The Compliance Officers Killer Application

Home
>
Business Management
>
The Compliance Officers Killer Application

The Compliance Officers Killer Application

It used to be that only the largest multi-nationals needed a Compliance Officer. Today most practices, regardless of size, would be wise to charge someone within their organisation with the responsibility of keeping abreast and managing the compliance process.

Take as an example European employment law that has been introduced over the last few years that has changed the face of European businesses. Small businesses in particular are finding that a casual and informal approach to employment issues can now result in statutory fines that have no bearing on the financial health of the individual company and could, without as much as a by your leave, directly result in the demise of a company.

Small to medium businesses do not often have the luxury of employing a full time Compliance Officer and although larger organisations can afford a dedicated person they are finding that with compliance issues mushrooming the Compliance Officer now has a team, a department and if not already, how long before compliance becomes a division?

Regardless of size, the first step in compliance for any organisation requires them to identify the areas of compliance that are applicable to them. Rules and regulations are being introduced monthly on a local, regional, national and international level, covering everything from data protection and freedom of information, anti-money laundering to environmental waste control, race relations to health and safety; with ignorance being no defence there is a requirement on the individual businesses to know their responsibilities, and fines for those that wait to be told.

Having identified the areas of compliance the company then needs to understand what they need to do to ensure they comply. It is becoming conceivable that with the shear volume of compliancy issues that companies who can show a good faith effort in complying will, even when they fall short, reduce the risks of fines.

Having identified and understood the compliance issues the Compliance Officer needs to define and implement policy and disseminate the information throughout the organisation.

It is important for the Compliance Officer that they do not inadvertently become the company's patsy. Senior managers are not averse to ignoring the internal memos they receive advising them of their responsibilities. Compliance Officers need to deliver their messages up and down the corporate food chain and record that their advice and directives have been received and more importantly understood.

The Compliance Officer has to avoid becoming the company scapegoat. This won't happen by itself, a sales team that has a long history of success though a relaxed attitude to selling is not going to willingly adopt new, and what they will see as restrictive, practices without a fight. 'I didn't get the memo', 'I didn't understand it', 'I thought it meant something else', 'I thought these were only guidelines' are likely to be stock replies, along with the one or two old timers that didn't think compliance issues applied to them. It used to be a safe bet to blame IT, blame Compliance is rapidly taking its place.

One valuable tool in the Compliance Officer's tool box is the online survey and questionnaire.

The online survey can deliver a message internally to the individual; it can be informative like a memo and educational by referencing detailed policy. Importantly it can become a valuable self registering record that confirms that the information has been properly disseminated and understood.

A single survey question can achieve all these objectives at the same time.

Take an example:-

Are you aware that section 45 of the Companies (Auditing and Accounting) Act 2003 imposes an obligation on directors of certain companies to prepare statements on their company's compliance with its relevant obligations?
(Click here for a summary of Company's Policy on Compliance Reporting Obligations)

Yes
No

For those Directors that have not read the policy the survey will give an opportunity to view the company's policy online (using an embedded live HTML link). Should Directors answer 'No' the Compliance Officer knows who to target.

The survey also records the manager's response and shifts the responsibility away from the Compliance Officer to the individual manager where the responsibility needs rest for a company to meet its compliance obligations.

Using an online website such http://www.surveygalaxy.com where multiple surveys can be managed, easily modified, updated and re-issued on a periodic basis across an organisation online surveys can be the Compliance Officer's killer application.

Through the regular use of online surveys the Compliance Officer will be in the driving seat, leading and not chasing compliance issues, not only circulating the information on a one to one basis but also monitoring and recording the level of awareness throughout the organisation.

The Compliance Officer's role is a difficult one, like a parent keeping a wayward child on the straight and narrow, most employers, let alone their employees, often do not fully understand the true consequence of their, often innocent, minor discretions. Assigning a Compliance Officer is a start but enabling them to fulfil their remit will be the difference between a company being fully compliant and one that risks suffering the consequences for having let compliance take a back seat.

Martin Day is a Director of Survey Galaxy Ltd a web site that allows anyone to create, design and publish online surveys. Martin has provided survey consultancy for a number of Compliance Officers to help develop internal compliance awareness programmes. For more information please visit http://www.surveygalaxy.com

In The News:

Yahoo! News: Top Stories

Job losses stack up as recession deepens (AP)

AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.

Illinois House on verge of impeaching Blagojevich (AP)

AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.

Rifts show as Obama urges quick action on stimulus (AP)

AP - Lawmakers are under orders to finish action on President-elect Barack Obama's nearly $800 billion economic recovery plan by mid-February. But already it is plain that a set of serious fissures need to be bridged if the bill is to be completed within five weeks.

Israel to continue offensive despite UN resolution (AP)

AP - Israeli jets and helicopters bombarded Gaza Friday and Hamas responded with a barrage of rockets, as Israel's government said it will press forward with its offensive despite a U.N. resolution calling for an immediate cease-fire.

Obama to finalize national security team Friday (AP)

AP - President-elect Barack Obama is completing his national security team by announcing his unusual choices for CIA director and a national intelligence director who may face tough Senate confirmation questioning over how he confronted the Indonesian military when civilian massacres were occurring in East Timor.

Stocks point lower ahead of employment report (AP)

AP - Investors showed nervousness Friday ahead of the government's monthly employment report, sending stock futures moderately lower.

Democrats begin new session with labor bills (AP)

AP - Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace.

Broadcasts to mobile devices to start in 22 cities (AP)

AP - TV stations in 22 U.S. cities announced Thursday that they will start broadcasting their signals this year in a format designed to be received by mobile devices like cell phones, MP3 players, GPS units and in-car entertainment systems.

Ex-'Sopranos' actor faces prison for burglary try (AP)

AP - A former actor on "The Sopranos" faces up to 15 years in prison for a botched burglary in the Bronx in which an accomplice shot and killed a police officer.

Tebow leads Fla. past Okla. 24-14 for BCS title (AP)

AP - Tim Tebow gave Florida the jolt it needed, and the Gators toughed out a second BCS title in three years. Their 24-14 win over No. 2 Oklahoma in a choppy, sloppy affair Thursday night made them a national champion.

World waits on jobs data as recession weighs (Reuters)

Reuters - Steep falls in European industrial output underlined the severity of the world economic crisis on Friday and more grim news was on the way with the United States expected to report the biggest monthly job cuts in more than 30 years.

U.N. calls for immediate Gaza truce (Reuters)

Reuters - Israel pushed ahead with its two-week-old offensive in the Gaza Strip on Friday, defying a U.N. Security Council resolution calling for an immediate ceasefire.

Panel steps up criticism of Treasury: report (Reuters)

Reuters - A report being released on Friday alleges that the U.S. Treasury has failed to reveal its strategy for stabilizing the financial system, not answered questions asked by a government watchdog, and has done nothing to help struggling homeowners, the Wall Street Journal said.

Obama team working on overhaul of financial rescue (Reuters)

Reuters - U.S. President-elect Barack Obama's economic team is working on an overhaul the $700 billion financial rescue program with the aim of doing more to spur the flow of credit to the struggling economy, an Obama aide said on Friday.

EU seeks gas supply return after deal on monitors (Reuters)

Reuters - Russia's state-controlled gas monopoly said a deal to monitor gas exports via Ukraine would be signed on Friday, allowing for the resumption of supplies to Europe cut off by Moscow's price row with Kiev.

Citi backs measure to help avoid foreclosures (Reuters)

Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.

Illinois panel recommends governor's impeachment (Reuters)

Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.

Health care overhaul needn't break bank: study (Reuters)

Reuters - An analysis of proposals to overhaul U.S. health care by President-elect Barack Obama and members of Congress suggests it is possible to insure all Americans without significantly raising total health spending.

Israel presses on with Gaza strikes despite UN resolution (AFP)

AFP - Israel battered Gaza with bombs and shells on Friday, vowing its offensive on Hamas would go on despite an order by the UN Security Council to stop the assault that has killed hundreds of civilians.

Russia hopeful of resuming Europe gas supplies (AFP)

AFP - Russian gas deliveries to Europe could resume later Friday, the head of Russia's state gas firm said, raising hopes for an end to a transit dispute with Ukraine that has left several European states without gas at a moment of bitter cold.

The Compliance Officers Killer Application

Business Management Business Management