Alexander Clemm’s Post

🔸 Why You Need A Better Approach to Compliance 🔸 When organizations endeavour to achieve compliance many take a by-the-element approach. This comes from years of prescriptive regulations and a focus on implementing "shall statements" in order to pass certifications and audits. When the focus is on meeting "shall statements" rather than advancing compliance outcomes we find these familiar steps: 1. Understand the elements of the regulation or standard. 2. Map existing practices to the elements. 3. Identify where current practices do not meet the standard. 4. Engage these deficiencies in a Plan-Do-Check-Act (PDCA) cycle. 5. Target these deficiencies for compliance with the standard. This approach is not without limitations, notably that it often fails to deliver operational systems fast enough or at all. Organizations usually run out time, money, and motivation to move beyond the parts of a system to implementing the interactions that are essential for a system is to be considered operational. For compliance to be effective in today’s landscape another strategy is needed that: - Achieves operational status sooner, - Creates and advances benefits over time, - Provides a platform to build-measure-learn with the least cost We know from systems theory that systems are never the sum of its parts but rather the product of its interactions. It is these interactions that cause emergent properties to be created. For compliance systems these are the outcomes we are targeting: zero incidents, zero violations, zero fatalities, zero emissions, and so on. Lean Compliance's approach emphasizes system interactions to achieve operational status sooner than traditional by-the-element approaches to compliance. Our methodology includes the following objectives: 1. Identify and evaluate mandatory and voluntary: prescriptive, performance, and outcome-based obligations. 2. Map obligations to existing governance, programs, systems, and processes. 3. Identify and evaluate measures of conformance, performance, effectiveness, and assurance 4. Identify and evaluate uncertainties to meeting targeted goals and objectives. 5. Identify and evaluate capabilities, capacity, and performance to meet and sustain obligations. 6. Establish minimal viable compliance (MVC) based on essential behaviours and properties that can be improved on over time. 7. Elevate compliance effectiveness by improving MVC using a build-measure-learn process. Compliance might start off looking like a bicycle but will soon look like a motorcycle, and then a car. Instead of an assortment of disparate compliance parts not working together that might someday deliver on your commitments, you will have a system that delivers benefits right from the start and improves over time. 🙋🏻 Join our weekly Elevate Compliance Huddle ✉️ Subscribe to our Newsletter 🚀 Supercharge your Compliance with Proactivity 📍Lean Compliance - The Proactive Compliance Experts

🔸 Why You Need A Better Approach to Compliance 🔸 When organizations endeavour to achieve compliance many take a by-the-element approach. This comes from years of prescriptive regulations and a focus on implementing "shall statements" in order to pass certifications and audits. When the focus is on meeting "shall statements" rather than advancing compliance outcomes we find these familiar steps: 1. Understand the elements of the regulation or standard. 2. Map existing practices to the elements. 3. Identify where current practices do not meet the standard. 4. Engage these deficiencies in a Plan-Do-Check-Act (PDCA) cycle. 5. Target these deficiencies for compliance with the standard. This approach is not without limitations, notably that it often fails to deliver operational systems fast enough or at all. Organizations usually run out time, money, and motivation to move beyond the parts of a system to implementing the interactions that are essential for a system is to be considered operational. For compliance to be effective in today’s landscape another strategy is needed that: - Achieves operational status sooner, - Creates and advances benefits over time, - Provides a platform to build-measure-learn with the least cost We know from systems theory that systems are never the sum of its parts but rather the product of its interactions. It is these interactions that cause emergent properties to be created. For compliance systems these are the outcomes we are targeting: zero incidents, zero violations, zero fatalities, zero emissions, and so on. Lean Compliance's approach emphasizes system interactions to achieve operational status sooner than traditional by-the-element approaches to compliance. Our methodology includes the following objectives: 1. Identify and evaluate mandatory and voluntary: prescriptive, performance, and outcome-based obligations. 2. Map obligations to existing governance, programs, systems, and processes. 3. Identify and evaluate measures of conformance, performance, effectiveness, and assurance 4. Identify and evaluate uncertainties to meeting targeted goals and objectives. 5. Identify and evaluate capabilities, capacity, and performance to meet and sustain obligations. 6. Establish minimal viable compliance (MVC) based on essential behaviours and properties that can be improved on over time. 7. Elevate compliance effectiveness by improving MVC using a build-measure-learn process. Compliance might start off looking like a bicycle but will soon look like a motorcycle, and then a car. Instead of an assortment of disparate compliance parts not working together that might someday deliver on your commitments, you will have a system that delivers benefits right from the start and improves over time. 🙋🏻 Join our weekly Elevate Compliance Huddle ✉️ Subscribe to our Newsletter 🚀 Supercharge your Compliance with Proactivity 📍Lean Compliance - The Proactive Compliance Experts

Rethinking Compliance : Putting People First In the intricate dance of regulatory compliance, organizations often invest significant time and resources into crafting meticulous policies and procedures. The aim? To ensure adherence to regulations and ethical standards. Yet, in this meticulous choreography, there’s a key player often overlooked: the human factor. It’s time to shine a light on the often-neglected aspect of compliance: people. While procedures and policies form the backbone of compliance frameworks, they can sometimes overshadow the dynamic interplay of human behavior within organizations. Consider this: decisions aren’t made in a vacuum. They're influenced by a myriad of factors—stress, neurodivergence, and ever-changing external circumstances. Yet, how often do compliance strategies account for these nuances? It’s a curious oversight, isn’t it? We meticulously document procedures, cross every 't', and dot every 'i', yet we sometimes fail to recognize the complexities of human decision-making. We assume that once the policy is in place, compliance will naturally follow suit. But alas, human behavior doesn’t always adhere to the neatly outlined steps in a manual. So, why the oversight? Perhaps it’s a symptom of our procedural obsession—the belief that if we have the right rules in place, everything else will fall into line. Yet, as any seasoned compliance officer knows, reality often paints a different picture. It's time for a paradigm shift. Instead of viewing compliance solely through the lens of procedures, let’s put people at the forefront. Let’s acknowledge the inherent complexities of human behavior and factor them into our compliance strategies. This isn’t to say that procedures are irrelevant—they're crucial. But they're only part of the equation. To truly enhance compliance effectiveness, we must embrace a more holistic approach—one that recognizes and accounts for the human element. By fostering a culture of empathy, understanding, and support, organizations can empower individuals to navigate the complexities of compliance with confidence. It’s a subtle shift in perspective, but one that could yield profound results. So, the next time you find yourself knee-deep in compliance procedures, take a moment to consider the human factor. After all, it’s the people behind the policies that ultimately determine their success. In conclusion, when seeking to create effective compliance policy, it's crucial to center it around people. By understanding the individual challenges and needs within the organization, we can make the policy more effective and ensure sustained compliance with ethical standards. For effective compliance program - start Putting People First Zohar (Zoe) https://lnkd.in/ebK3FSzj

Did you know that a robust compliance management framework is crucial for organizations, helping them adhere to regulatory standards and uphold ethical values? Dive deeper into the essential components of the framework by clicking the link below: https://lnkd.in/dH5qJ-iF #compliance #compliancemanagement #bankingindustry #financialinstitutions

Read the blog to know how your organization can boost compliance management framework in 2023 #compliance #compliancemanagement #financialinstitutions

Read the blog to know how your organization can boost compliance management framework in 2023 #compliance #compliancemanagement #financialinstitutions

"Within the intricate landscape of regulatory compliance, navigating the intricacies and evolving standards demands a precise and reliable guide. Enter the Compliance Management System: Your unequivocal compass to success amidst the complexities of compliance. Designed to seamlessly integrate with your organization's framework, this system not only ensures adherence to regulations but also fosters a culture of accountability and efficiency. With its robust capabilities, it empowers businesses to proactively identify, address, and mitigate compliance risks, safeguarding reputation and enhancing operational resilience. In a world where compliance is non-negotiable, this system stands as a beacon, illuminating the path to sustainable success and ethical leadership."

The 6th edition of the IBGC's Code of Best Practices of Corporate Governance,emphasize the strong link between effective corporate governance and robust compliance programs. Here's how they intertwine: Key principles from the Code that connect to Compliance: ●Transparency and Disclosure: Companies should be transparent in their disclosures, especially regarding compliance programs, risk management policies, and potential legal actions; ●Integrity and Ethics: The Code underscores the importance of conducting business with integrity and upholding ethical standards. Compliance programs act as essential tools to prevent and detect unethical behavior and illegal activities; ●Board Oversight and Accountability: The board has a responsibility to oversee the compliance program's effectiveness and ensure it aligns with the organization's risk profile and industry regulations; ●Risk Management: Identifying, analyzing, and mitigating compliance risks is crucial. The Code encourages regular risk assessments and updates to the compliance program to address evolving threats and regulations. ●Stakeholder Engagement: Open communication with stakeholders, including investors, employees, and regulators, is crucial for building trust and demonstrating commitment to compliance. Modern trends in Compliance programs aligning with the Code: ■Holistic Approach: Companies are moving beyond legal compliance to incorporate environmental, social, and governance (ESG) factors into their compliance programs; ■Technology Integration: Advanced data analytics and risk management platforms are increasingly used to monitor compliance activities, identify anomalies, and predict potential risks; ■Employee Empowerment: Creating a culture of ethics and compliance where employees feel comfortable reporting potential violations is essential; ■Continuous Improvement: Compliance programs should be regularly reviewed and updated to reflect changes in regulations, business practices, and risk profiles. Benefits of aligning Compliance programs with the Code: 》Reduced legal and reputational risks: Proactive compliance strengthens risk management and prevents costly legal issues and reputational damage; 》Enhanced stakeholder trust: Transparent and ethical operations foster trust with investors, employees, and other stakeholders; 》Sustainable growth: Strong compliance practices contribute to long-term sustainability and responsible business practices; 》Competitive advantage: Companies with well-established compliance programs may gain a competitive edge by attracting investors and talent. Remember, the Code serves as a guiding framework, not a rigid set of rules. Organizations should adapt it to their specific context and industry while ensuring alignment with relevant regulations. By actively embracing the principles of the Code and implementing robust compliance programs, organizations can enhance their corporate governance, mitigate risks, and achieve sustainable .

How do you prioritize compliance efforts to maximize their impact? ✏️ As compliance professionals, we face the ongoing challenge of navigating a complex web of regulations while ensuring organizational adherence to legal requirements. With resources often limited, prioritizing compliance efforts becomes paramount to maximize impact effectively. Here's how: 1. Risk Assessment : Conduct comprehensive risk assessments to pinpoint areas of highest compliance risk, focusing on regulations directly affecting operations and carrying substantial penalties. 2. Regulatory Landscape Analysis: Stay abreast of regulatory changes and industry trends, prioritizing efforts based on the impact of new regulations and enforcement actions. 3. Impact Analysis: Evaluate the consequences of non-compliance, including financial penalties, reputational harm, and operational disruptions, prioritizing efforts where risks are most significant. 4. Resource Allocation: Allocate resources based on risk level and potential impact, directing efforts where additional resources can prevent or mitigate compliance risks effectively. 5. Proactive Measures: Emphasize proactive compliance measures like employee training, policy enhancements, and robust internal controls to prevent compliance issues before they arise. 6. Continuous Monitoring: Implement systems for ongoing monitoring and auditing to identify compliance gaps and emerging risks, prioritizing efforts to address identified issues promptly. 7. Stakeholder Engagement: Engage with regulators, industry associations, and internal departments to collaboratively prioritize compliance efforts, considering stakeholder perspectives and priorities. 8. Compliance Culture: Foster a culture of compliance across the organization by promoting awareness, accountability, and ethical behavior, prioritizing efforts to embed compliance into the organizational culture. 9. Data-Driven Approach: Utilize data analytics and metrics to identify trends, assess compliance performance, and prioritize efforts where improvements are most needed. 10. Flexibility and Adaptability: Remain flexible and adaptable in prioritizing compliance efforts, regularly reviewing and adjusting priorities based on changing regulatory requirements and business priorities. Strategic prioritization is key to successfully navigating the compliance landscape and minimizing organizational risk. By employing these strategies, compliance professionals can maximize their impact and ensure regulatory compliance effectively. So, what do you think?

The 6th edition of the IBGC's Code of Best Practices of Corporate Governance,emphasize the strong link between effective corporate governance and robust compliance programs. Here's how they intertwine: Key principles from the Code that connect to Compliance: ●Transparency and Disclosure: Companies should be transparent in their disclosures, especially regarding compliance programs, risk management policies, and potential legal actions; ●Integrity and Ethics: The Code underscores the importance of conducting business with integrity and upholding ethical standards. Compliance programs act as essential tools to prevent and detect unethical behavior and illegal activities; ●Board Oversight and Accountability: The board has a responsibility to oversee the compliance program's effectiveness and ensure it aligns with the organization's risk profile and industry regulations; ●Risk Management: Identifying, analyzing, and mitigating compliance risks is crucial. The Code encourages regular risk assessments and updates to the compliance program to address evolving threats and regulations. ●Stakeholder Engagement: Open communication with stakeholders, including investors, employees, and regulators, is crucial for building trust and demonstrating commitment to compliance. Modern trends in Compliance programs aligning with the Code: ■Holistic Approach: Companies are moving beyond legal compliance to incorporate environmental, social, and governance (ESG) factors into their compliance programs; ■Technology Integration: Advanced data analytics and risk management platforms are increasingly used to monitor compliance activities, identify anomalies, and predict potential risks; ■Employee Empowerment: Creating a culture of ethics and compliance where employees feel comfortable reporting potential violations is essential; ■Continuous Improvement: Compliance programs should be regularly reviewed and updated to reflect changes in regulations, business practices, and risk profiles. Benefits of aligning Compliance programs with the Code: 》Reduced legal and reputational risks: Proactive compliance strengthens risk management and prevents costly legal issues and reputational damage; 》Enhanced stakeholder trust: Transparent and ethical operations foster trust with investors, employees, and other stakeholders; 》Sustainable growth: Strong compliance practices contribute to long-term sustainability and responsible business practices; 》Competitive advantage: Companies with well-established compliance programs may gain a competitive edge by attracting investors and talent. Remember, the Code serves as a guiding framework, not a rigid set of rules. Organizations should adapt it to their specific context and industry while ensuring alignment with relevant regulations. By actively embracing the principles of the Code and implementing robust compliance programs, organizations can enhance their corporate governance, mitigate risks, and achieve sustainable .