The two companies have created a regulatory compliance and control service for financial services firms to address their immediate compliance and conduct requirements efficiently.
The service combines Deloitte’s regulatory intelligence with IBM’s cloud capabilities and big data style analysis techniques.
The company said the service will use IBM’s Watson cognitive computing to disaggregate and classify regulations, paragraph by paragraph which allows organizations to see if their own frameworks are meeting the mandates described in the regulatory language.
IBM recently updated its new enterprise clients for Watson Analytics, its cloud-based analytics service for offering insights into business operations. Since its release in December, IBM has added more than 40,000 people for using Watson Analytics, the company said earlier this year.
According to the companies, the service will also help to confirm regulatory control coverage, manage remediation and prioritize the efforts of future regulatory change programs.
Deloitte and IBM have also started to develop the next generation of capabilities for managing risk and regulatory compliance.
Both companies said the solution will include more predictive capabilities.
This can be applied in real time to help deliver actionable insights, limit exposure and reduce the impact of compliance and conduct issues that arise.
“The global enterprise risk management domain is undergoing significant transformation, and emerging technologies like big data and predictive analytics can be used to address complex regulatory requirements,” said Tom Scampion, Global Risk Analytics leader at Deloitte UK.
“Combining their knowledge with our technology will provide our clients with breakthrough capabilities and deliver risk and regulatory intelligence in ways previously not possible,” said Alistair Rennie, GM of Analytics Solutions, IBM.
For Deloitte, this is second such partnership in two months. In March, Deloitte and Verizon Enterprise Solutions joined hands to offer security and risk-management solutions to help businesses prepare when a cyber-attack occurs.