Aristotle said “Law is order, and a good law is good order.” If you want orderliness in your business or organization, you must know/make good rules and regulations that will guide the business/organization and must be ready to strictly follow them. This will ensure everyone is on the same page and in order.
What is Compliance?
Just as rules and regulations are made in every aspect of life like sports or even relationships, so also businesses and organizations have rules and legal regulations they need to follow to help them, their employees and stakeholders safely navigate their environment. Instead of referring to this set of rules as laws, this procedure is known as compliance.
Compliance encompasses efforts put in place to ensure that organizations are abiding by both industry regulations and government legislation. Some are specific to industry or geography, and some are voluntary. One thing they have in common is that they are all necessary to conduct business and to compete effectively.
What is Compliance Management?
Compliance management is the process of monitoring and assessing groups of people in an organization to ensure they comply with industry and security standards, as well as corporate and regulatory policies and requirements.
Failure to comply with laws, regulations, and standards has high potential consequences same also is with noncompliance. It is very necessary and important for businesses and organizations to understand and abide by the rules guiding their industries. It is advisable to get a manager in charge of compliance management to help navigate this critical aspect.
Who is a Compliance Manager?
A compliance manger of a business or an organization ensures that the business/organization, its employees and its projects comply with all relevant regulations and specifications, including health and safety, environmental, legal or quality standards, as well as any ethical policies the company may have.
Compliance manager’s work is to prevent issues with legality and ethics within a company as well as ensuring the issues are fixed quickly and effectively if ever they occur.
Duties of a Compliance Manager
Below are some of the duties of a compliance manger.
- Conduct periodic internal reviews or audits.
- Direct internal investigation of compliance issues.
- Develop risk management strategies.
- Conduct environmental audits.
- Serve as a confidential point of contact for employees to the management.
- Maintain documentation of compliance activities
- Provide employee training on compliance related topics, policies, or procedures.
There is a disconnection between the costs of maintaining compliance and that of noncompliance today. Some organizations allocate a part of their overall compliance budget to paying fines rather than spending on tightening or strengthening compliance management activities.
The consequences for noncompliance go far beyond financial reparation, its affects a company/business reputation as well as possible future business. Therefore it is very advisable for businesses/organizations to spend more on maintaining compliance and to avoid noncompliance as much as possible.