Mauricio Escobar’s Post

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Corporate Compliance Counsel | Litigator | Adjunct Professor | Dad | Music Buff | Tennis Player

※So, you've implemented a compliance program with all of the bells and whistles--compliance policies, procedures, training slides, compliance reminders to employees, etc. If a federal regulator comes knocking, you'd be in the clear, right? Not exactly. In the ever-evolving world of business, ensuring the health of your compliance program is not just a regulatory requirement; it's a strategic imperative. As we navigate through dynamic regulatory landscapes and unprecedented challenges, regularly assessing and refining your compliance framework is key to staying resilient. Here are 3 reasons why it's important to take the pulse of your compliance program: ► Adaptability: Markets, regulations, and business environments are in a constant state of flux. Regular assessments help your compliance program adapt swiftly to emerging trends and regulatory changes. ► Risk Mitigation: Identifying and addressing potential compliance gaps early on is crucial for minimizing risks. Proactive measures can prevent costly consequences and protect your organization's reputation. ► Continuous Improvement: A compliance program that stagnates is a liability. Regular evaluations provide insights into what's working well and what needs enhancement, facilitating continuous improvement. How to gauge the pulse? Some will say through training of your employees on the written policies and procedures of your program. Training is important. But don't overlook the importance of testing and monitoring your program. Without testing it would be difficult to know what is working and what needs enhancement. Without monitoring you have no way to identify potential compliance issues before they become a real problem. These two elements are often overlooked, undervalued, and under-sourced. A testing program should consist of a risk-based, periodic, independent and objective assessment of the operating effectiveness of compliance-related processes or controls--i.e., an audit. For example, with respect to gifts and entertainment compliance, testing of gifts and entertainment logs and individual expense reports should be conducted to determine whether employees are complying with the gifts and entertainment policy and recording transactions. A monitoring program consists of ongoing, real-time analysis of risk indicators and compliance functions to identify compliance violations. This would include, for example, identifying anomalies or "red flags" in the gifts and entertainment logs and expense reports. Also important: leverage technology solutions to automate compliance monitoring and reporting. 🌐 In an era where regulatory scrutiny is higher than ever, taking the pulse of your compliance program isn't just a task; it's a strategic imperative. It's about ensuring your organization is not just compliant but also agile, resilient, and future-ready. #compliance #riskmanagement

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