When it comes to regulatory compliance, an organization`s legal requirements are twofold. First, to ensure compliance with established laws and regulations so that a company can operate in a reputable manner in a particular jurisdiction. Second, the implementation of robust internal compliance systems imposed by a legal department in accordance with rules and processes. In contrast, compliance focuses on the part of “letting things go right or wrong at all.” An easily overlooked step in assessing regulatory compliance is to schedule regular audits across the organization. This goes beyond your staff and ensures that all automated filings work as they should, that there are no new deadlines or regulations you need to be aware of, and that your processes remain up-to-date and accurate. Make sure you have access to real-time data about your entities at all times to get an overview and be prepared to make any necessary changes as a result of the verification process. I`ve always said, “Compliance is what you should do, legality is what you can do.” It sums up my experience of legally finding smart and completely legal ways to circumvent or obfuscate compliance issues. By working closely with compliance, a legal department can ensure that the organization operates both efficiently and ethically. o Put in place systems to effectively identify, track and store instances of non-compliance, while allowing stakeholders, including customers and suppliers, a simple process to initiate appropriate corrective actions. While lawyers advise on legal law and best practices, it is the responsibility of compliance professionals to develop compliance controls, procedures, policies and systems to ensure that the business operates within clearly defined parameters. There are solutions like Exact Synergy that provide companies with a scalable software solution that enables business process management by bringing every person, document, and activity together within the organization.
This allows organizations to ensure that everything related to compliance can be easily recorded and monitored, meaning employees spend less time managing compliance and more time contributing to the company`s success. Apply blockchain technology to your investment portfolio or real business with expert legal advice Failure to ensure compliance can result in a company not only violating regulators, but also facing fines, censorship, reputational damage and, in some cases, even at the prospect of jail time for directors. A sufficiently comprehensive regulatory compliance program should include seven key elements, as recommended by the Office of the Inspector General (OIG) of the Department of Health and Social Services: rigorous regulatory compliance requires quick and easy access to up-to-date, real-time data; Measuring with old or incorrect data can actually lead to a drop in compliance, which can have long-term financial and reputational effects on a company or a larger group of companies. There are several ways for a business to ensure that everything necessary to achieve compliance is done efficiently and in a timely manner. Whether you`re looking to start a new business or raise capital through an IPO, our team of legal and compliance experts can help you every step of the way. So here`s an analogy that we think gets the job done: The next time someone asks you to explain the difference between legal and compliance, state it in terms of security and assurance. Wonderful analogy and an easy way to distinguish the roles of compliance and legal team. Thank you! In-house counsel play a critical role in protecting the company, its directors and employees. Thomson Reuters Practical Law`s Compliance and Ethics Toolkit states that legal departments can ensure compliance by: As anyone who runs a business is well aware, there is a growing number of laws regarding regulatory compliance. The pressure to comply is great and affects every aspect of a company`s operations. Whether the laws relate to an organization`s governance or how the organization maintains its relationships with third parties, penalties for non-compliance can be extremely severe. A robust compliance process includes, but is not limited to, keeping records of controls, policies and procedures surrounding legislation and retaining evidence that the right people are taking responsibility for compliance.
It`s just less obvious because “legal vs compliance” is a bit more abstract than “fire safety vs fire insurance” – which is why an analogy with these more accessible features helps set the record straight. It is important to consider non-legal requirements when assessing your organization`s conformity. Has the company signed any industry codes? Does the company comply with all ethical guidelines? Do you meet the requirements of licensing, financing or leasing agreements? Expand your network when you take the necessary steps to assess regulatory compliance and ensure you get a complete picture of your organization`s compliance status. Ensure that all records within the organization and across all units are rigorous, that your compliance teams know what to keep the records about, and that they are securely stored in an easily accessible central repository. The quality of records is an essential element of a successful assessment of regulatory compliance. Great analogy! Very easy to understand the difference between legal and compliance. Growth and expansion are intentional and time-consuming. The first phase of growth is done through turmoil, sales in the market, and there is practically no time or budget for the structure of the company. The store is in reactive mode. We created our legal subscription plans to move our clients from reactive to proactive by appointing a team to build the structure for the next phase of business growth. Stop putting out fires that slow down your business! Add our team as your legal department to focus on what you do best for your business! Compliance policies and processes will fail without clearly communicating these requirements to all members of the organization.
Ensure that all employees, from the board level to the board, are aware and understand their compliance responsibilities: organize training and education programs and schedule regular checks to ensure everyone is on board. Compliance means not only knowing and understanding the laws that apply to the organization, but also being able to demonstrate that the company and its entities are compliant at all times. It`s so true. I have also repeatedly observed confusion between legal and compliance functions. Perhaps another important essence of the compliance function would be to go “beyond regulatory compliance,” i.e. ethics? Compliance and the law are separate concerns, but the two are closely linked; One of the primary responsibilities of a company`s legal department is to ensure, promote and facilitate compliance. Shareholders, lenders, customers and sellers all have complex and numerous legal requirements to meet, and everyone they deal with is also expected to be able to comply. In particular, there are many laws regarding which records must be kept, how long they must be kept, and in what format they must be presented and stored. This can affect the entire business, from customer management to technical processes and workflow controls. The main purpose of legal entity management software is to store and maintain all business-related information in order to create a single source of information for all business-related information.
It enables the implementation of processes and procedures across all global units to ensure the accuracy, accuracy and timeliness of your compliance program.