Month: April 2016

Everyone knows staying compliant saves money. It prevents hundreds of thousands of dollars in regulatory fines. Beyond that, it seems that compliance only costs money. Time, effort and dollars go into keeping your organization compliant. If this is how you feel about your compliance program, there’s probably room for improvement. A compliance program should be saving your organization money.

Save on Reputation

A program that is out of compliance not only runs the risk of getting fined by regulators, it runs the risk of having those negative issues published to the media. Public media embarrassment could cost your organization in more ways than one. Having your reputation tarnished could ultimately result in losing customers, prospective employees and the time and money it takes to repair that reputation.

Employee Injury

There are many employees who have direct contact with regulated practices and thus, need to be trained. Without this key aspect of a compliance, program organizations are increasing the risk of employee injury. Employers pay almost $1 billion per week in workers’ compensations costs alone. A top-notch compliance program should provide constant training for employees and aid in discovering compliance mistakes before they happen. Ultimately, an adequate training and education program will help save on employee injuries and paid leave.

Greater Efficiencies

In addition to keeping employees safe, having an adequate training program and organized management plan helps streamline your program, make it more efficient and ultimately save on labor and process issues. The best compliance programs are those that not only teach the employee what to do but results in buy-in from the employees. Employees will help keep your program compliant rather than hinder it. One way to improve your program’s efficiencies is by developing a compliance calendar. This will help to report and assure regular tasks are done in a timely manner.

Get Your Free 30 Day Trial of Compliance Management Software Now!

How can we help?

360factors, Inc. helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates all risk, compliance and operational functions allowing to manage regulations and requirements, policies and procedures, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform. It enables automation through artificial intelligence. 360factors also offers consulting services in the areas of air, water, and waste permitting and compliance, site investigation and remediation, environmental and dredge material sampling and evaluation, engineering and geology, expert testimony, health and safety, and operational risk management. Its Managed Services incorporate outsourced risk and compliance services using Predict360.

 

Remain up-to-date on industry news / updates through our Twitter & Linkedin profiles.

*All images are property of their respective owners.

A CEO’s Perspective

The financial crisis which shook global markets and financial institutions worldwide has forever changed the landscape with an era of sweeping regulatory change. The new regulatory landscape is placing demands on financial institutions in such areas as corporate governance, risk appetite, capital adequacy, stress tests, operational risk, technology data and information systems, and risk culture.

 

Risk management must respond to “the new normal”—an environment of continual regulatory change and ever more demanding expectations.

The complete report and key findings from the ninth annual Global Risk Management Survey published by Deloitte University Press can be found here: Global Risk Survey

Key Findings:

• More focus on risk management by boards of directors. Reflecting increased regulatory requirements, 85 percent of respondents reported that their board of directors currently devotes more time to oversight of risk than it did two years ago.
• The existence of a chief risk officer (CRO) position has grown to be nearly universal. In the current survey, 92 percent of institutions reported having a CRO or equivalent position, up from 89 percent in 2012 and 65 percent in 2002.
• Ninety-two percent of respondents said their institution either had an enterprise risk management (ERM) program or was in the process of implementing one, an increase from 83 percent in 2012 and 59 percent in 2008.
• Roughly two-thirds of respondents felt their institution was extremely or very effective in managing the more traditional types of operational risks, such as legal (70 percent), regulatory/compliance (67 percent), and tax (66 percent).
• Fewer respondents felt their institution was extremely or very effective when it came to other operational risk types such as third party (44 percent), cybersecurity (42 percent), data integrity (40 percent), and model (37 percent).

Summary

Financial institutions are adjusting to the new environment for risk management. Most institutions will need to enhance their risk management programs to stay current— improving analytical capabilities, investing in risk data and information systems, attracting risk management talent, fostering an ethical culture, and aligning incentive compensation practices with risk appetite. Financial institutions will need to develop the flexibility to respond nimbly to the “new normal” risk management environment of unceasing regulatory change.

Info Source: Deloitte Touche Tohmatsu Limited

Remain up-to-date on industry news / updates through our Twitter & Linkedin profiles.

*All images are property of their respective owners.