Establishing policies and procedures, non-financial risk management and controls provide a roadmap to help navigate day-to-day operations, ensure compliance with regulations and laws, give guidance for decision-making, correct potential issues and streamline internal process flows. Typically, this important work is executed in disparate documents and spreadsheets stored in a shared drive or enterprise content management system.
Simply identifying the appropriate regulations, policy, procedure, control creation, review and approve workflow, distribution and annual review cycles, are all significant pieces of work, not helped by version control, bandwidth and geographical challenges.
Whether related to compliance failures, misconduct, technology, or operational challenges, there is a large downside. In 2017, $26.5 billion was levied against financial institutions for misconduct, sanctions breaches, bribery, tax evasion, fraud and money laundering.
The reputational damage can hit hard and there are also the personal consequences for senior managers, who are increasingly being held accountable for poor practice.
By clearly outlining expectations and practices, a well-maintained compliance landscape can prevent incidents that could result in lawsuits, fines or other enforcement actions. If a problem arises, regulators and courts will often look at company policies to see if the organization is at fault. Outdated policies could mean that your organization is no longer compliant with ever-shifting laws and regulations. This can have significant ramifications.
R1 Compliance is the most effective way to manage policies, procedures, non-financial risks and controls. Unlike traditional solutions, our app automates regulatory intelligence, linking, traceability and workflow, while providing standardised templates, a single source of truth, and full publishing capabilities.