What is it?
Compliance is the act of adhering to, and demonstrating adherence to, external laws and regulations as well as corporate policies and procedures. It covers a wide range of activities, services, and various type of regulations, such as FCPA (Foreign Corrupt Practices Act), Anti-Money Laundering, Food and Product Safety, FDA Compliance (Food, Drug Administration), Direct and Indirect Tax Compliance, etc.
Why is it important?
Managing compliance is a crucial mission for any company since a misstep in compliance can induce fines, disruption of operation, liabilities, and serious reputational damage. With the specter of cyber-attacks and privacy issues, compliance is also about ensuring that companies comply with relevant regulations, as well as with data protection laws.
Integrating compliance into an overall GRC capability ensures that such activities are aligned with business objectives, strategies, risk management, legal, finance, IT and culture, and that they are audit-ready.
What to look for in Ethics & Compliance Tools?
Depending on where your Ethics & Compliance team sits, other departments like IT, risk management, and HR may benefit from being involved in the selection process of a new tool as the tool should be beneficial and used by all who perform ethics and compliance functions, if possible.
Technologies related to Compliance Management provides a comprehensive system to manage the concerned regulatory and corporate compliance requirements to simplify their management and monitoring. Additionally, technologies can help with the standardization of the process to make it more efficient, avoid duplicates, and allow a proactive identification and management of the point of interest.