Compliance has become a signifiant issue for most organisations. It ranges from guidelines and regulations for internal control over financial reporting to specific requirements for process capabilities or outcomes prescribed by national regulators and contractual obligations.
- The risk of non-compliance is growing all the time.
- The potential for enormous financial and reputational impact is considerable.
- But, companies cannot sustain the current high compliance costs.
- Compliance initiatives can be the catalyst route for value delivery.
Complex and multiple compliance requirements, as well as the cost of meeting them, necessitate a sustainable and integrated strategy.
- Responding to individual compliance requirements may be effective in the short-term but it will be inefficient and unsustainable in the long-term.
- Many compliance requirements are a result of poor practices that have crept into the business.
- Responding to compliance requirements can enhance operational performance and information quality.
- An approach that will rationalise unnecessary complexity.
WHAT TO DO
Use a business-driven, risk-focused and technology-based approach that will:
- Address compliance requirements using a sustainable process based approach
- Follow a pre-defined order of improvements to address compliance requirements
- Build a compliance framework sufficient for business requirements.
- Compliance is a process effected by people.
- Accountability for compliance activities is key.
- Delegated resonsibility for compliance must be matched with suitable authority.
- Often compliance initiatives provide value beyond satisfying regulatory requirements.