March 31, 2021
Organizations continually face challenges from emerging demands to drive greater quality security, safety, stable finance and to sustain value-driven performance. The need for establishing credible reputation has led to a wide variety of interventions in complying with stringent security measures. Traditional business environment dealt with governance, risk and compliance management as separate entities without a convergent focus.
Due to the need for effective compliance management, organizations now need to break away from isolated efforts in IT compliance management to effectively manage increasing costs and security. There is a greater need for a perfect compliance management solution to address all compliance issues in an integrated manner. This approach helps manage all aspects of governance risk in a centralized manner to promote greater transparency and accountability. Strict compliance to safety, security, finance, legal matters, IT, quality etc. are therefore, necessities that propel the growth of any organization.
1. Understanding a perfect Compliance Management Solution
The success concoction should be a painstaking mix of few crucial aspects at all stages of corporate compliance management program. This includes:
2. Local Point of Responsibility and Attribute Hierarchy
Understanding compliance management laws is a scrupulous task and not everyone’s cup of tea. So like other specialized functions say marketing, accounts, sales, compliance should also be one of the dedicated functions; with a dedicated Director or Head who is experienced and qualified to take control of the compliance plan.
3. Devoted Budget and Resources
Compliance management budgets are the least preferred in any organization since it’s never considered as a profit center. Probably, if there is no devoted budget plan, your non-compliant activities are going to incur costs to the company. Since that bargain includes penalties, fines and disruption of licenses. Hence let the compliance wisdom prevail and have dedicated compliance management budget and allocation of required resources.
4. Building a Compliance Management Culture
To be compliant involuntarily, you need to build your internal policies matching the best in the industry. Whenever any law is implemented, one tends to find ways and means to meet the requirements. Building a culture to excel as per the standards motivates the team to stand out in terms of quality. Establish policies that match the compliance management standards. Also, be extra careful with the most vulnerable compliance areas and turn these into thumb rules of your business processes. Merge the internal policies with the compliance plan.
5. Stay up-to-date
Laws and rules are changed and modified at the drop of a hat. Hence, it’s very important to stay-up-date since being ignorant is lame and unforgivable. The core team has to be really proactive and keep note of all the modifications. In addition the spread of the information should be quick and percolate to the last tier and that can be accomplished by building ways and means to easy access of information.
6. Manage, Measure, Monitor (Three Ms)
These three would remain the constant through compliance management program. Once you have the plan in place, and the team trained, it’s essential to manage compliance tasks, measure the progress and monitor the efforts of the personnel involved. It is crucial to make sure that the policies formulated are implemented, the intended business behavior is in place and the compliance management tasks are accomplished effectively. To make things really simple and efficient, organizations these days are integrating compliance management software that becomes the focal point of all the compliance management tasks and accountability of the team involved apart from keeping everyone involved updated of the status.
Also, compliance management obligation can be solved via business process management (BPM) and there exist tools in the market which track compliance obligations and alert anyone responsible. Depending on the audience, business process management can take on many meanings. It is always process-related, but depending on the business and its customers, it is a term that can be used to describe how the people, technology, decisions, or operations flow. Simply put, BPM is a systematic method to improve business processes. It is also a cohesive system that crosses the line between management of people and management of information. Hence, BPM software is being operated and implemented by IT experts.
BPM focuses on putting a consistent, automated process in place. For every business, this reduces operational costs by decreasing waste and rework, increasing efficiencies, and improving the cohesion within the company. At a very high level, BPM requires three steps to process improvement. First, the processes are mapped so that they are understood. In addition, there are improvements made to the processes. Finally, the processes are monitored for performance.
IN CONCLUSION, it is noteworthy to state that weaving a compliance management culture into the basic fabric of the company and bringing each and every process and personnel under the umbrella of compliance plan can be a daunting task but practically made easy with business process compliance management. Hence, through BPM, organizations can easily achieve effective compliance management for successful and hitch free business.