How crucial is a Compliance Management System in your organization?
“Compliance management is the process by which managers, plan, organize, control, and lead activities that ensure compliance with laws regulations & standards.” With the consequences of failing to comply with laws, regulations, and standards having such a high potential cost, compliance is clearly a very big issue for businesses.
Compliance Management might sound like a lot of extra work. But while it will certainly require commitment and some effort, there are tools you can use to make your job easier. When you get associated with a business, there are many categories of compliance that your company and its employees must uphold. “Compliance” refers to sticking to the rules i.e. you need to comply with relevant legislation, as well as any internal or external standards. Compliance Management System to an organization is all about:
1. Learning & understanding all the compliance responsibilities.
2. Making sure that the employees recognize their responsibilities.
3. Ensures that the essential requirements will be integrated into business processes.
4. Analyzing vital operations to assure that responsibilities are performed and requirements are fulfilled.
5. Makes a beneficial move and updates material as fundamental.
Compliance Management System plays a crucial role in the structure of every organization. A vivid and effective compliance management system will help check the risks relevant to an organization in administering several regulatory requirements. When correctly implemented and managed, issues within the organization that affects consumers will be efficiently resolved. Not sticking to compliance can lead to the damage done towards both the company and its customers. The compliance management system can include activities like Internal audits, Third-party audits, Security procedures and control, Preparing reports and providing supporting documentation, Developing and implementing policies and procedures to ensure compliances and many more.
Compliance Management is crucial for an organization for two purposes as it helps in:
- Minimizing legal risks & avoiding future costs: Legal compliance is a must, Compliance Management will help your company avoid legal risks. Lawsuits and settlements can easily cost you millions of dollars. Fines and other compensatory payments can also add up. And if you have entered into formal contracts with customers, the clauses of those contracts also become legal requirements. Without adherence to the letter of the law, you face costly litigation and the potential of untold damage to your business and its reputation. Effective compliance management protects you from these risks. It’s better to practice good data security and avoid a breach altogether.
- Compliance with other standards is also important: Rules and standards don’t just come from outside your company. They can also be internal. Your standard operating procedures would be a good example to start with. Some business organizations see managing compliance with your business rules as part of compliance management but most of them don’t.
VComply is an integrated platform that provides Compliance management as one of its solutions. VComply provides six simple steps to be followed in Compliance Management Process:
By acting diligently and creating complete transparency within your organization, VComply makes sure your organization systematically discovers and resolves many hidden tasks, saving you and your organization from easily avoidable losses effectively & efficiently.
VComply Editorial Team
A comprehensive platform to govern risks, compliance and workflows in your organization.