Does Your Business Need a Compliance Management System?
By David Mustin, Vice President - Strategic IT Consulting, Marcum Technology
Even as the new administration in Washington vows to reverse the tide of this country’s regulation-rich business environment, compliance demands on businesses have risen at a staggering rate. In addition to regulatory requirements, dated IT architecture, increased cyber risks and growing business demands, compliance is front and center in both business advisory and control roles.
In a recent Accenture report, “Compliance at a Crossroads: One Step Forward, Two Steps Back?”, more than 80 percent of survey respondents agree that compliance will optimize operations to manage a more complex set of risks under tighter resourcing conditions.
That means that senior management teams and their boards of directors will need to tailor their compliance programs to meet their particular set of core risks. A compliance management system (CMS), which help to ensure that an organization’s policies and procedures are compliant with specific applicable laws and regulations, and addresses training, monitoring and consumer complaint responses.
A CMS offers several advantages to businesses, including:
Risk Management: Let’s start with the basics. No matter what products and services your business sells, there exists any number of financial, operational and strategic risks that must be addressed. When a company adheres to all government rules and regulations, risk is minimized and successful outcomes are optimized.
Quality: A quality compliance program reduces the potential for errors, or at the least spots them early enough to avoid failures. Early detection also saves time and money in the long-run.
Process Efficiency: Closely tied to quality is efficiency. A compliance management system benefits businesses across a range of industries by boosting efficiency.
Brand Trust: Think about your customers, contacts, vendors and other stakeholders. When they know you are taking steps to manage compliance, you are communicating a long-term commitment to the success of your brand. People want to do work with businesses that are ethical, proactive and dedicated. An added bonus? Employees are more likely to want to work for a business with these traits.
Competitive Gain: From small and midsize companies to larger enterprises, a sound compliance management system will differentiate a business from those that fail to comply. At a time when competitive advantages are hard to come by, the ability to drive positive outcomes will help your business stand apart.
Even if our executive and legislative branches of government are successful in dialing back many of the regulations that have driven the focus on compliance, the regulatory landscape will remain dynamic for the foreseeable future. Those companies that pay attention to the increasing confluence of compliance and risk will be better positioned for long-term success.
Marcum’s Business Advisory team works with businesses to determine their strategic planning needs. We can work with your company to determine your compliance management issues and then craft specific solutions that meet your needs. For more information, please contact David Mustin, Vice President – Strategic IT Consulting, Marcum Technology