Meeting and maintaining compliance has become an increasingly complex and cross-functional task. Although CXOs continue to play an important role in planning and enforcing regulatory compliance, it is no longer just their domain to keep things on track.
Many of his CXOs across the agency are looking for ways to dramatically improve regulatory productivity (i.e. how to meet compliance requirements at a lower cost).
According to a study by Deloitte, the operating cost spent on compliance has increased by approximately 60% compared to the spending levels.
Business owners and CXOs are constantly looking for ways to not only meet every compliance requirement, but also ensure the effectiveness of what’s already done. The increase in compliance-related costs, paired with a slow economy, and stagnant revenue have resulted in building more pressure in the already existing complexities of compliance.
However, there are various ways to ensure that you minimise this cost of compliance. With a little direction and the right technology, you can effectively manage compliance even with limited resources.
Tips for reducing the cost of compliance
Make compliance a part of your day-to-day work
Let’s start with something simple. When compliance becomes a part of your company’s day-to-day operations, there are fewer surprises.
Which can only work in your favour because every surprise comes with a cost when it comes to compliance. A change of course means lost time, potential new spending to mitigate newly discovered risks, and more.
Eliminate the risk of being forced to make sudden changes by empowering managers to run programs built on business ethics.This increases the responsibility of managers and encourages employees to carry out processes with the manager’s support.
A top-down approach, with senior management supporting strong policies, creates a trickle-down effect on business ethics, policy, and compliance that cannot be achieved bottom-up.
Focus on the future
Compliance is not a sunk cost. When you use the right people, processes and technology, it can have measurable returns and eliminates hidden costs that might come up in the future.
As business owners, you need to make effective decisions keeping your long-term goals in mind. By maintaining the foresight that compliance is an investment, you can efficiently navigate the murky waters of risk and compliance.
Monitor the changing risks
An effective compliance program is more than just identifying problems and taking corrective action. That’s important, but it’s arguably even more important to continuously monitor and anticipate potential compliance pitfalls. A proactive approach to compliance means that CXOs and staff can stay up-to-date with upcoming regulatory and industry changes and respond quickly to implement new processes where necessary.
As you identify and implement any necessary changes to your procedures in response to the changing risk landscape, ensure that your compliance controls are also updated to reflect those changes. It is much cheaper to implement changes before they are needed than to go back later and fix the violations and fix the problem.
In today’s digital world, it’s easier than ever to track what regulators are doing. Subscribing to resources from regulators and industry thought leaders and participating in industry conferences can actually save your organisation money by reducing costly iterations.
Make use of technology
Collaboration cloud technologies can save you time and money in many areas. The right tool can not only help you easily track everything, but also automate a lot of your current manual processes. Solve multiple challenges at once, including:
- Compliance risk management and reporting
- Reduce process inefficiencies and improve time and resource management
- Accurately process and analyse data and limit human error
- Empower compliance teams to move from checkbox compliance to value-added work
The cost of compliance has spiked over the past decade.
As a result, the industry has become more resilient and more attention is given to overall risk management. However, current resource-intensive approaches to compliance management are not sustainable in the long term.
Relying on manual processes is no longer enough to keep going. Making use of the right technology is your sure shot way to ensuring that all compliances are met without exhausting your resources on it.