Thinking Forward: Compliance Management for 2024 & Beyond
Last Updated: January 30, 2024
Traditional approaches to compliance management are no longer sufficient and can expose your business to expensive penalties for failure to meet compliance standards. One prevalent issue is the inclination towards an auditor-focused strategy, where mere checkbox compliance may fall short in addressing evolving risks. Relying on past performance as a gauge for current status poses another pitfall, potentially leading to oversights in the dynamic regulatory landscape. The complexity of compliance issues further complicates matters, necessitating a robust system for tracking and resolving issues promptly. Duplicate efforts in compliance control testing, stemming from fragmented systems, only add to the challenges, wasting valuable resources and introducing the risk of inconsistencies.
At LogicManager, we promote a proactive, integrated, and collaborative approach to compliance management. Upholding fiduciary duty, adopting an integrated methodology, actively managing gaps, fostering collaboration, and providing holistic protection to the business are paramount. By having the right processes in place, businesses can mitigate legal and regulatory risks, safeguard against potential liabilities for the board, and navigate the dynamic landscape of compliance with confidence in 2024 and beyond.
Successful Compliance Management Programs Focus On:
Upholding Your Fiduciary Duty
Upholding your fiduciary duty means acting in the best interests of the organization and its stakeholders. In the context of compliance management, it implies that those responsible for compliance must make decisions and take actions that prioritize the legal and ethical obligations of the organization, ensuring its financial and operational integrity while protecting the interests of shareholders, employees, and other stakeholders.
Taking an Integrated Approach
Focus on creating a comprehensive and unified method for managing compliance across your organization. Instead of treating compliance as a series of isolated tasks, an integrated approach means that compliance requirements are woven into various business processes. This approach helps ensure compliance is not seen as a separate burden but as an integral part of daily operations. It looks to avoid focusing on past performance.
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Identifying and Managing Gaps
When managing compliance, your organization needs to have effective processes for identifying and addressing compliance issues and findings. This involves the systematic detection of non-compliance or vulnerabilities, followed by structured procedures to resolve these issues to ensure that the organization remains in compliance with relevant laws and regulations. By integrating a risk-based approach into issue management organizations can better allocate resources to the events that pose significant problems. The new way will help to reduce fraud, waste, and negligence.
Encouraging Collaboration
Collaboration in compliance management means that different teams and individuals within an organization need to work together to meet compliance requirements. An integrated approach allows you to coordinate your efforts to drive risk-based control testing ensuring the organization’s overall readiness.
Adopt a Forward-Thinking, Risk-Based Approach to Compliance Management in 2024
One of the primary objectives of compliance management is to safeguard the business from legal and regulatory risks. With that said, most organizations will never be 100% compliant. Since the board can be liable for failure of oversight you must ensure the right processes are in place to avoid fraud, waste, and negligence. LogicManager’s Compliance Management solution will help your organization adopt a risk-based approach, empowering you to manage tomorrow’s surprises today. By bringing a proactive and forward-thinking approach to your compliance activities, your organization will stay agile, promptly adapting to new regulations to avoid non-compliance risks. Speak with one of our risk experts to learn how LogicManager can improve your compliance management program.