Compliance professionals play a pivotal role in companies of all sizes, but especially medium to large business infrastructures. Neglecting to pay attention to this important facet of business could lead to a costly legal problem or, worst-case scenario, your business getting shut down.
So, what is the role of a compliance manager, do you really need to hire one and what compliance management solutions are available to make the role of risk management and compliance more efficient and effective?
The Role Of a Compliance Manager
Depending on the size and difficulties of your company, this could be a full-time role, part-time, or one handled by a member of your existing management team.
The key duties of a compliance manager are to guarantee that the company is adhering to the legal and ethical requirements of the industry, which includes following governments regulations and tax obligations.
If you hire a dedicated compliance manager, not only should they be fully trained and qualified, they also need to stay abreast of all current regulations and laws, as things can often change. You want to vastly reduce the chance of any legal or financial problems for your business due to non-compliance.
Key duties may include the following:
- Based on both state and federal laws, a compliance manager will formulate rules by which the company is run
- Assess, evaluate and initiate changes to ensure the company is up to standard in regards to state or federal requirements
- Provide regular reports and reviews regarding the company’s compliance
- Helps educate owners, managers and employees on the rules and regulations to guarantee everyone remains compliant with the laws
A compliance manager may even play a dual role and be required to implement and monitor risk management for the business too.
As a risk manager, the person will be responsible for recognizing potential hazards and risks before they have a chance to present major problems.
Compliance Risk Management Software
Risk and compliance management software will play a massive role in keeping your business fully compliant with the laws, rules and regulations that govern your industry. No matter who you designate the role of compliance manager to, their job will be made so much easier if your company is running the latest quality compliance management program, tailor-made to suit your business.
With large companies and corporations, there can be many complex levels and inter-related risks to monitor, analyze and deal with on a regular basis. The software really is a lifesaver as it makes it quite easy to see data at a glance and determine if the company is at risk in any way.
Quality software will contain modules for things like:
- Registers for registering your obligations
- Control libraries
- Central libraries
- And more…
Even compliance apps for smartphones are available, meaning managers can still keep an eye on business operations whilst not in the office.
Compliance software can run assessments and analytics to determine the health of the company on all levels, so it’s really worth investing the money for the latest software. It can even give you automated alerts to risks as they arise.
How a Compliance Manager Will Benefit Your Business
One of the biggest hurdles any business can encounter is a legal problem. Your company or employees may not deliberately be doing the wrong thing. It could simply be a case of everyone being unaware of the rules and regulations required of a company in your industry.
This is where an experienced compliance manager, armed with the right software, will really come into their own. It’s their job to be aware of the laws and to educate everyone else in the workplace on the requirements they need to abide by.
Lawsuits can be costly and so can fine, but what would be even more costly would be to have your business shut down by the authorities because you were doing the wrong thing.
A compliance manager will be equipped with astute problem-solving skills and a mind that pays attention to detail. The role of compliance manager will likely take into account more general risk management and assessment tasks as well, to ensure the company is both compliant, and in a stable position as far as its business processes go.
For businesses that are medium-size and above, hiring a compliance manager is one of the best business decisions you could ever make.