Compliance loosely translates to “compliance”, and it literally means “to comply with the rules” . The term is related to the conduct of a company and its compliance with the rules of regulatory bodies. Briefly, at enterprise level, compliance means minimizing the risks and guide business behavior on the market in which they operate.
This concept encompasses all policies, rules, internal and external controls to which a company must comply. Both the company and the Wrapped them in business, as suppliers and service providers need to follow in accordance with the rules of the regulatory bodies.
In addition, they must ensure faithful compliance with the various internal regulatory instruments. Only then will the company comply with environmental, labor, finance, work safety, operations, accounting, and other standards.
The importance of the Compliance
The need to know and practice compliance in daily activities affects companies of all sizes and industries. The concept aims to generate value for the organization and ensure its survival. This practice stems from the large financial impacts caused by factors such as:
● Absence of normative guidelines;
● Misalignments with laws;
● Lack of adequate preventive tools;
● Failures in process management;
● Operations without a structured information system.
How does the concept of compliance impact business?
If a company can claim to be in strategic compliance, it means that there is full transparency and competent and responsible management. In addition, it is informing everyone that its leaders are following up on Process Management.
Poorly managed and risky company
When a company is not adhering to rules, regulations and standards, it is seen as a high risk operation. This means that business partners, service providers, investors and customers have thought you are more likely to experience market and equity losses, and other problems, than your competitors. All of these people will have a view of your organization as a poorly managed company.
How to align management with the concept of compliance
● Use information systems that support the monitoring of the company’s activities and that are in compliance with the law;
● Management of contracts for services and materials that are aligned with the compliance levels established by the company;
● Strengthening of inspection routines for activities, including those that do not usually have certifications;
● Focus on process compliance at municipal, state and federal levels;
● Standardization system in the company’s performance;
● Internal audit processes – driven by requirements to achieve compliance;
● Communication on the company’s structured normative instruments.
Why invest in compliance ?
By being regulated by the laws and defining rules for the entire operation of the company, there will be a reduction in costs and expenses, a reduction in losses and an increase in operating income.
With compliance with current regulations, process transparency becomes a more consolidated reality, which brings greater confidence in the market. In addition, the teams involved in the process become much more prepared, promoting an increase in performance, directly reflecting on productivity.
Reputation and good image are a reflection of the level of compliance that a company proposes to have. Therefore, using this concept to guide the organization’s best practices significantly reduces all the company’s risks in the market, creating a healthier and more reliable environment.
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