Contribution regarding compliance management (particularly from an Australian perspective).
Increasingly complex and dynamic regulatory landscapes, rapid technology change, and global business environments are among the few factors that have been driving companies to become more focused on risk and compliance management in their businesses. In earlier times, compliance and risk management was considered burdensome. There was no check and balance until recently whether companies were operating under the rules and regulations set by the government. Today, however, is a completely different picture. More and more companies are trying to portray themselves compliant and the topic has started to get more attention in boardroom meetings.
It is due to this increasing demand for compliance and risk management that the AFSA’s compliance program 2016-2017 focuses on issues like independence, quality of the outcomes, proactive monitoring, complaints, disciplinary action and investigation and prosecution of offenses against bankruptcy etc.
Companies need to introduce tailored compliance programs to target the core risk areas faced by the business to navigate the route to any possible pitfalls without inflicting pointless restrictions.
Here are 5 reasons why your company needs a compliance management system.
1. Quality Enhancement:
One of the biggest perks of quality compliance programs is that they help minimize the chances of any errors, prevent failures or detect them at an early stage. This helps business to reduce the risks to repeat the same errors again, making processes smoother and efficient. The early detection of mistakes and errors improves overall quality of processes, saves time, efforts, and money in the longer run. There are a number of consultancies, like Ariel & Associates in Sydney, that draw from corporate experiences in providing compliance solutions for your business to help with the above.
2. Ensures Trust In Your Company And Breeds Brand Loyalty:
When you have a clear and effective compliance management system, it gives all your stakeholders the idea that you value compliance in all your processes by making it a top priority. Complying with standardized rules shows that your vision involves doing business the right way within the ethical boundaries set. It further demonstrates that you are well informed about the rules and regulations, which in itself proves your dedication and commitment. This builds a sense of trustworthiness and loyalty with your customers, vendors and stakeholders.
3. Improves Processes with Efficiency:
No matter what industry your business functions in, having a compliance management system is becoming essential to have. Research in the recent times has proven that companies embedding a solid compliance management system in their DNA are getting tasks done more efficiently.
4. Risk Management:
Every company faces a number of operational, strategic and financial risks. These risks get multiplied when there is a tough competition in the industry. All your actions and moves are noted down, criticized or praised, leaving little room for errors. Like every other struggling business, you too, would wish to be appraised for good rather than be criticized for bad and that is where a good compliance program comes into play. When companies follow all the rules and regulations set by the government, the chances of failure is minimized.
5. Offers Competitive Differentiation:
In a world where only the best reigns, all businesses – big or small – strive to aim for that first spot. A well-thought compliance management system serves as a differentiator between your company and the one that fails to comply. As a result, companies with an up-and-running compliance program drive positive outcomes, allowing them to set a benchmark against the competition.
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