According to GRC World Forums, current global trends make way for a proactive approach to managing governance, risk, and compliance. It’s increasingly important for companies to apply a culture of resilience and agility to prepare for external threats of all kinds. In another instance, technology leaders, like CIOs, are taking on a new role as change makers becoming the centre of corporate decisions. GRC risk methods have become their ticket to achieving operational excellence.
A compliance management solution makes companies more efficient, assisting stakeholders, employees, communities, and more.
Why is standardisation important
There are many reasons. Business risks, operational challenges, regulatory concerns, environmental compliance, and more are a reality companies face. Standardisation is key to maintaining stakeholder and investor trust, as well as regulating global relations. Especially, with growing business climates, business activities across borders should be intact. The standardisation process enables leaders to set values and ethics in a way that employees can relate to, for better job execution, motivation, and morale. Moreover, giving them clarity and clear instructions lets them excel and maintain quality.
5 benefits of the standardisation process
- Enhance scalability
Stability creates business longevity. If there is less ambiguity in the business, there is more time to meet customer demand and scale any business.
Compliance programs need to move away from ineffective and static check-the-box methods in order to become more flexible and scalable. This is vital to ensure that compliance management is taking place more efficiently and that businesses are well prepared for known risks as well as unforeseen and emerging risks.
- Improve customer experience
If there is consistency and quality, customers have every reason to continue purchasing a product or service.
Consistently meeting legal obligations is crucial for a company’s reputation. In terms of complying with regulations, customers are reassured that your business cares about keeping their information safe and about ensuring ethical operations. This helps to foster customers’ trust – a contributing factor to the success of your business.
- Reducing Costs
Improving and automating processes can save you time and money, as there is less room for costly errors.
Having an integrated approach to compliance and automating processes such as data collection and report generation helps to reduce common human errors and improve the quality of compliance management, thus minimizing and mitigating the risk of costly mistakes.
Further to this, ensuring that continuous improvement takes place by the constant monitoring of your compliance program helps to identify areas of waste where time and resources can be redirected more efficiently.
- Eliminating Risks
Prevent outside risks to avoid business collapse and establish business stability.
Having a proactive approach to compliance enables businesses to identify and rectify the root causes of non-compliance. This ensures that the compliance program can be used as an asset to improve the way the business is run, further ensuring business sustainability.
- Culture of continuous improvement
Rules, regulations, and policies and procedures help companies and their employees to behave in a manner that is consistent with their values and helpful in realising their goals. Not adhering to these can be detrimental to the entire organisation.
When a company has structure, employees immediately feel empowered and will look for ways to improve processes.
Inspiring a culture of continuous improvement can be accomplished in a few ways, namely:
- Regular and transparent communication
- Encourage conversation and collaboration to help share ideas
- Empower employees
Compliance management standardisation example
Extreme weather conditions could damage an organisation, putting employees at risk and causing excess costs. GRC incident management is a solution to ensure employees are adhering to environmental protocol. Using standards prepares you in advance. If a problem does arise, you are better equipped to recover from the initial problem, putting you in front of competitors. A business could also prevent restricted expansion or operation and fines due to non-compliance.
