Conceptual framework for advancing regulatory compliance and risk management in emerging markets through digital innovation
1 Independent Researcher, Warri, Delta State, Nigeria.
2 Independent Researcher, Abuja.
3 University of Potomac, Virginia Campus, USA.
4 Wells Fargo, Charlotte, North Carolina.
Review Article
World Journal of Advanced Research and Reviews, 2024, 23(03), 1155–1162
Publication history:
Received on 02 October 2024; revised on 09 November 2024; accepted on 12 November 2024
Abstract:
Emerging markets face significant regulatory compliance and risk management challenges, including economic instability, inadequate infrastructure, and rapid globalization. Digital innovation offers transformative potential to address these issues through advanced tools such as artificial intelligence (AI), blockchain, and data analytics. This paper proposes a conceptual framework for integrating digital tools into compliance systems to enhance efficiency, transparency, and scalability. The framework highlights three core components: technology adoption, regulatory collaboration, and data integration. These elements collectively streamline compliance processes, enable proactive risk management, and foster stronger relationships between businesses and regulators. While the framework offers substantial benefits, including improved accuracy and scalability, its implementation is hindered by high costs, limited infrastructure, and resistance to change. Recommendations are provided for policymakers, regulatory bodies, and businesses to overcome these barriers, including investments in digital infrastructure, regulatory sandboxes, and capacity-building initiatives. By adopting this framework, emerging markets can achieve more effective compliance and risk management systems, contributing to sustainable economic growth and global competitiveness.
Keywords:
Digital innovation; Regulatory compliance; Risk management; Emerging markets; Blockchain; Artificial intelligence
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0