Compliance management is nothing but the process of monitoring and assessing systems to ensure that they meet legal and regulatory requirements, as well as the company’s own internal policies and procedures. Furthermore, it involves the development of processes that can help a company to monitor and maintain compliance with applicable laws, regulations and policies.
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What are the Activities Involved in Compliance Management?
Following are the important functions of compliance management system.
- Identifying potential risks related to non-compliance.
- Regularly monitoring company’s compliance and business entities in accordance with applicable laws, regulations, and policies.
- Preparing regular reports on the company's compliance status and providing these reports to management and relevant stakeholders.
- Providing training to employees on compliance-related topics.
- Conducting regular audits to certify that the company’s compliance management system is effective and identifying areas for improvement.
- Taking appropriate action to address violations of laws, regulations, or company policies, including disciplinary action against business peers (be it employees, vendors or third party entities) who violate the rules.
How to Ensure Complete Compliance Management?
Ensuring complete compliance management requires a comprehensive approach that covers all aspects of the company's operations. Here are some additional steps that companies can take to ensure complete compliance management:
- Conduct a comprehensive compliance review: This helps your company identify any areas that may be at risk for non-compliance. It should cover all areas of the company’s operations, including finance, human resources, operations, and legal.
- Conduct due diligence on business partners and third-party vendors: This is done to make sure that the people your company does business with comply with relevant laws and regulations. This may include reviewing their compliance programs and conducting audits of their operations.
- Collaborate with external stakeholders: Involve specialists, like regulatory agencies, industry groups and legal counsel to check that the company’s compliance management system is aligned with industry standards and best practices.
- Document all compliance efforts with compliance management software: Keep detailed records of all compliance efforts, including policies and procedures, training, risk assessments, audits, reports and investigation. Your company can put this into a process with the help of a compliance management software.
- Regularly review and update the compliance management software/systems: To stay effective and relevant to the company’s changing needs and risks, it is important to update the compliance programs and processes.
Which is the Best Compliance Management Software?
D&B Onboard, presented by Dun & Bradstreet, the leading provider of business data and analytics, is one of the best compliance management software. The interface is designed to help companies manage regulatory compliance, mitigate risk and ensure that they are meeting their legal obligations. From document management to third-party due diligence, the program takes care of everything. Moreover, it seamlessly integrates with other systems, such as ERP and GRC solutions, to provide a more comprehensive view of compliance-related activities to various businesses.
Final Thoughts
By taking these additional steps, companies can ensure that their compliance management systems cover all aspects of their operations. Furthermore, it guarantees that companies have implemented effective controls to prevent and detect non-compliance. This helps companies to maintain a strong culture of compliance and avoid reputational damage or legal and financial penalties associated with non-compliance.
