Many people in business hear the term compliance management and think it has something to do with financial regulations. That’s only partially correct. Compliance management is the process of ensuring that an organization adheres to all applicable laws, rules, and regulations. This includes not only financial regulations, but also health and safety regulations, environmental regulations, and more.
Compliance management is a broad term that encompasses a number of different activities, including policy development, risk assessment, auditing, and training. Let’s take a closer look at each of these activities.
One of the most important aspects of compliance management is developing policies and procedures that ensure compliance with all relevant laws and regulations. These policies and procedures need to be regularly reviewed and updated to make sure they are still effective.
Another important aspect of compliance management is conducting risk assessments. Risk assessments help organizations identify areas where they may be at risk of non-compliance. Once these risks have been identified, steps can be taken to mitigate them.
Compliance audits are another important part of compliance management. Audits help organizations identify areas where they are not in compliance with applicable laws and regulations. After an organization has been audited, they can put corrective measures in place to ensure compliance going forward.
Training employees on compliance-related topics is another key element of compliance management. Employees need to be aware of the policies and procedures in place to ensure compliance. They also need to know what to do if they witness or suspect non-compliance.
Compliance Management Systems
Another tool that can be used for compliance management is a compliance management system (CMS). A CMS is a software application that helps organizations manage their compliance-related activities. CMSes can be used for tasks such as policy development, risk assessment, auditing, training, and more. Connected Risk’s Compliance Management module is one such example of a comprehensive Compliance Management System (CMS).
There you have it! This is just a brief overview of what compliance management is and why it’s so important. There’s a lot more to learn if you want to get into the details—but this should give you a good starting point.