives that may incur significant penalties.