There are copious laws and regulations that govern industries around the country. If your business is found in violation of one of these laws, "I didn't know!" is not a valid defense.
Your business could be slapped with fines or fees that will impact your bottom line, perhaps even causing layoffs or closure. In order to avoid this catastrophic event, t is critical for your company to create and maintain compliance management processes.
Compliance management is an integral part of any successful business. Admittedly, it is difficult to keep abreast of all the various laws and regulations that apply to your business. There are solutions to help your company stay on track.
Are you feeling overwhelmed by new or numerous laws that you need to follow in your industry? Read below for information and guidance on how to implement compliance management for your business.
What Is Compliance Management?
Laws and regulations that affect businesses include employment, environmental, taxation and more. Depending on the industry your business falls under, you might face local, state and federal regulations that need to be followed.
Compliance management is a process that ensures your business is complying with relevant laws and regulations. The process consists of various policies and procedures.
The compliance management process will be created by principles in your company and specifies procedures that must be followed by employees, vendors and customers. Supervisors and officers should work together to create a compliance plan and ensure it's being followed.
It is critical that your business put a compliance management process in place. Protect your business against unforeseen fines and fees.
How Do Businesses Implement Compliance Management Processes?
Again, it depends on your specific industry. The banking world faces different standards and requirements from the auto industry. It is important for every company to explore and understand their regulatory environment.
There are a number of ways to examine your business for healthy compliance practices. Some of these may be required by law, while others will help you maintain best practices throughout your company.
Internal and/or Third-party Audits
An audit is an examination of accounts or procedures. Audits are most commonly conducted for financial purposes but can be done for compliance as well. Many companies will conduct a thorough internal examination before submitting to an official, independent audit by a third party.
Clear Security Procedures
Whether it's security of a physical plant or digital data, most businesses need to think about protecting their assets, employees, and clients. Creating clear procedures around safety and security is an integral part to compliance management.
Employment Policies and Practices
Employment laws are complex and often cause anxiety for supervisors. Draft a straightforward policy for managers that follows all applicable laws, as well as an employee handbook.
A lot of compliance management involves looking ahead - what regulatory changes are in the news? Is your business or industry growing? Instill a regular practice of visiting these questions and more to locate risks before they're upon your company.
Documentation and Reporting
It is important to maintain clear records. It is equally important to report those records to the people who need to see them. Regularly scheduled documentation and reporting will help ensure your business is in compliance.
Create Communication Channels
Employees and clients may notice problems before you do. You need to have a process by which people can contact you to report risks or infractions.
Everyone who comes into contact with your business - employees, vendors, and customers - needs to be aware of applicable regulations and the consequences of breaking them. Have a clearly stated list of rules and enforce them across the board. Nothing hits morale like seeing different treatment for different people.
Here at Alura we understand the difficulties of creating a strong compliance management system. We offer help with these services and more.
Benefits of Compliance Management
You're busy running your company or firm, and you already have a lot on your plate. Why add this huge process to your to-do list?
Compliance management will benefit your company in many ways, including offering peace of mind that you're meeting and mitigating risks.
Avoid Legal Problems - The main benefit of a robust compliance management process is avoiding lawsuits or fines from regulators. Facing legal issues is not only expensive, it will impact your company's reputation as well. Create a compliance management process now in order to save time, money, and heartache later.
Increased Safety - Rules and regulations may seem daunting sometimes, but they are there for a good reason. Protecting the safety of your employees, your clients, and the environment are the responsibilities of all well-run businesses. Implementing compliance plans will help your business avoid accidents and liabilities.
Data Security - One of the biggest problems facing many industries today is a data breach. Hackers have hit financial firms, hotels, and retail chains, with grave consequences. Don't let this happen to your company - build strong data security practices to thwart a data breach.
Employee Retention - Staff training and education help keep your employees feeling comfortable that they are doing a good job. Good communication also makes employees happy. Avoiding turnover will have a positive effect on your bottom line.
Build Trust With Your Clients - Running a safe, lawfully compliant business helps create and maintain your company's good reputation. Customers tend to vocally review companies online when something goes wrong, driving clients away. You can build trust and goodwill by putting compliance management practices into place.
Solutions for Your Business
Complying with laws helps protect your business as well as the safety of your employees and clients. It's an important part of maintaining a strong reputation and avoiding risks to your company.
But with so many different regulations and government levels, it's difficult for small businesses to keep up on everyone.
You don't have to face this complex process alone. Alura can help. We offer a range of services to ensure compliance management at your company.
Our business is protecting your business. Contact us today.