Regulatory compliance benefits organizations by promoting efficiency and avoiding unnecessary penalties. It improves public image and encourages business partners to work with the company.
Keeping up with compliance can be challenging. It can be expensive and time-consuming to regain compliant status when violations occur. Violations can cause the loss of sensitive client data and halt business proceedings.
Compliance Manuals
The compliance manual is a critical tool for establishing the rules and procedures that ensure a firm's executives and employees act in accordance with laws, regulations, and guidance from supervisory agencies. The manual also provides the basis for internal controls that a firm might have in place to help identify and prevent inappropriate conduct, as well as record keeping and reporting requirements.
A good compliance manual explains the regulatory regime under which a business operates and its policies, while also providing context for the underlying risk to the firm. It should be easily accessed by the firm's leadership and employees, and used as a reference for induction training and annual compliance refresher courses.
Managing and creating a manual requires support, cooperation, and input from the various departments that will be affected by it. The result is a comprehensive, practical resource that is the first-class guide every compliance professional needs.
Training
The main purpose of compliance training is to educate employees on company laws and regulations and how they impact their day-to-day work. It also promotes a positive company culture and ensures that all operating procedures and business philosophies are consistent with legal and ethical standards.
While other types of employee training may teach staff how to use the ERP software or file a time off request, compliance training typically involves legalities and focuses on a wide range of rules and policies. As such, it can be boring for employees to take and often has to be repeated on a yearly basis.
Using a learning management system (LMS) to deliver compliance courses makes the process easier for everyone involved. It reduces manual workload for L&D teams and allows managers to monitor training records to identify any potential issues. In addition, LMS platforms allow for renewal reminders and data on who has taken which courses to help organizations stay on top of their compliance responsibilities.
Audits
When it comes to complying with regulations, audits are the best way for a business to ensure its processes live up to the set standards. These may be conducted by the business itself, a third-party auditor or a regulator.
The results of an audit should be documented and communicated to the appropriate parties. For example, if the audit highlights that an organization isn't adhering to PCI compliance guidelines, this should be communicated to the relevant employees so they can review their current processes and implement necessary changes.
It's important that whoever conducts a compliance audit is impartial and doesn't have a vested interest in the outcome of the audit. Ideally, they should have experience conducting audits in the past and be knowledgeable about the specific rules and regulations that need to be followed. This will help the organization to get the most out of its audit and minimize any issues. A good compliance audit should also provide a roadmap for improvement and suggest possible next steps to prevent any future issues.
Monitoring
Regulatory compliance monitoring is a continuous assessment of a company's policies and procedures. It helps businesses identify any issues that may cause them to fall out of compliance with regulations. It also helps them avoid pitfalls and fines that come with non-compliance.
The monitoring process involves searching for documents and other data that are related to the relevant laws and regulations. The information can be gathered from different sources, including government websites, industry publications, and peer-reviewed journals. The results of this analysis can be used to identify potential risks and vulnerabilities in the company's infrastructure.
Monitoring helps reduce risks and protect assets, while demonstrating accountability to regulators and stakeholders. It can also help preserve customer trust and loyalty, which is essential to business success. In addition, it can help businesses avoid Compliance and Regulatory Support costly legal and reputational consequences, such as a loss of licenses and certifications. Managed SIEM (Security Information and Event Management) services can help with the monitoring process by analyzing logs to detect security-related events.
