7 Tips for Developing a Mature Compliance Strategy

A compliance strategy is all about managing risk and ensuring that an organization adheres to the regulations imposed on the industry it operates in. This area of an organization is controlled by a compliance officer, who oversees ensuring the business always complies with external and internal regulations.

Compliance strategy entails prioritizing certain investments and strategies above others to accomplish the most successful compliance program with the least amount of time, money, and effort. An effective compliance program is important in the US because it helps to reduce financial risk as well as protecting against other liability areas.

With a proper strategy in place, a company can ensure it has a better chance of long-term success and that external events are less likely to cause disruption. Author and compliance expert Alex Lysak, (read more) has written this guide for developing a mature compliance strategy.

Hire the Right People

No matter how good a compliance strategy might be, it’s not worth much if it doesn’t have the right people implementing it. The core of any compliance program should be identifying the right personnel as well as improving and supporting the abilities of the current staff.

With the proper personnel in place, a US organization will be able to quickly obtain, analyze, assess, and adapt to new regulations. Finance technologies, such as those researched by Scanteam, are particularly affected by regulations, and the right staff can make a world of difference.

Create a Risk Assessment

Compliance officers should also dedicate time and attention to the risk assessment as is necessary. A risk assessment should reveal the flaws of a compliance program and will also reveal a clear idea of what precise strategies would help the organization to accomplish the most effective compliance strategy example. Sustainable risk should also be measured in any risk assessment.

Understand the Regulations Affecting Your Industry

An organization may be subject to several local and international regulations at any time. Not only that, but these regulations can often change, meaning US businesses must pay close attention to the regulatory landscape no matter what.

Without keeping up to date with changing regulations, an organization can face serious issues such as fines or loss of business. Not only do compliance officers need to understand the regulator landscape, but they also have to be able to break down any rules, processes, and controls so that employees also understand compliance strategy implementation

Be Ready for Audits

A regulatory audit verifies that an organization complies with all applicable regulations and requirements. Regulatory audits are carried out by regulatory and governing bodies and are usually done at random to ensure that an organization is complying with the necessary requirements.

As a result, all US organizations should always be ready for a potential audit. A proper strategy should account for these and ensure that systems are in place to provide traceability and always demonstrate compliance.

Make the Most of Technology

The ultimate goal of any compliance strategy is to improve compliance while also saving costs to the organization. Making the most of technology is one of the most effective ways of doing this, as it can lead to better automation of certain processes. Automation saves money by reducing the amount of time staff spend on menial tasks, allowing them to focus on more important areas.

Better technology can also help to speed up manual compliance tasks, and it also provides better documentation. This is particularly important in the event of an audit, where documentation will need to be provided to regulators.

Work Closely with Regulators

The main purpose of US regulators is to stay on top of any non-complying organizations, but they’re also the first people to hear about changes to existing regulations. As a result, it’s important for organizations to work with regulators and include them in their plans.

If a company is intending to expand into a new market or develop some new innovation, it would be wise to involve regulators in any future plans. This way, the organization can ensure that its goals don’t fall foul of any regulations.

Provide Support to Your Team

When it comes to the regulations that an organization must follow, the level of support that compliance officers provide to staff will have a direct impact on how they respond to these regulations.

It’s unfair to expect the team to precisely follow regulations if they don’t receive the right guidance, motivation, and support. Considering the potential risks to a company if they fail to adhere to the regulations, this stage of the compliance gaining strategy is critically important.

Building a mature compliance strategy takes time, but by engaging with these tips and working step by step through the process, a company can establish a successful strategy. It’s also important that the company considers the ethics of its compliance strategy and whether the process is as cost-effective as possible.

Here is the author’s bio:

Alex Lysak is the CEO of ScanTeam. I have been working in online marketing since 2011, my main areas of expertise are marketing research, social media marketing, and SEO. During 9 years of experience, I have helped many products and startups to develop marketing strategies and to implement them further.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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