“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.
How Crucial is a Compliance Management System?
Compliance Management might sound like a lot of extra work. But while it will certainly require commitment and some effort, noncompliance can result in penalties, legal actions, reputational damage and revenue loss. Compliance ensures that the organization and employees adheres to regulations, laws, and standards.
A flawed compliance culture causes a lot of damage that can not only hinder growth but also affect the ability to sustain success. On the other hand, a culture of trust with the values of compliance is a proven medium of success. Compliance management comprises of policies, standards, controls, documentation, assessment, audits, monitoring and ensures that the organization adheres to legal and industry requirements.
Fortunately, there are tools and technology you can use to make your compliance processes easier.
What is Compliance Management System?
A compliance management system provides an organization with a systematic approach to implement measures such as controls, processes and helps track and monitor compliance programs to comply with the legal and industry requirements. A compliance management system helps you operationalize compliance programs, implement better processes and controls, and enhance visibility and accountability.
Operationalize Compliance Using a Compliance Management System
Compliance Management System plays a crucial role in the healthy working of every organization. Leverage a compliance system to operationalize compliance programs, integrate compliance processes into business processes.
- Identify & understand organization’s compliance responsibilities.
- Set procedures, monitoring, auditing, and super-specific compliance training.
- Assign employees with responsibilities
- Make sure that the employees recognize their responsibilities.
- Ensure that the essential requirements will be integrated into business processes.
- Make employees accountable for their actions
- Analyzing vital operations to assure that responsibilities are performed and requirements are fulfilled.
- Update materials and policies based on changing requirements.
- Collect evidence to demonstrate compliance
Importance of Compliance Management System
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 damage done to 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 compliance, and many more.
Compliance Management 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 industry and internal 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.
How can VComply Help?
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.