Developing Accounting of Regulatory Compliance Risk inside Non-Banking Finance Companies under Regulatory Technology- Theoretical Analytical Study | ||
| مجلة الاسکندرية للبحوث المحاسبية | ||
| Article 12, Volume 9, Issue 3, September 2025, Pages 1-36 PDF (1.43 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/aljalexu.2025.455277 | ||
| Authors | ||
| Hamdi Qadous1; Ahmed El-Sayed Hamdallah2; Israa Sami Dabour3 | ||
| 1Accounting Dept., Faculty of Commerce and Business, Helwan University | ||
| 2Accounting Dept., Faculty of Commerce and Business, Helwan University | ||
| 3Assistant lecturer, Accounting Dept., May University in Cairo | ||
| Abstract | ||
| Organizations face significant risks that may threaten their operations, reputation, and financial stability. These risks highlight the importance of an effective risk management strategy (Kokina, 2021). A critical aspect of risk management that cannot be overlooked is legal and regulatory compliance. Traditional compliance approaches, often outdated, labor-intensive, and costly, have proven insufficient to address the scale and complexity of current regulatory requirements (Judijanto et al., 2023). As a result, there has been a growing demand for innovative solutions that not only meet these requirements but also enhance operational efficiency and strategic decision-making (Ofoeda et al., 2012). Regulatory technology (RegTech) in the Egyptian business environment represents an emerging tool for managing regulatory compliance risks in light of regulatory decisions. These decisions contribute to the reliance on RegTech and Supervisory Technology (RTS) to enhance the stability of non-banking financial markets. This paper aims to explore how accounting for regulatory compliance risks has evolved in light of RegTech within the non-banking financial sector. This sector is at the forefront of technological developments in the Egyptian business environment, given the regulatory authorities' pursuit of a technological regulatory and supervisory era in this sector. This is in light of the regulatory decisions issued by the Financial Regulatory Authority (FRA) that manage regulatory compliance risks in light of regulatory technology, including Decisions No. 5 and 268 of 2022, and the package of technological decisions Nos. 139, 140, and 141 of 2023. The researchers used a theoretical survey tool by analyzing theoretical literature and previous studies relevant to the study. The most important findings reached by the researchers are the necessity of adopting regulatory technology within the Egyptian business environment as a basis for managing regulatory compliance risks, in light of the issued decisions. Managing regulatory compliance risks positively impacts the financial risks of the institution in terms of increased liquidity and credit. The research survey revealed a scarcity of research that discussed regulatory compliance risks from an accounting perspective. | ||
| Keywords | ||
| Regulatory Technology/ Regtech; Compliance risk; Regulatory Compliance; Digital transformation; Financial Risk | ||
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