The pandemic has changed working habits and customer expectations, resulting in faster adoption of innovation and technology.
Businesses must keep track of the compliance landscape and implement measures to safeguard their sensitive organizational data. Compliance management governs internal security policies and best practices, allowing businesses to comply with regulatory requirements.
Compliance automation uses technology to make the compliance process easier. The use of artificial intelligence (AI) and algorithms empowers businesses to streamline compliance-related processes, such as risk assessments, testing, control evaluations, and corrective action implementation.
Automation augments the organization’s compliance framework by monitoring security procedures for any violations while thoroughly considering the industry’s operating environment. When calibrated to the organization’s security framework, automation allows you to take pre-emptive action before anything goes wrong.
When it comes to compliance automation, banks have been early adopters. Other industries have also realized the importance of compliance automation. But they have some catching up to do in 2023.
Why does automation matter?
A reactive compliance management policy limits your option to damage control. You only know the problems once they are out in the world. However, running a smooth business depends on how proactive you are. Automation gives you the ability to plan and implement compliance policies easily thus, avoiding compliance problems and litigation.
The peace of mind that comes from having all compliance issues and processes in one place — a single source of truth — allows you to save invaluable time that would otherwise be wasted reconciling word documents, spreadsheets, and emails.
How can you automate a compliance framework?
You can automate your compliance workflow by using software that follows rule-based instructions and eliminates human intervention. For fulfilling the above purpose, your process workflow logic would be converted to code, allowing the tracking and renewal of outstanding items automatically.
Moreover, all your compliance data can be accessed via a single dashboard. This removes the overwhelming reliance on spreadsheets that offer you incomplete or outdated information.
Advantages of using compliance automation
You can focus on what is more strategic and leave the less important tasks to business process automation, as it will take care of many of your manual operations. By limiting the repetitive tasks, you free your employees from spending time on manual tasks like routing policies, extracting data from reports, and correcting mistakes.
Here are a few benefits of implementing compliance automation:
- Cost-effective to deploy and update than manual workflows
- Reduced human error and reporting mistakes
- Limits the chances of a security breach
- Compliance reporting from a single dashboard
- Proactive risk management, as you get informed decisions based on real-time data
- Analyze third-party risks and compliance requirements in the background
What should be the components of a good compliance management policy in 2023?
Effective monitoring, auditing, and reporting.
The regulatory landscape, nature of customers, industry standards, and the organization’s business environment are evolving. You need to implement controls to assess the risk areas. Periodic audits can help you gauge the strength of the controls. You can also carry out surveys to test the organization’s compliance culture.
Assess the process for prevention, detection, and reporting of compliance-related violations
Review any past wrongdoings. Were there any loopholes that were misused? Address such loopholes, if any. Empower the designated authority/personnel to monitor, audit, and report any suspected wrongdoing. If subcontractors have access to your system, they should be familiar with the rules and be able to report any misconduct.
Training and communication
A “set it and forget it” approach can cause problems. You should check if the training provided to stakeholders and employees is meaningful. Compliance training should be mandatory for the relevant stakeholders, like the audit committee, POSH committee, and Board of Directors.
Quizzes and cases should be administered to gauge understanding, and employees should be aware of the concerned point of contact to submit suspected misconduct.
Mynd Integrated can help you leverage compliance automation
With an average of 10+ years of experience in labour laws and compliance-related activities, Mynd provides consistent support for different industries across India. We are well–recognized for lending highly efficient services. We customize our services to cover all obligations of our clients under various central or state-specific labour laws depending upon the industry and their locations or jurisdictions in India.
ACT (Active Compliance Tracking) offers end-to-end automated compliance management for organizations. ACT is configurable according to the industry requirement, and offers access to compliance-related information in a single window dashboard. ACT enables an online repository of documents, and real-time tracking of activities and reporting, giving you complete visibility and control.