IT Governance

A Mature Compliance Framework Is No Longer Optional. Why?

Implementing a robust compliance framework is about mitigating risk and adhering to rules set by external authorities. It helps you understand the current and upcoming challenges and fix them in advance. With authorities constantly revising and reinforcing laws to eliminate fraudulent activities, staying one step ahead of the game is critical. So, how do you build a compliance strategy? This article at Indeed shares a list of compliance strategy goals and explains how to create your own.

Why Should You Have a Strong Compliance Framework?

Establishing a solid compliance strategy reduces the cost of penalties, internal audit investigations, and inquiries into compliance breaches. Additionally, it scrutinizes tools, technology, and analytics the business uses. “The International Organization for Standardization (ISO), for example, provides regulations on safety standards and quality production. A steel plant that operates according to the ISO standard may have a higher quality product than plants that do not follow their strategies,” says the author.

How Do You Develop a Compliance Framework?

Assess Your Goals

Ask yourself: What do you want to achieve with your compliance framework? It could be to:

  • Save time and expense on investigations following failure to abide by the laws.
  • Work more closely with the business to enable compliance.
  • Cut the number of penalties the company pays out.
  • Impart knowledge of new legislation that impacts your organization.

Write your goals in a detailed format, such as a presentation or memo. This helps your staff understand why following a compliance strategy is crucial and how it facilitates improvement within the company.

Align With Your Corporate Culture

Explain how compliance is advantageous at each level of your company’s structure. This alignment of compliance with your corporate culture opens the door for easier acceptance of new policies across the organization. Additionally, employees must know why they must commit to transparency if they want to achieve success in aligning compliance with corporate culture.

Develop Formal Policies, Procedures, and Standards

Develop formal policies, procedures, and standards that comply with the law. Often, business leaders follow the technical standards laid out in the legislation but miss the internal audits. Conducting internal checks helps in identifying potential software or human errors before there are any negative consequences.

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