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Find out how Lexis® GRC, our company-wide online and integrated software tool, can support your governance risk and compliance requirements.
Compliance policy - why do we need one?
Effective governance, risk and compliance (GRC) requires a holistic, organisation wide approach to ensure that a company acts ethically and in accordance with regulatory requirements. Compliance is not a “tick-the-box”, rule-based process but one that should be embedded into organisational culture and business solutions.
A comprehensive compliance policy and programme are essential tools to set out an organisation’s commitment to compliance and detail the expectations of all stakeholders, providing a clear strategy for managing risks involved in business. Where non-compliance can result in financial penalties and even imprisonment, a compliance policy and programme can guide day-to-day actions, assist in developing a culture of compliance and protect organisational reputation.
What is a Compliance Policy?
A compliance policy includes a policy statement that highlights the importance of the compliance function. This brief statement formally communicates the organisation’s commitment, philosophy and compliance risk appetite. The compliance policy will also set out the roles and responsibilities of stakeholders, as well as the structure, authority and methodology that will be used in adherence to the Compliance Policy. The conception of this policy requires management input and governing body approval followed by clear communication of the parameter to all staff and consultants. The Compliance Policy should be reviewed and updated periodically.
Why implement a Compliance Programme?
Taking the policy a step further and creating a compliance programme will assist staff and stakeholders in their compliance efforts. The Compliance Programme details the roles and responsibilities of stakeholders, tasks and actions required, clarifies high regulatory risk and compliance areas to be prioritised and encourages the adoption of compliance as a part of organisational culture. Training, resources, channels, monitoring and performance indicators are all integral to the development of an effective and comprehensive compliance programme.
With GRC arguably one of the most impactful and important business requirements of an organisation, having a comprehensive compliance policy and programme in place is just the first step in the process. Implementation of the programme and adherence to the policy set in place often involves the use of manual and disparate tools and processes that can be inefficient and untenable. Prioritising the move to an holistic, integrated digital system will provide insight and oversight to stakeholders ensuring cohesive risk management, leading to business sustainability.
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We can arrange a Lexis® GRC demonstration, or have a look here for more information on how our product can support your compliance policy efforts.