Introduction
Every organization, a start-up, or an old existing firm working in the market, maintains some brand value. This brand value is also related to the company’s reputation and customer perception of its products and services. This has to be developed over some time. It depends on what kind of policies the company follows. Implementation of the right policies is important for the success of any organization. It keeps the organization in check and limits it from doing anything that is beyond the purview of society and sustainable development.
Defining Regulatory Compliance
Regulatory compliance is a work culture of following the laws, policies, and regulations mentioned by the government. Regulations can be different depending on the industry. Large industries like finance, healthcare, and information technology(IT) have to follow more complex regulations as they have an impact on the economy and other businesses. The regulations also increase as the business increases.
Why Need for Regulatory Compliance?
Regulatory compliance is necessary for protecting stakeholders and the business, as it prevents the organization from engaging in any activities that could harm the customer. Industry-specific laws and regulations require even specialized organizations to implement them. It helps the business to operate in an open and transparent environment. This helps to foster trust and loyalty amongst customers. Customers keep a knowledge of the company’s stock alerts and invest in the company shares.
8 Methods of Improving Regulatory Compliance
1. Be acknowledged for your compliance
Organizations must be acknowledged with what their staff is entitled to. What is their role and what things are non-negotiable. They must work within these policies and should know what they comply with e.g. financial, legal, Information technology security, environment, etc. In this, they can take the help of regulatory compliance associates.
2. Know your employees
The organization must know their employees, as to who is complying with the policies and who is not. Is there any legal action required for those not complying.
3. Make relationships
A good compliance system is where everyone works together and no one person is made responsible for compliance. For this good relationships between departments must be there.
4. Make use of technology
Using the latest technology and implementing it to streamline the process of compliance. This prevents redundancy and keeps the system simple. It checks on every employee if they are following compliance or not.
5. Have business acumen
The owner must know their business well. They must know the departments properly like marketing, supply chain, finance, operations, etc.
6. Work with your employees
Go through your compliance documentation like policies, processes, and procedures. They should make sense to everyone and not only to a few people. It should be simple to understand.
7. Do compliance training
Properly train your employees to understand the policies and use statistics to implement them. Tell them about the actions to be taken when not following compliance. It must be made sure that they follow the policies that are maintained by the organization.
8. Maintain the standards of the industry
Your compliance should be of industry standards to ensure that all processes are implemented correctly and updated with the latest standards. That will put your company on par with the other companies in the industry.
Benefits of Regulatory Compliance
1. No Legal issues
When companies follow regulatory compliance, it is ensured that all legal priorities are met. The reports as given by regulatory bodies must be in favour of compliance. This will help them to have a good reputation.
2. Promoting safety at the workplace
Implementing compliance policies makes sure that employees work within their given limits. No harassment should take place and every employee must have the right to perform freely. It also prevents accidents at the workplace.
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3. Working with healthy competition
Using regulatory compliance can remove unfair activities and can ensure a healthy working environment. Organizations provide quality products and services and avoid any kind of fraudulent activities.
4. Having good market value
By having compliance policies, companies operate in a risk-free environment, this enables them to ensure that they are not preventing the customer from any right. The customer feels protected and this helps to maintain good relations with the organization.
5. Increasing profit
By following compliance, organizations can have good relations with the customers and can retain their faith and loyalty. This will help grow their business and they can have sustained profits. They can hire a buy-side brand marketer who can promote the brand value along with regulatory compliance.
Conclusion
Having a robust regulatory compliance services can help companies grow their business in a healthy environment. They can have sustainable development. Companies must train their employees to follow the policies and laws implemented under compliance to have a good reputation.
FAQs
1. What can technology provide while implementing compliance?
By using software that works on compliance, it can streamline the process, and monitor audit and report making. It can check the employees who are following compliance.
2. What challenges are there in achieving regulatory compliance?
Challenges include fewer resources, complex regulations, and no proper training.
3. How can we ensure ongoing compliance?
Make a continuous monitoring system, keep knowledge of regulation changes, and built a culture of compliance within the organization.
4. Are there any penalties for not following compliance?
Yes, there can be penalties from fines to legal actions for not following compliance.
