Compliance Policies & Procedures

What are Compliance Policies & Procedures?

Compliance policies detail the laws, industry regulations and government legislation around managing your business, employees and customers. Compliance management is an important part of running a business. 

Compliance Policies and Procedures Examples

Compliance policies and procedures include: 

• Human Resources Policy

• Financial Services Policy

• Data Security Policy 

• Work-place Safety Policy

They may vary across jurisdictions and can be broadly categorised as:

• Internal policies: Key company-specific policies, codes, standards and controls
• External policies: Federal, state, and applicable local laws and regulations.

What is the purpose of Compliance Policies?

Adherence to compliance policies safeguards your company against legal and financial consequences by:

• Reducing the risk of penalties, fines, lawsuits or shutdown of your business. (See also: Compliance vs Risk Management: What’s the Difference?)

• Educating your work force on best practices and approaches to resolving unethical or unlawful practices
• Helping to create a healthy work environment, leading to higher worker productivity
• Creating a positive public image of your company.

Why are Compliance Policies & Procedures important for an event tomorrow?

Compliance policies benefit your company by:

• Building a positive image of your company that is useful in the event of an M&A deal
• Ensuring you are complying legally with all relevant laws and regulations
• Helping to build company morale and employee loyalty. See also: Small Business Compliance

How to Ensure Compliance with Policies and Procedures

Here are some tips and steps to help you ensure compliance with company policies and procedures:

Understand the policies and procedures

Familiarize yourself with all relevant corporate policies and procedures. Read through them carefully to gain a comprehensive understanding of what is expected.

Communicate the policies

Share the policies and procedures with all employees and stakeholders. Conduct training sessions, workshops, or webinars to explain the policies in detail, emphasizing their importance and relevance to the organization.

Create a compliance culture

Foster a culture of compliance within the organization. Encourage employees to adhere to the policies and lead by example. Emphasize the importance of compliance in all communications, and reward individuals who consistently comply with policies.

Establish a compliance team

Designate a GRC team responsible for overseeing and enforcing compliance. This team should have the authority to investigate and address any potential violations. They should also be responsible for educating employees, answering questions, and providing guidance on compliance matters.

Conduct regular audits 

Perform regular audits to assess compliance levels and identify any areas of concern. Audits can be conducted internally or by external parties, depending on the nature and complexity of the policies.

Provide training and education

Offer regular training sessions and workshops to educate employees about the policies and procedures. This training should be provided to both new hires and existing employees to ensure everyone is aware of their responsibilities.

Establish reporting mechanisms

Create channels for employees to report potential policy violations anonymously or without fear of reprisal. Encourage employees to report any concerns they may have and ensure that all reports are thoroughly investigated.

Monitor and enforce compliance 

Continuously monitor adherence to policies and procedures. Regularly review and update the policies to reflect changing regulations or business needs. Consistently enforce the consequences of policy violations to demonstrate the seriousness of compliance.

Stay informed 

Stay up to date with relevant laws, regulations, and industry best practices. Regularly review and update policies and procedures to align with any new requirements or changes in the operating environment.

Seek legal and compliance expertise 

If necessary, consult with legal and compliance experts to ensure that your policies and procedures are comprehensive, legally sound, and in line with industry standards. See also: How can you be confident you’re 100% compliant?

Pros of addressing Compliance Policies & Procedures thoroughly

• Potentially shelters your company from law suits
• Strengthens your public image
• Improves the integrity of business transactions
• Improves your work force retention rates.

Cons of not addressing this topic

• Increases the risk of law suits and or financial penalties
• Harms the public image of your company.