The Importance of Investing in Compliance
Whilst compliance might not be the most exciting aspect of running a business, it is crucial to the success of your organisation.
With legislative changes, a growing list of regulatory standards and an increasing array of other business complexities, it is more important than ever to ensure your organisation remains fully compliant
So, what are the main compliance considerations, and what can business leaders actively do to ensure their organisation is fully compliant both now and in the future?
What is compliance?
Compliance is a set of standards and processes that organisations must adhere to in order to meet legal, ethical, or industry requirements. It ensures that organisations are following the laws and regulations applicable to their particular business, as well as any internal policies that have been set.
The scope of compliance can encompass both specific issues and broad considerations, from tax filing or employee safety to broader topics such as customer service or data protection. For example, a credit union must not only operate within the law, protecting its members and employees, whilst acting ethically, but it also must satisfy the compliance standards and expectations of its regulators. In addition, the evolving expectations of the public, for example in their desire for more digital services, adds further complexity for credit unions and all other customer-facing organisations and therefore warrants the investment of the necessary time and effort to fully understand their responsibilities and obligations.
Why is investing in compliance important?
Well, failure to comply with applicable laws or regulations can result in significant fines, penalties, and interventions. Furthermore, knowledge of compliance-related issues erodes the confidence of key stakeholders, especially your customers.
By investing in compliance training, business leaders can ensure their operations meet the highest standards of ethical and legal conduct and mitigate the risks associated with non-compliance. For example, knowing that you’re handling data responsibly will keep you compliant but can also help to strengthen the relationship with your partners, whilst building trust with your customers.
Enhancing the awareness of your people can also help to build a culture of compliance within the organisation, ensuring that employees understand the importance of following regulations and best practices. This can also help improve wider morale and productivity in the workplace.
How should we invest in compliance?
The most important thing business leaders can do is to instil a responsibility for compliance in everyone within the organisation, not just those with defined roles (e.g., CEO, compliance officer, director etc.). This should help to create an atmosphere where employees are encouraged to ask questions and voice their concerns over any potential breaches in compliance.
To achieve this requires training and education for all employees pertinent to their individual roles. Refresher courses should be diarised, and all employees should also have access to relevant resources (such as manuals, handbooks, newsletters etc.) to ensure everyone in the organisation is kept up to date with the latest changes, especially where operating in highly regulatory environments such as a credit union.
Organisations may also be able to identify suitable technology solutions that can support compliance, such as tracking and reporting data, assessing and recording risks, document management systems and security software. Access to such tools can greatly assist an organisation to monitor conformity and provide alerts to any possible violations in real time whilst navigating policy changes swiftly.
Conclusion - Aim to be reassuringly compliant
So, compliance is complex and can be confusing, but it is essential to achieving your wider business aims. But with access to the right advice and support, business leaders can quickly establish a compliance roadmap to fully satisfy all responsibilities and obligations.
Constituent is a values-based, strategic consultancy committed to providing straightforward advisory services that support business leaders to achieve successful outcomes. Our highly experienced compliance & governance practitioners offer straightforward advisory services that will quickly inform and establish a sound compliance framework that allows business leaders to drive forward their strategies with confidence.
To find out more, contact us today at www.constituentassociates.com
Executive Director, Constituent
About the author
Paul Rooney, BA LLB Dip LP MBA Executive Director & Founder, Constituent
Paul is an accomplished transformational executive, non-executive, and MBA graduate - inspired to realise the full potential of organisations within the scope of ethical and sustainable methodologies.
Paul has served two decades in leadership and strategic roles within diverse and challenging environments including an impressive political and legal career; demonstrating his embedded ethics, values, and integrity. His proven track record in successful business improvement is based upon systems thinking; specialising in the appraisal of business processes in the evaluation of the potential presented by technology propositions and the application of his ‘3Ps’ (Prudence, Performance & People) in the enhancement of operational performance.
Appointed by Government and others for his expertise in governance, strategy, and analysis; Paul has received national recognition for his leadership, innovation, and public policy activities across ethical finance, policing, and responsible investment.
Paul was awarded an MBA with Distinction from Strathclyde Business School, with his thesis exploring the influence of organisational culture upon successful transformational change.
Contact Paul at: firstname.lastname@example.org
Constituent is a values-based, strategic consultancy committed to providing straightforward advisory services that support business leaders to achieve successful outcomes.
Served by transformational experts with decades of experience, Constituent focusses its support on the specific needs of business leaders to inform and help shape their strategies centred around the principles of sound governance, good ethics, and a ‘people first’ mindset.
Constituent recognises that technology now influences every aspect of our lives, including how we work and how we consume services, and therefore all of our services embrace the digital journey by breaking down barriers between you and technology.
For more information, including thoughts of some of our fantastic clients, visit our website – www.constituentassociates.com