Role of Top Management in Regulatory Compliance

If you observe the results of various regulatory compliance surveys across multiple industries, the results of most of the surveys are pretty similar, however some of the results were quite disturbing. When asked about top management’s perception towards regulatory change management and regulatory compliance, management viewed it as a necessary evil and you would see comments such as:

“management views regulatory compliance as a deterrent to making the firm’s revenue objectives,”

“there is inadequate commitment from senior executives,”

and

“there is inadequate authority and empowerment from senior management,” etc.

This indicates that many firms, irrespective of which industry they are in, do not consider their firms to be complying with the requirement and do not provide the necessary authority, empowerment, independence and adequate resources to their regulatory compliance professionals to meet regulatory compliance objectives.

How to Ensure Regulatory Compliance in Today’s Complex World

 

I am not going to get into the consequences on non-compliance; that is another topic all together. This blog will focus on what top management needs to do mitigate their risks, increase reliability and sustainability.

The key is that top management needs to change the way they think and that begins with a belief system. They need to believe in the fact that effectively addressing regulatory change management issues will reduce their risks, increase reliability, sustainability , quality and yield a ROI long-term in the form of reduced OPEX, increased efficiency and productivity, margin expansion resulting from employee safety, reduced employee turn-over and building quality products. Once the belief and commitment at the top is there, management will chase the right activities that meet regulatory change management and corporate objectives.

Predict360’s Regulatory Change Management Software is built on artificial intelligence (AI) technology, which centralizes regulatory library with consistent taxonomy and automates the translation of the regulations as well as create an applicability of regulations process as to which regulations apply to which location, branch or even an asset.

About the Company

360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.

360factors EHS Services offers environmental consulting services in the areas of water, 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.

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