Not all that many years ago, only the larger and more complex organizations had employees who were dedicated to compliance issues. That was before Enron became the first domino to topple in what would be a long line of financial scandals that were the catalyst for the Sarbanes-Oxley Act of 2002. Since then, even those businesses not governed by SOX have scrambled to initiate compliance and accountability programs.
What had once fallen under the umbrella of tasks assigned to the accounting department became an executive level function that reports directly to the CEO. The Chief Compliance Officer is responsible for initiating, implementing and monitoring internal policies and procedures. This includes insuring that all employees are adequately trained on these policies, conducting investigations into ethical, operational or criminal breaches and coordinating with the human resources department. Externally, the CCO directs and manages all aspects of compliance with local, state and federal regulatory agencies, as well as third party specifications and requirements.
Industries related to the financial markets or those in the health-care sector are currently in the national spotlight and are receiving intense scrutiny from governmental agencies. The demands for information and requirements for auditing have placed tremendous pressure on compliance personnel. These are not the only industries affected, however, and even those not currently being tasked are anticipating new regulations that will require detailed and immediate response and implementation.
Only the most irresponsible and foolhardy companies will ignore the potential costs of not having an effective compliance program. The public is in an angry mood, and Congress has responded by supporting those regulatory agencies that are imposing significant fines and penalties.
Even those organizations that strive to be in compliance are finding the task extremely difficult. Fortunately, regulatory compliance software is available to help today’s CCO consolidate these many and often diverse tasks into a system that can be managed. Not only does the use of this sort of software enable the integration of these various tasks, but, when properly implemented, it can be done more efficiently and with less staff. Also, in the past, the sharing and implementation of information was daunting, at best. Now, this can be accomplished with a few keystrokes. This, alone, is an extremely time-saving and valuable function.
Compliance products, like regulatory compliance software, make it possible for the CCO to automate the entire process, from start to finish, of all company policies and procedures, as well as regulatory requirements, from the beginning through each phase of development, review, revision, approval and implementation. Almost as important as the on-going management of each process is the ability to retrieve all of the relevant documentation at some future date, should it be required due to litigation or regulatory agency request.
To do business in the world today, it is crucial to have an experienced and dedicated compliance officer, armed with the necessary tools. At the top of that list is the best compliance software available. Even then, there is no guarantee of a smooth ride, but there is far more likelihood that the journey will be a success.
