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.

 

Subcategories of Ethics & Compliance

Audit Management

Audit Management solutions allow companies to computerize and automate all auditing activities and make them more reliable. covers all auditing processes ranging from definition scheduling preparation execution documentation of audits and tracking of recommendations The integrated dashboards and consolidation functions provide companies with an overview of all auditing activities in real time. Using these tools  improves productivity among auditing teams enhances audit assurance and allows for greater control over operations. Eliminate time-sucking tasks by using highly engaging and collaborative technology, so you can focus on high impact areas that need your professional judgement.

Policy Management

Policy management is the process of creating, communicating, and maintaining policies and procedures within an organization. An effective policy management system can mitigate risk in two ways. First, it makes policies more quickly accessible to direct care staff, guiding care and safety decisions. Second, it can protect an organization from litigation by staying up to date on accreditation standards and creating an audit trail in the case of legal action.

 

Incident/Case Management & Hotline

Software exists to intake, and manage cases and incidents.  These tools have specific confidentiality requirements while needing to preserve documents and notes as well as reflect the entire case history and trajectory.

Compliance Training

Compliance training refers to the process of educating employees on laws, regulations and company policies that apply to their day-to-day job responsibilities. An organization that engages in compliance training typically hopes to accomplish several goals: (1) avoiding and detecting violations by employees that could lead to legal liability for the organization; (2) creating a more hospitable and respectful workplace; (3) laying the groundwork for a partial or complete defense in the event that employee wrongdoing occurs despite the organization’s training efforts; and (4) adding business value and a competitive advantage.

Risk Management

Risk Management is an integrated solution designed for assessing managing and controlling risks and incidents. The solution covers the entire risk management cycle identification assessment and measurement of risks as well as implementation of corrective actions and assessment of control procedures.

Risk Assessments

Compliance risks emerge from violations (intentional or unintentional) of regulations, laws, codes of conduct, or standards of practice.  To understand these threats, organizations must assess their level of risk and exposure to potential damage. Compliance risk assessments are a vital part of an effective compliance program.  They should be performed regularly to support the development and implementation of a compliance work plan.  These assessments can be performed manually, or with the assistance of specialty software, and can be accomplished by an internal self-assessment paired with an external assessment by a third party every two to three years.

Regulatory Reporting

Regulatory reporting is the submission of raw or summary data needed by regulators to evaluate a bank’s operations and its overall health, thereby determining the status of compliance with applicable regulatory provisions. Governments across the world give prime importance to keep their banking systems updated. This has proved to be an important task, more so after the financial crisis of 2008-09.

Investigations

A Compliance Investigation is the observation or study of suspected fraud, abuse, waste, or reported violations of applicable laws, regulations, policies, procedures, or ethical violations by close examination and systematic inquiry.

Conflicts of Interest (COI) Tools

Conflict of Interest software enables you to easily report potential conflicts & seamlessly create a culture of integrity & responsibility. Similar to other types of unethical activities, conflict of interest activities carry the risk of consequences and can result in fines or prosecution. A conflict of interest exists if the circumstances are reasonably believed (on the basis of past experience and objective evidence) to create a risk that a decision may be unduly influenced by other, secondary interests, and not on whether a particular individual is actually influenced by a secondary interest.

Ethics & Compliance Consulting

There is an entire group of consultants who are experts in Ethics & Compliance generally, as well as consultants with particular niche expertise in specific subcategories of ethics and compliance.  These consultants can be used to supplement a company’s existing program, to design a program on your behalf, or to do the operational work of meeting your compliance needs.