Today we will pick up from our last discussion on why businesses need compliance as a key piece in their strategy. Now that we know the incentives of an effective compliance management system in place, let us explore how we can weave the ethos of compliance in the fabric of a business.
Increased regulatory requirements demand an effective and intelligent framework for implementation and execution of compliance. The guidance has to come from the top with the CCO being the pivot to the effort. Indeed, with a support system in place, a mere set of rule and regulation transforms into a set of ethics. So the question is how can we deliver and what are the initiatives we can target in that direction. Let us explore.
Top Down Approach
Like an engine pulling up the rakes through turns and uphill, the CEO needs to set the direction with CCO being in the driver seat. Especially in organisations spread over different business unit and geographies, the task of implementing compliance at local level gets complicated. The CCO need to partner with C-Suite leadership to effectively implement the program across business verticals and geographies.
Transparency and Setting up incentives in place
Greater transparency in business practices with a clearly defined responsibility and chain of command goes a long way in creating a conducive environment for compliance. In the case of any aberration from the standardised process, a proper reporting mechanism provides a data trail to track and effectively mitigate the non-compliance. At the same time, the stakeholders need to be brought on board and should be involved in the process of implementation of compliance. A system of recognising and rewarding them for their contribution to the effort encourages a culture of good practice and creates the groundwork for developing a culture of compliance.
Every passing year there are countless changes in the economic scenario. The way business are evolving is transforming and has become more complex. An increasing number of regulations are being introduced. The implementation mechanism has to evolve also from excel sheets and emails. What we need is a collaborative platform where the compliance unit of a business can interact with different business verticals across geographies . It can integrate hierarchy to ensure efficient monitoring. In fact, the introduction of technology can aid in setting up of a more transparent system as discussed in point 2. Moreover, a central database of compliance task delegated among resources with a performance tracking and reminder system in place creates an effective policy delivery mechanism. V-Comply with secure cloud-based platform addresses these requirements with precision.
Training and Retraining
We all know how the drill goes for those once in a year training. One merely goes through a set of lessons in your learning management system. We fail to absorb and internalize the lessons learnt! This makes the exercise fall short of the intended purpose. With evolving business practices and innovation, the application of the same earlier set of rules changes. They get the new angel of interpretation and implementation. Thus, everyone should encourage case based learning. Here, discussion and dissection of the fallacy or effective implementation of the rules becomes possible. It makes the process more interactive and engaging. Another way would be to design the training process in steps with different areas being explored on a frequent interval. Thereby ensuring effective knowledge update and awareness and eventually internalized compliance as an internal culture.
Involve Compliance in Strategic planning
The key to setup a business strategy is to weigh in the potential risks and challenges associated with a decision. Now apart from the associated operational or financial risk, there are always compliance challenges. An organization should take a CCO on board! It shall not only help in assessing key compliance challenges but also, manage potential roadblocks to a decision. Moreover, it would promote a culture of compliance as an inherent part of executive decision-making process.
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