In a recent installment of its series, Ascent delved deeper into the core elements of a robust compliance programme, based on the principles outlined in its Regulatory Compliance Scorecard.
Previously, the firm examined the bedrock of compliance, focusing on the need to clearly define corporate entities and pinpoint relevant legal and regulatory requirements. its current focus shifts to the creation of a centralised regulatory obligations library – a vital tool for enabling compliance teams to seamlessly weave obligations into policies and controls.
A strong compliance programme hinges on developing customised lists of obligations for each corporate entity, detailed down to the citation level. This meticulous approach guarantees that every regulatory requirement is precisely documented and understood, providing your organisation with the clarity needed to tackle compliance without any ambiguity.
These obligation lists serve as a blueprint for compliance, offering a clear, step-by-step guide to meet compliance responsibilities. Think of each obligation as a piece of a puzzle; when assembled correctly, they create a complete picture of compliance.
The benefits of a well-crafted obligations inventory include:
- Clarity: Ensures every team member is aware of their responsibilities, reducing confusion and errors.
- Accountability: Simplifies the assignment of responsibility for obligation fulfilment.
- Efficiency: Allows your organisation to allocate resources more effectively, targeting areas of higher risk or importance.
- Audit-Readiness: Facilitates a comprehensive compliance audit trail in the event of regulatory audits.
Setting up a centralised inventory for all regulatory obligations acts as a knowledge repository for informed decision-making. This library should be adaptable to accommodate updates and new requirements as regulations evolve.
Key advantages of a central obligations library are:
- Accessibility: Ensures all compliance information is readily available to authorised personnel.
- Consistency: Maintains uniformity in information across the organisation.
- Efficiency: Enhances decision-making, reporting, and auditing processes through easy retrieval of compliance data.
- Scalability: Adapts to organisational growth and changing regulations.
As your compliance infrastructure strengthens, remember it’s a dynamic foundation, evolving alongside regulatory shifts and organisational development.
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