Several organizations have a robust Compliance Management System (CMS). To enhance their existing systems, they need to find ways to keep pace with the rate of change. It frees institutions to concentrate on strategic initiatives while being exam ready.
On the other hand, Compliance Officers more efficiently manage the day-to-day details of Compliance Management. Compliance Officers and their staff should prioritize key elements to streamline the process of compliance.
Though there are many ways to design a robust CMS, the four key features are---
- A change in Management.
- Good Collaborations across the departments.
- Records and Reports should be exam ready.
- Changes and approvals on tracking policy.
- A change in Management:
There's always a crisis of time for every Compliance Managing Person. Due to lack of time for Compliance Officers, they find it quite challenging to track and ready every regulatory change—and then still find time to implement them.
It is vital to have tools to review, monitor, and interpret new rules to understand that will affect the institution to streamline a CMS. Once the rules are identified which will be applicable, affected areas of the Financial Institutes are informed accordingly. Plan for developing new or updating existing policies and procedures should be developed using a standardized process.
- Good Collaboration across the departments:
“Anything that happens in compliance doesn't stay in compliance.”
Every employee plays a role in ensuring policies at your Finance Institute and procedures are followed. Thus, Finance Institutions remain compliant.
When a culture of compliance starts at the top with the board and management, this works best. When the board and management clear the high priority of compliance, it motivates everyone to work towards compliance efforts.
- Records and Reports should be exam-ready:
"If you didn't document it, it didn't happen," that's what the Compliance Management System means.
Thus, a streamlined CMS documents the Compliance Management process by taking this statement to heart & making it easy to record. The board, management, and examiners should see how the tasks are managed, what's being done, and by whom. Thus, systems, including task management, should be standardized and centralized, which will quickly help the authority of an organization to keep an eye on the communication process.
A Centralized Repository in an Audit Trail is also a necessity. Though mistakes are inevitable, they shouldn't be a surprise. Whether an institution is following policies and procedures can be known through its documentation process. Careful documentation shows remediating problems as they arise.
Finding errors by examiners can question the entire CMS—and result in enforcement actions and fines. Instead of relying on systems that can oversee the task, too many Compliance Officers waste hours tracking down individuals, persuading them to complete and log activities.
- Changes and approvals on tracking policy:
It is easy to stay on top with the help of a streamlined CMS that documents this process, ensuring that policies and procedures are up-to-date and that every employee is working off the most recent version.
A regulatory requirement of a CMS is the board and management, making it crucial. Financial Institutes can demonstrate that the board and management oversaw the development and update of compliance policies and procedures and that they've signed off on them.
If Financial Institute employees provide non-compliant products and services, this will result in compliance violations with failure to track policy changes and approvals.
Are you embraced with these four key elements? If not, think about increasing efficiency and reducing compliance risk by streamlining your CMS. COMPLIANCE iNBOX (CiB) helps businesses take care of their GRC (Governance, Risk, and Compliance) needs.
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