Why is it important to my business?

Compliance obligations can be mandatory (e.g. Acts and Regulations), or voluntary (e.g. contractual relationships, codes of practice and agreements and even expectations of third parties). Voluntary undertakings become compliance obligations once an organisation decides to adopt them.

Whether mandatory or not, it is important that an organisation’s compliance management framework is sufficiently robust to support an increasingly complex regulatory environment. Every organisation, big or small should have frameworks, policies and processes designed to manage, monitor and report on compliance and to minimise the potential for breaches, fines or penalties, or loss of regulatory accreditation.

These should be developed in accordance with the guidelines outlined in the International Standard on Compliance management systems (ISO 19600). Operating a compliant organisation lays down expectations for employee behavior, helps staff stay focused on the organisation’s broader goals, and helps operations run smoothly. This process should be ongoing. However, when things go wrong, directors and senior leadership must ensure that appropriate remedial action is taken to address instances of non-compliance and learn from any mistakes made.