A compliance management system allows for a well-connected work environment by bundling important workflows in one digital platform. This is crucial in companies with many employees as it makes it easy for the right people to get the information they need at the right time.
This can also reduce risks from internal compliance issues like misinterpreting rules, regulations, or specifications. An effective CMS involves regular exchanges about training and everyday procedures.
Identify Risks
The compliance management system is an integrated system made up of activities, procedures, checks, and written instruments that helps a corporation comply with legal requirements and lessen consumer harm as a result of breaching the law. A good compliance management system will include a process for identifying risks. This can be done through a risk assessment or audit, where you examine internal policies and procedures to identify areas of concern. This will allow you to implement controls and validate them through testing, which can help reduce the likelihood of non-compliance surprises down the road.
You will also want to consider the potential impact of each identified risk. This can be measured in qualitative or quantitative terms. Qualitative assessments are often subjective, whereas quantitative assessments provide actual or estimated impact data. For example, a business may calculate the cost of lost productivity to determine the impact of a security breach or loss of critical customer information.
A consistently compliant business will benefit from a better reputation with customers and employees. A record of compliance can prevent legal action that could harm a company’s reputation and save on costs from fines or closures resulting from violations. Compliance management software can help companies comply with industry regulations, such as the need to capture and archive instant messaging conversations.
Communicate
A compliance management system is more than software – it’s a set of rules, documents, processes, internal controls, and tools that ensure adherence to legal and industry requirements, organizational policies, and environmental, health, and consumer standards. The system must include a robust communications process that ensures employees receive important messages and documentation in an easily digestible format and know deadlines.
The best compliance management systems use automation to provide the right information at the right time. They help companies monitor risks, alert managers to potential issues, and generate reports quickly. They also make it easy to assign tasks and send reminders. The result is a more efficient and effective operation that allows the company to keep its focus on what’s most important: serving customers.
The system also enables companies to communicate their compliance credentials to the outside world by posting them on their website or in recruitment adverts. This shows that the company takes responsibility seriously and helps attract employees, especially millennials, who are more interested in workplace sustainability than previous generations.
Train
An effective compliance management system minimizes your risk of hefty non-compliance fines. It also helps you keep up with governmental regulations that can change anytime.
To get the most out of your system, evaluate employee survey results and business reports to identify the areas where your strategy needs to be updated. For example, investigate why and make changes if your customer service team has low certification completion rates.
Using a software platform, you can create a flexible, user-friendly environment that allows your employees to access the training materials they need on their terms. This is especially important if you work in an industry where your workforce doesn’t sit at desks all day, like hospitals.
A good compliance software solution allows you to upload documents into a single repository. It allows you to edit content in real time so it stays updated with any changes to policies or regulations. You can also save on travel, venue, and instructor costs by bringing your training online.
Monitor
Every business has a specific set of rules and regulations that it must adhere to. This includes state-imposed regulations, industry standards, and federal laws. Keeping up with these regulations is difficult, especially when they change frequently.
This is where a compliance management system can help. This software program brings all the tools, processes, and written documents together to make it easier for your organization to maintain its compliance with regulations. A CMS helps limit the risk of harm to consumers caused by non-compliance and minimizes the time needed to review and track compliance.
A good CMS has several features, including tracking compliance-related tasks in a centralized repository, automating framework and task routing, and sending reminders. Additionally, it allows you to generate actionable and data-rich reports in minutes and collaborate with teams easily. It also offers cost-friendly pricing and great customer support.
Report
When it comes to a compliance management system, transparency is key. A digital platform that houses your information, guidelines, and documents makes it easy to track all compliance actions. This is important in a breach and protects against recourse claims.
Employees can report potential violations to an assigned person when they have a CMS. These reports are tracked and reviewed, and any discovered non-compliance issues are addressed immediately. This helps to ensure that your company maintains the highest level of compliance.
A good CMS requires time and money to create, implement and maintain. The benefits, however, far outweigh any initial costs. Using a CMS can help you stay audit-ready with CFPB examiners and improve your internal processes to reduce risk. Investing in a compliance management system is one of the most important things you can do for your business.
