Compliance management is the process of
ensuring that a set of rules are being followed by employees. The rules are
referred to as the compliance standard or compliance benchmark, while the
process is what manages their compliance. Compliance management is crucial for
the successful working of every business. EXIN Consultancy brings for you the
information that you needed to know about compliance management.
Compliance management can take many forms. It can be a mix of policies,
procedures, documentation, internal auditing, third party audits, security
controls, and technological enforcement. Compliance
is a prevalent business concern, partly because of an ever-increasing number of
regulations that require companies to be vigilant about maintaining a
full understanding of their regulatory compliance requirements.
There are two methods for implementing
compliance management. They are:
1. The Ten Commandments
This model sets forth the rules and
vigorously punishes those who do not comply with the rules. There is often
minimal recourse for transgressions. This model is largely inflexible and
suffers from significant breakdown when there is room for interpretation. It
works well when there is little room for dissent regarding the compliance.
2. Quality Management
The Quality Management method allows
for judgement calls to be made in many circumstances, even though the
regulations may explicitly state that a rule is required to be followed. It is
generally understood that not every rule can be followed in every instance and
thus, exceptions must be made to allow the business to operate in the most
efficient way it can, while following as many of the rules as possible. This model
has been widely adopted and has been largely successful. This model is
especially important because many companies which are required to follow a
compliance standard often have multiple standards to follow, some of which may
overlap or conflict with one another.
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