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It would be futile to leap into a remedy of how this is achieved without understanding what regulatory compliance means. Compliance means conforming to a guideline which may be an insurance plan, standard or regulation. Regulatory Compliance explains the goal that companies desire to achieve in order to comply with relevant regulations.

Where do business rules fit in the picture? Business rules are by definition a declaration that identifies the plans or constraints of a business. Since compliance requires conforming to a policy generally, business rules fit the perfect picture as a placeholder of such policies. That is for various reasons.

First, rules are repeatable and tractable to automation. Second, guidelines are transparent and easily traceable. This makes for increased visibility of the policies which should be complied with. Business rules applied with IBM’s Operational Decision Management software can be exported to a term or excel record, and even be emailed to an organization’s legal section in the format these are written. Third, rules can be changed easily with zero down-time to make the change to production. This can help organizations cope with an ever-changing regulatory environment and invite them to concentrate on its business rather than inviting preseason resources keeping up with a changing regulatory environment. How do regulatory compliance be performed by Operational Decision Management (ODM)?

The best way to describe ODM’s features for regulatory conformity would be to take existing conformity policies that firms have to constantly deal with, and propose an implementation using ODM. We take one of the very most challenging regulations that was lately (2010) enacted by the 111th US Congress – it is the Foreign Account Tax Compliance Act or even more popularly known as FATCA.

The act aims to tackle taxes evasion by PEOPLE IN AMERICA to tax havens or strong data security countries like Switzerland. Foreign financial institutions like banks, insurance firms and fund houses are affected by FATCA and need to comply with FATCA regulations. People with US nationality, US address or phone number and corporations with substantial US ownership are influenced by this legislation.

Complying with FATCA became so complicated and necessary at the same time that IBM has offered a specific FATCA solution in their offerings. One of the challenges FATCA brings is the quantity of information it needs a business to process which especially creates a headache to the organization’s technology platform.

There are three different impacts to the technology system with FATCA – customer classification, purchase monitoring and IRS confirming finally. Inside our business case example, why don’t we study customer classification. To be able to comply with FATCA, financial organizations have to collect a W-9 form from all account holders who are US Persons.

This is obviously business logic which can take an ugly and complex turn when applied in application code. The perfect solution is: WebSphere Operational Decision Management (ODM). The above mentioned business logic can be copied phrase to phrase and represented in the form of a business rule. It could be created in what’s called a guideline designer.

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The above business guideline can be exported as-is from what is called your choice center which is the special portal that business users have access to with the ODM collection of products. Decision Center gives immense presence to the rules across a business. Major stakeholders can log in to this portal and view the material of critical decision dining tables or business rules. Returning to our scenario above, the same FATCA rule when deployed to your choice center, can be edited by business users by click of the button. Any changes to these business rules generally can be directly deployed to production environment, through your choice center portal.

Obviously, there are many recommended governance strategies that provide checks and balances along with regression screening, so that wrong information is not forced to creation servers. Nevertheless, the capability to change a preexisting policy (or a decision table) is available with ODM. Regulations are here to stay and the earlier organizations adapt to implement conformity with these regulations, the better they’ll become for their competition.