The world of compliance management is vast, complex and risk-prone. Add to this the ever-changing regulatory compliances. Without a proper strategy, small but significant alterations to laws can be easily missed. Required forms and information are constantly being tweaked and staying up to date is a task which requires constant surveillance and research. This can be a challenge for a company that does not specialize in this domain and without the use of an expert system, it can become a cumbersome, confusing and chaotic activity.
For tracking Regulatory Compliance understanding what it is and why it is necessary is important. The consequences of non-compliance are severe and damaging. Failing to manage regulatory change can see organizations face vast penalties from regulatory bodies and also reputational damage in case of any publications. Becoming irrelevant is another threat stemming out of non-compliance.
The question arises how to best track these changes and ensure compliance. Following are a few steps to facilitate better tracking and implementation of these constant changes:
1. Identify the regulators and subscribe to their newsletter :-
Firstly, maintain a database of all applicable regulations and the regulatory authority. Subscribe to their newsletter or any newsletter which gives regular updates from the legislator (Law firms, Regulatory bodies etc.). This will help in identifying the requirements and tracking the deadlines of regulatory compliances.
2. Inform the staff and all stakeholders :-
The most important contributor of a Compliance management system are the staff members/employees across divisions. Therefore, informing and updating the staff is the first and foremost step to ensure the implementation of these regulatory changes.
3. Inform Clients :-
It is important to inform the clients of the new updates and establish the fact that complying with the new requirements and the regulatory compliances is in common interest and not optional.
4. Internal governance process :-
Having an internal tool like compliance management system is essential to track all obligations and ensure compliance. A central repository to track all new requirements with a processed workflow ensures all the new and existing regulatory compliances are duly closed.
5. Auditing :-
Security and risk management is critical in every organization, and the most effective tool for recognizing potential problems and non-compliant areas is regular, effective auditing. It is also advisable to, appoint a single person or a dedicated team in charge of company’s compliance operations.
Larger entities may have a dedicated staff to monitor regulatory compliances but the smaller entities struggle as they have a smaller staff and might not have a dedicated department to track the same. Regardless of the structure of the organization, tracking regulatory changes is extremely critical and the above tips might help organizations in doing the same.