In a recent study by The Ponemon Institute LLC (2018), non-compliance costs 2.71 times the cost of maintaining or meeting compliance requirements ($14.8 vs. $5.5m per organisation) while the Compliance & Ethics Leadership Council (2017) estimates that US Organisations lose 7% of their annual revenues to fraud.
Unfortunately, numbers like this are rarely compelling and Compliance professionals often face two key issues;
1. Integrating regulatory frameworks into ‘business as usual’ practice.
While governments are becoming more and more prescriptive when designing their regulatory frameworks, organizations recognise that the increasing complexity of their marketplaces means that these frameworks will always be behind current practice. Compliance teams are typically approaching this issue in two ways;
- Working with business managers and internal experts to build compliance policy into existing processes, rather than imposing new policies and leaving managers to sort out the implementation
- Implementing organization wide values programmes e.g. integrity or ethics, to complement their rules based processes.
2. Developing their professional competencies to enable them to work with their organization rather than simply acting as a mouthpiece for the regulators.
How does Compliance move from its regulatory / enforcement role to one that also includes a more proactive, business focused approach? Rather than relying on their technical knowledge, Compliance professionals need to develop their relationship skills and understand that credibility, proactiveness, stakeholder management and a range of so called ‘softer’ competencies actually hold the key to successfully implementing compliance programmes.
CourageousWorkplaces can help Compliance teams and individuals to;
• Gain new skills, knowledge and competencies to become more business focused e.g. to become ‘business partners’ or ‘trusted advisors’
• Provide advice, support, tools and resources to implement compliance programmes where the primary goal is to integrate Compliance into the business
• Build an organizational culture of integrity
If you'd like to know more then contact us.