The global regulatory environment is becoming more dynamic and complex as the pace of changing reforms in increasing. Organizations are faced with new regulatory obligations more often, the high appetite for risky activities, increased scrutiny of internal operations and third parties and increased cost of compliance.
The changing regulatory requirements are factors of increased supervision due to the less flexible and predictable regulatory environment, increased focus on reducing risks through more vigilance on business processes, strict enforcement of regulations.
In order to effectively manage risks, companies traditionally have been reactive to their regulatory compliances. The reactive approach is simple and has lower upfront costs. However, the major disadvantage would be higher non-compliance costs, increased risk vulnerability, and incompleteness. In order to manage regulatory compliances in today’s time, it recommended to organizations to adopt a more proactive approach.
Proactive Approach towards compliance is a self-motivated and predictive approach towards laws and regulations. A proactive approach towards compliance will implement best practices, identify and mitigate any possible risks before it is actually caused by the regulatory change.
Map every controls, indicators, compliance, audits and policies to the rules and regulations they are connected to. So when any regulation changes, you can integrate the changes into your factors and become ready for any regulatory changes. This can enable organizations to become always compliant and reduce financial, legal, and regulatory risks. This would reduce the cost of non-compliance and provide top management with increased visibility into current business compliances.
However, becoming proactive is not an easy task. It would require a shift in the organization’s approach.
Strong Compliance Culture
Compliance does not work in silos. Compliance needs to be integrated into the organizational culture. A proactive organization can only implement proactive compliance. Every employee should be well aware of the compliance system and inculcate compliance in their duties.
Secure your Data
High data security would help mitigate IT risks and would help the organization take advantage of the IT platform for speedy compliance implementation. Centralize your data storage on secured servers along with improved transparency and data access procedures.
Map your policies to the regulations
Mapping your business operations with controls and indicators which is further mapped to the regulatory environment would help the organization stay up-to-date with any regulatory changes and help them visualize and design the impact of the changes in their present controls affecting their business.
Data defines performance in today’s corporate world. Gather all the relevant data from all trusted sources, validate their accuracy and completeness, and analyze them to uncover insights to help predict the possible impact of any regulatory environment changes onto your business. Even a discussion among the regulatory bodies can help better prepare for any changes in regulations.
VComply provides a secured and proactive model for compliance management with risk classification tool to enable organizations to mitigate risks of changing compliance environment.
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