Designing In-House Validation and Reconciliation Frameworks: A RegTech Approach to Pre-Submission Regulatory Risk Reduction
Author(s): Laxmi Naga Durga Pandrapragada
Publication #: 2606044
Date of Publication: 02.05.2026
Country: United States
Pages: 1-7
Published In: Volume 12 Issue 3 May-2026
DOI: https://doi.org/10.62970/IJIRCT.v12.i3.2606044
Abstract
Regulatory reporting programs operate under increasing supervisory scrutiny, where institutions are expected not only to produce accurate outputs but also to ensure that data is validated, reconciled, and controlled prior to submission. While many organizations implement validation rules and reconciliation processes, these controls are often fragmented, reactive, and disconnected from core reporting platforms. This creates gaps in pre-submission assurance, exposing institutions to regulatory risk.
This paper proposes a structured approach to designing in-house validation and reconciliation frameworks as part of an integrated RegTech architecture. It introduces a layered control model that combines rule-based validation, cross-system reconciliation, variance analysis, and exception management within a unified pre-submission assurance framework. The approach emphasizes automation, traceability, governance integration, and audit-defensible evidence generation.
Drawing on practical insights from regulatory reporting environments, this paper demonstrates how embedding validation and reconciliation capabilities within reporting platforms establishes a unified control architecture that enhances pre-submission assurance, strengthens audit defensibility, and aligns regulatory reporting processes with evolving supervisory expectations for transparency and data integrity [1], [3], [6].
Keywords: Regulatory Reporting, Validation Frameworks, Reconciliation, Pre-Submission Controls, Data Quality, RegTech, Control Architecture, Exception Management, Financial Reporting Systems, Audit Readiness, Supervisory Compliance, Risk Reduction, Data Consistency, Reporting Governance
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