Challenges of Successful Corporate Compliance
Modern corporate compliance is a pretty heavy concept. Organizations need to be coordinated at all levels to ensure that they don’t make an error born out of negligence or ignorance that could result in gargantuan fines and lost time.
However, a successful corporate compliance program faces many challenges. To avoid these pitfalls you need to work with and exceptional firm well practiced in designing and implementing modern compliance strategies. The following are some of the most common challenges that face organizations when they attempt to implement a compliance program.
Failing to Coordinate Teams Separated by Geographical Boundaries
Though advancements in communication technologies are making it easier for organizations to coordinate on a global scale, there are still a lot of compliance challenges when working in multiple geographic locations. Laws are different from state to state and vary greatly in different countries. You need to make sure that all of your bases are covered by ensuring that organizational units across the globe comply with the latest standards. It is very challenging coordinating corporate compliance programs in multinational environments, but an expert can help you iron out the details to help you avoid compliance failure.
Failing to Monitor Your Program
You absolutely need to monitor the effectiveness of your compliance program to avoid future corporate compliance risks. Each new employee you hire that hasn’t yet adjusted to your organizational culture poses a corporate compliance risk. Furthermore, you also need to monitor changes in compliance standards to update your program accordingly. Few things in life are perfect, and there will always be new opportunities to fine-tune and optimize your corporate compliance program.
Failing to Garner Participation and Input from All Levels of Management
Don’t make the mistake of thinking that corporate compliance standards only pertain to employees below middle-management. Compliance issues affect all levels of your organization, and successful programs will engage all levels of your organizational hierarchy. A failure to engage top leaders in your organization could lead to lower-level employees disregarding or failing to see the value in your compliance program.
Failing to Report and Discipline Violations
The problem at the heart of this challenge is accountability. Many times organizations define standard procedures and best practices that need to be followed to avoid compliance disasters. However, whether because of ignorance or an innocent mistake, some people fail to follow procedure. When this happens, there needs to be some sort of consequence for the party that failed to follow procedures.
Also, some people choose to look the other way or turn a blind eye to the compliance failure. Some employees form tight bonds with each other and look out for one another, but it is always inappropriate and unethical to choose to not report a violation.
If you need help auditing or creating a compliance program, it is better to take action sooner rather than later. Don’t leave the door open for compliance risks and corporate turmoil. Instead, contact us today to secure your organization’s future.