Compliance as a strategic issue, is or should be more than just looking at internal directives. It is also about looking at how the world and society are developing.
Ensuring and overseeing compliance is an essential part of the board's role, a good corporate reputation to be seen as a good corporate citizen is one of the biggest assets of a company and most definitely a value creator.
Compliance is very much a strategic issue: Companies across the vertical sectors that do not recognize this are blindfolding to a great extent. Compliance Management covers all relevant laws, regulations, internal standards and policies. It stands to reason to assume that the laws, regulations, internal standards and policies imposed on or adopted by a company are the source/ starting point for the definition of any underlying operational and system process to remain compliant.
At a high maturity level, compliance focus should more naturally shift in line with the view of the market. This means that compliance is not only telling the business what they cannot do, but they can also point them into the direction of alternatives and opportunities within the regulatory frameworks. At the Board level, it requires a strategic and forward-looking perspective, dealing in uncertainty, if it is to add real value - challenging conventional wisdom, 'thinking the unthinkable' and asking the unpalatable question to generate multifaceted corporate value from effective compliance management.
Co-operation between compliance & Risk Management: Risk and compliance should work really closely in order to create multifaceted business value such as stakeholders’ value, brand value, social value, etc. In practice, as risks and compliance management typically require different skills and mindsets. That does not mean, there should not be close co-operation between the two areas. The BoDs, senior management, legal professionals, and compliance committees should ponder deeper: What’s the weakest link in compliance practices? What's the correlation between performance and compliance? How to make compliance and risk management work more effectively, how do they cover the areas that cross over?
Increasingly, compliance does have an impact on strategic matters. Organizational leaders and legal professionals need to view that strategic risk is a topic for the full board - not only to identify and address key risks but to understand and convert the best of them to opportunity management. More importantly, they should use the same methodologies and talk the same language for compliance and risk management..
Integral GRC disciplines: Many have been advocating integrated GRC for years, the GRC professionals should make an objective assessment of their GRC discipline maturity: What’re the gaps between governance and risk, risk and compliance management, How well do you cover the gaps? Can you really understand the risks in a solution if you don't understand it from end to end? How integral are your organizational GRC principles, processes, practices? Etc.
Governance, risk management, compliance perhaps require a different set of specialism, but they are also interconnected, so integrated GRC includes more vital business perspectives, each providing a check and balance on the others. People, process, technology, are all crucial ingredients in optimizing processes and procedures, building and enhancing strong GRC for producing high performance results.
Compliance is or should be more than just looking at internal directives. It is also about looking at how the world and society are developing. It’s a strategic imperative to set good policies, enforce laws, leverage effective compliance tools, monitor change, alert the organization to risk conditions, enable and reward accountability around changes impacting each firm to improve organizational maturity and advance human society.
At a high maturity level, compliance focus should more naturally shift in line with the view of the market. This means that compliance is not only telling the business what they cannot do, but they can also point them into the direction of alternatives and opportunities within the regulatory frameworks. At the Board level, it requires a strategic and forward-looking perspective, dealing in uncertainty, if it is to add real value - challenging conventional wisdom, 'thinking the unthinkable' and asking the unpalatable question to generate multifaceted corporate value from effective compliance management.
Co-operation between compliance & Risk Management: Risk and compliance should work really closely in order to create multifaceted business value such as stakeholders’ value, brand value, social value, etc. In practice, as risks and compliance management typically require different skills and mindsets. That does not mean, there should not be close co-operation between the two areas. The BoDs, senior management, legal professionals, and compliance committees should ponder deeper: What’s the weakest link in compliance practices? What's the correlation between performance and compliance? How to make compliance and risk management work more effectively, how do they cover the areas that cross over?
Increasingly, compliance does have an impact on strategic matters. Organizational leaders and legal professionals need to view that strategic risk is a topic for the full board - not only to identify and address key risks but to understand and convert the best of them to opportunity management. More importantly, they should use the same methodologies and talk the same language for compliance and risk management..
Governance, risk management, compliance perhaps require a different set of specialism, but they are also interconnected, so integrated GRC includes more vital business perspectives, each providing a check and balance on the others. People, process, technology, are all crucial ingredients in optimizing processes and procedures, building and enhancing strong GRC for producing high performance results.
Compliance is or should be more than just looking at internal directives. It is also about looking at how the world and society are developing. It’s a strategic imperative to set good policies, enforce laws, leverage effective compliance tools, monitor change, alert the organization to risk conditions, enable and reward accountability around changes impacting each firm to improve organizational maturity and advance human society.
1 comments:
This is a wonderful article. Thank you for providing all of the important information on corporate compliance management .
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