Blog Details

Author - Associate Megha Motwani

Compliance has many phases, which everyone must be aware of before mapping out the actual compliance program. In most cases, regulatory change presents real challenges and risks for entrepreneurs and growing businesses. As you expand into new markets, or offer new products or services, the numbers of rules that apply to you multiplies, and sometimes contradict, one another.

Therefore, when the companies are coming up with their policies and strategies in order to fulfill their need for compliance or are engaging in the compliance procedures must keep in their mind the following points:

1. Written policies and procedures

First, you need to have written policies and procedures. Once you figure out the standards of conduct and other policies that make sense for your compliance program, write them down and share them with everyone in your organization. Putting a binder of these policies on a shelf only to collect dust is not an effective compliance program. You have to update your policies periodically as your organization grows and changes. 

2. Compliance professionals 

There must be a compliance professional. Even the smallest organization needs to have someone who is keeping up with the federal and state compliance requirements and recommendations. If you have the resources, designate a compliance officer and empower that individual with independence, authority and a connection to people and information throughout the organization. 

3. Effective Training

The firm or businesses must carry out effective training and also educate the employees, must make sure that they understand your compliance program policies. The more creative and interactive you can make your training sessions, the better results you will get.

4. Effective Communication

Organizations must adopt a way to facilitate communication between the compliance officer or compliance contact person and all employees. Comment boxes, anonymous hotline, or even open-door policy are all great options. Give your employees some way to report misconduct ad to protect “those who do” from retaliation.

5. Internal Monitoring

The internal monitoring process includes conducting audits. You have to use some kind of review to evaluate your compliance efforts are working. A good compliance program will identify problems from time to time, if it doesn’t, that’s a sign that what you’re doing is not effective. If you detect something problematic, then you are in a position to do something about it.

6. Enforce your Standards

Make sure you enforce your standards: it’s not only about developing policies, distributing them, and educating your employees about them. You also need to make sure your employees are actually following them. Take action when you learn someone is not complying with procedures. 

7. Promptly respond to issues

You need to promptly respond to issues: when you get a report of suspicious misconduct or other problems, look into it right away, then take steps to resolve the issue as quickly as you can.