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How to Enhance Your Business with Robust Compliance Management

Compliance management is a type of protocol that simply put keeps your business out of trouble. Globally companies are sued for everything from insider trading to other infractions and there is a lot of risk of employee malpractice or incompetence as well. A robust compliance management strategy can prevent breaking of the law as far as possible and provide other types of legal protection in case something goes wrong. 

Compliance departments which exist in many businesses have strategies and protocols in place before a legal infraction occurs so that they are not caught off-guard. They may choose to learn from the past but it is present monitoring that concerns them the most.

A compliance strategy is not composed in a vacuum but is rather a reflection of the area where the business is located, the type of business, the industry in which the business operates, and the full nature and scope of its operations. Compliance strategists are always aware of government laws and regulations and they keep them in mind when developing protocols. 

Risk Calculation And Estimation 

A good compliance management works on accurate and comprehensive estimation and assessment of the risks presented to a business internally and externally. In order to do that it is vital to know industry standard protocols for the type of business you run, the laws and regulations applicable from the government or other regulatory bodies, and the internal regulations that govern an organization.

Most compliance experts will start with or pay the most attention to a few main areas namely contractual terms, data privacy systems, employer-employee practices or labor practices, and financial matters. 

Risk assessment is a preemptive approach and while some may deem it an unnecessary use of resources, it provides a perspective of where potentially a legal problem may arise. SWOT analysis which stands for strengths, weaknesses, opportunities and threats can be a useful yet basic tool to weed out potential issues as can risk matrices.

Providing a framework for risk assessment allows the information to be widely shared among relevant parties without confusion or long documents. Graphical representation offers the opportunity for quicker decision making and action. 

Compliance Can Be Taught 

It is impossible to adequately prevent legal issues from resulting if your employees are not trained or aware of the regulations and protocols that govern the business, the industry and the presence of both in a specific geographical location. Furthermore, without a trained staff that is well aware of how to avoid legal infractions, there will always be trouble down the line for the organization. Training seminars can be a bit of an investment but a worthwhile one for the long-term growth and stability of the business. 

Training should be tailored department wise and for each position filled by a staff member as this ensures everyone knows the limitations of their employment and how to function without crossing them. Learning consistently on the job offers greater job satisfaction to employees and works well for robust compliance management. Instituting a system of monitoring employee performance and compliance can be a good check to see if training is working well or needs adjustments in order to be more effective. 

A compliance program that is structured for every department within a business can be a clear document for employees to follow that eliminates confusion or forgetfulness. It can also be displayed in main areas where employees work or congregate. It has the following components in order to be easy to follow and effective. 

  • There should be a compliance manager or expert that overlooks all related affairs and prepares reports about risk areas. 
  • Internal audits are a part of most medium to large enterprises and one should be established for compliance management. This will allow the related department to monitor all employees, dealing and transactions. 
  • Policies should be clearly communicated, training should be provided and rules and regulations should be shared and circulated widely in the organization. 
  • The administration of the business should make a point of sharing valuable information such as industry standards and governmental rules and regulations so that no employee is ignorant or unaware. This step will encourage a vigilance on the part of managers and employees in actively avoiding legal hassles. 

Comprehensive Auditing & Compliance Management 

Auditing done well can prevent legal problems as well as non-compliance with internal rules and polices. Here are some best practices that can optimize monitoring and auditing and strengthen the internal systems that a business has put into place. 

  • Periodic audits that are scheduled (or kept secret from employees in order to weed out discrepancies) should be the norm. Improvement areas will emerge and new internal rules can be drafted to overcome those deficiencies. Inter-departmental compliance can also be checked by internal audits, to the benefit of the whole business. 
  • Monitoring carried out in real-time is very effective especially if there is enough compliance management staff to review all possible threats very quickly and suggest action. Violations are sometimes time-sensitive, in the sense that a business may need to report them to the relevant authorities quickly in order to prevent liability as much as possible. 
  • Employees can also be used for monitoring especially if they are assured of certain benefits or incentives. If anonymity is desired in the workplace, the compliance management department can have a mechanism or feedback portal where employees can submit complaints or information about compliance violations. 
  • Regular monitoring of internal compliance policies can be useful if changes need to be made. Oftentimes a policy may prove ineffective or counter-productive and regular monitoring can highlight the need for a change. 

At The Heart of The Business 

The principle of corporate compliance can be cultivated in the very heart of the organization by sound leadership, good training and a general ethical work environment which gives respect to rules and regulations. The culture in any workplace has no small effect on the occurrence or lack thereof of legal infractions. The management or leadership should have open channels of communication with their employees and compliance should be encouraged with adequate incentives such as bonuses and paid leave. 

Make Use of Reliable Compliance Technology 

Technological tools can reduce man hours and manual paperwork when it comes to most aspects of running a business and definitely for compliance management. AI analytics and compliance software can automate most processes related to monitoring so that the compliance manager and staff can focus on coming up with solutions and disaster management. Cloud servers can be used to share information and data in a confidential manner only with those that have the relevant security clearance. 

Conclusion 

Robust and proactive compliance management is one of the cornerstones of a successful and growing business that enjoys a stellar reputation in the industry and a steadily increasing market share. With careful monitoring and the creation of systems, any business can improve their compliance and prevent costly lawsuits and other legal problems which affect an enterprise both financially and in terms of their brand image.

In today’s world of social media being the most major source of information for most people and a prevalent tendency for a cancel culture, most businesses cannot afford negative press.  

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