One of the most Googled questions online is the question about what makes a company successful. This is a logical question since businesses owners face an enormous amount of challenges on a daily basis, so a user guide would be something essential. But are there any guides? It’s hard to tell. What works for one company, doesn’t necessarily have to work for others. Depending on the industry, clients or customers, values of the company, goals and their vision, strategies, business models, and tools for achieving business goals actually differ from case to case.
But are there some essential, basic principles that make every company out there successful? According to research, all the companies out there, no matter the size, should focus on their business functions and make sure every one of them plays a tremendously important role for each segment of the business. What do we mean by this? These functions actually represent activities. They can be executed by various employees from different teams, departments, and organizations, within the company. At its core, every company needs to have a functional internal organization in order to succeed. But they need one more thing: the ability to comply with all the relevant laws and regulations.
Seamless communication between the employers and the employees, departments, and functional relationships between all the co-workers are the most important aspects of every organization. There are different types of management every company needs to master in order to beat the competitors and find their place under the sun. What does this include? It includes financial, marketing, strategic, sales knowledge management, and finally, compliance management.
Have you ever heard about compliance management and do you know what it represents? Simply put, it means adhering to the relevant laws that are specifically designed for the very type of business and the industry itself.
Why is this even a question? There are laws and it’s pretty easy to comply with all of them right? This is not the case in reality. Laws are something that is live and that changes and are constantly being upgraded, updated, and improved in many ways. This means that companies need to pay close attention to all the changes that are happening, and this is exactly why good compliance management is crucial for a company’s success. No matter the field or the industry where that company has positioned itself.
What are the reasons for a business to put the effort into having a great compliance management process?
There are multiple reasons. First of all, no company needs penalties, breaches, or any other illegal issues that may result in financial losses, and more importantly, in bad public reputation, that can affect the business at its core. This also includes the company’s revenue and finally – profits. That being said, this is the first and the most obvious reason why compliance management systems that are working properly can actually help your business thrive. Millions of dollars are in the game, and it’s been proven that with good compliance systems you can save up to 10 million a year. Still, voiding violations is definitely not the only reason why an organization should pay close attention to maintaining a good compliance management strategy.
Another reason that’s also worth mentioning is the fact that every business has its own risks. The ability to actually evaluate the number of risks is what helps differentiate successful companies from all the other ones. That said, risk management and risk assessment are one of the top 3 things one should pay attention to, and this also includes compliance management. Or it’s better to say that compliance management and risk management are closely related. If you’re able to effectively monitor all your processes and double-check your documentation and everything that has something to do with the legal aspect of your company, this means that you have more success in measuring all the security risks and other types of risks within your company. How is this possible? Upon discovery of problematic vulnerable systems and documentation or other issues, they’re much easier to resolve. Especially if you constantly keep an eye on them.
As you can tell, the main reason (except for losing money) is to protect your company, in different ways. This leads us to the next reason, and that is preventing your business from fraud, any type of discrimination, etc. Internal and external policies should be aligned, and it’s oftentimes difficult to maintain this if you don’t put in extra efforts in this direction.
Last but not least, your employees are your most valuable asset. Making sure they are protected in every way is what will help your business thrive. If your employees are happy, you can expect higher levels of productivity and motivation in your teams. How can compliance management help? The answer is simple: if you provide them with a safe environment, with strong support when it comes to legal obligations, dealing with complaints, and nurturing ongoing relationships with them, you can expect nothing but success.
Make sure to train certain employees to be in charge of responding to and handling complaints, so that your whole business can function in a dynamic environment. Also, when employees see that your company is well structured, this means that they will easily adhere to your business policies and goals because they will be able to understand these procedures and the importance of actively participating in them.
How do businesses achieve this? In the majority of cases, businesses and companies of any kind use compliance management software or programs that can help them organize, manage and track all the compliance activities that need to be done on a daily, weekly, quarterly, and yearly basis. Compliance management tools are there to help manage and analyze all the data that’s in the system because they’re centralized, easy to access, and organized in a good manner. With the help of platforms such as WHSMonitor, both employees and employers will be able to boost their efficiency and resolve any potential issues in a short amount of time.
Align, protect, and evolve. That’s what compliance management is all about!