Innovatecompliance

Besides automation, a good compliance system must have morals and ethics incorporated into it, something a software application cannot do.

In the digital age, with overwhelming growth of information and fast pace of changes, the knowledge life cycle is significantly shortened. The digital workforce today has to practice real critical thinking, learn and relearn all the time, and then apply those lessons to succeed in new situations. 

Either individually or collectively, performance and compliance are the two sides of the coin, critical thinking as an important cognitive process is the very clue to enhance both disciplines for making sound judgment to prevent or solve problems effectively, and driving progressive changes smoothly.

Critical thinking is crucial to improve compliance maturity: Compliance is the management discipline of designing and implementing effective steps to ensure that the organization actually complies with the laws and regulations relating to its operations. Compliance should be in the frontline of developments to provide guidance to the business, not only what they cannot do, but they can also point into the direction of alternatives and opportunities within the regulatory frameworks. Critical thinking as the skill for analyzing, synthesizing, evaluating, and producing coherent argumentation by examining inference is crucial to improve compliance maturity. It spurs thought-provoking debates such as: How to strategically align compliance as part of the overall process to manage risks?

How to make compliance and risk management work more effectively, how do they cover the areas that cross over? How well do they cover the gaps? Can you really understand the risks in a solution if you don't understand it from end to end? People, process, technology, what’s the weakest link in compliance practices? What's the correlation between performance and compliance? There are a number of activities that need to be carried out to make proactive compliance possible. It’s important to leverage critical thinking to point out the real problems, apply objective rational analysis to assess the maturity of compliance discipline, optimize processes and procedures, and enhance overall GRC discipline.

An effective compliance platform provides a framework for setting good policies, improving processes and ensuring overall compliance coherence: Compliance obligations is a mostly unrewarded risk, something you have to do and keep the regulator off your back to ensure your business maintains its license to operate. Thus, evaluating risk for compliance obligations is needed to better manage compliance programs effectively. Traditional compliance management is largely as a means to preserve value, rather than to create value. Organizations must seek a process for collaboration, accountability, and most importantly, integration of policy-setting and processes to make compliance more proactive.

An effective compliance platform carries high-level accountability and provides important input into the feasibility and appropriateness of policies that have a direct impact on the architecture. The management then works with implementers to ensure they provide solutions that move toward proactive compliance. Ensuring and overseeing compliance is an essential part of the governance body. There’s a correlation between corporate governance and business performance. GRC should influence the level of performance of all the members of the company.

Compliance is very much a strategic issue: Companies that do not recognize this are blindfolding to a great extent. Compliance is or should be more than just looking at internal directives, it is also about looking at the outside world - how the world and society are developing; If the organization does not take this into consideration and advice, the governance bodies such as corporate board may disregard external sentiments or external social and political developments, so their policy-making could be outdated or biased to a certain degree.

The effective compliance tool monitors change, alerts the organization to risk conditions, and enables accountability and collaboration around changes impacting each firm. To make compliance more strategic rather than tactical only and improve its maturity, it requires a common process to deliver real-time accountability, enhances transparency across regulatory areas with a common system of record to monitor regulatory change, audit and measure the impact, update policies, implement appropriate corrective actions, and provide training for certain personnel.

The emergence of a compliance mentality among corporations has been one of the strongest deterrents to genuinely constructive corporate governance known. Besides automation, a good compliance system must have morals and ethics incorporated into it, something a software application cannot do. Having a good understanding of the business vision and mission will ensure that an appropriate compliance management discipline is realized without being bureaucratic or misaligned with business objectives. Governance as an integral component of GRC not only provides bottom line impact on “keeping the lights on,” but identifies opportunities for business growth and societal advancement.

Posted in: GRC,Strategy