Compliance is a process that must be maintained constantly. Corporations must both study and comprehend a plethora of rules and regulations to fully comply, which they accomplish by establishing policies, processes, and activities to prevent and detect infractions.
Regulations in Abundance
There are a rising number of legal difficulties, such as labor payment and filing, SOX (Sarbanes Oxley), data privacy standards, antitrust laws, and international trade restrictions, among others, as governments place an increasing focus on compliance reporting. Corporations must adhere to these regulations to do business effectively and efficiently in their respective territories.
In the United States, the Sarbanes–Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act established much stricter personal accountability for senior business management over the integrity of reported financial accounts.
The United States Department of Labor’s Occupational Health and Safety Administration (OSHA) was established to maintain safe working conditions for employees by establishing and enforcing specified standards. The Fair Labor Standards Act (FLSA) establishes minimum pay and overtime requirements for salaried and hourly exempt and non-exempt employees. Employees are notably more receptive to work when they believe they are being fairly rewarded for their efforts and are secure within the organization’s reach. Proper labor compliance methods may help ensure employee satisfaction and that all complaints or concerns are addressed swiftly before they spiral out of control and harm the entire organization.
Conciliating all applicable rules, regulations, standards, and guidelines may be a full-time job in and of itself. Frequently, these requirements are somewhat confusing and imprecise. At times, the laws of several jurisdictions conflict with one another. This creates several opportunities for a mistake or omission-related mishaps. If vulnerabilities or violations of compliance are uncovered, remediation may take weeks or months.
Therefore, why should firms care about compliance?
Compliance is a straightforward concept: it entails businesses acting correctly. Despite this, it continues to be one of the most contentious issues in today’s business boardrooms. This is because most companies place a high premium on compliance management tools, which are highly reactive.
Reactive compliance refers to the way businesses respond to employees, customers, and partners following a breach. This is problematic since the harm has already been done, and the company faces litigation for flagrant violations. These compliance risks are not limited to financial penalties and fines; the consequences on public relations, market share, and shareholder value can also be catastrophic for the organization.
Practical, Sustainable Solutions
Streamlining compliance inside a company needs a well-tailored system focused on particular risk areas without imposing excessive constraints. The difficulty is how to do this — how does a firm go from a patchwork of regulations and policies spreadsheets to a centralized, standardized set of compliance controls?
Undoubtedly, there are obstacles. Employers must remain current on new legislation (e.g., paid sick leave) and modifications to existing legislation (e.g., minimum wage). With dozens of regulatory compliance requirements needing continual attention and action, firms might spend substantial effort assuring compliance with all of these laws — with no certainty of complete submission.
However, technological advancements have resulted in the creation of a solution: Automated Compliance Platforms. Automated compliance systems provide hassle-free tracking of all compliance activity. A robust automated compliance platform will aid in reviewing, documenting, monitoring, and auditing all critical functions from a strategic and operational standpoint. The benefits are immediate: an automated system eliminates any potential for human reporting mistakes, ensures compliance with current regulations, and eliminates the need to reinvent the wheel each time an audit or file is produced for reporting.
Automated compliance is no longer a luxury – it is a need for a successful organization. Corner offices must embrace this required solution to focus on productivity and profitability and avoid spending time and energy resolving the numerous compliance difficulties.
There are many distinct types of compliance technology solutions available and every company will be able to find something that fits it needs. Compliance platforms that operate on the cloud have emerged as one of the best options available for businesses of all sizes. Cloud solutions are being preferred because of the low costs associated with implementing and maintenance.
On-premise solutions are expensive to implement because they require hardware, networking equipment, as well as on-site experts provided by the vendors. Cloud solutions are run from the cloud and implemented from the cloud as well – meaning that most implementations do not require the presence of any implementation experts from the compliance solution vendor. Maintenance is also amazingly easy to manage in cloud solutions.