Regulatory compliance are the set of goals that organisations aspire to achieve to ensure that they are aware of the laws and are taking steps and put in effect relevant laws, policies and regulations. Regulatory requirements may change from place to place and vary from time to time. They also change from product to product and are generally in the line of safety, security, business ethics, business processes and businesses standards. Failure to adhere to such rules may result in penalisation. You might either be fined, you may face criminal charges, have your business license revoked or sometimes face more than one charges. Furthermore, it can also cause some indirect repercussions such as losing business reputation and losing the goodwill of consumers, as well as the irreparable loss of life, and property.
The Union Carbide might have skipped direct penalties in the Bhopal gas tragedy, but lost its reputation, and base of operations in India.
Importance of Regulatory Compliance
Regulatory compliance is a win-win situation for everyone.
1) The consumers are safe from malpractices of companies since products follow and conform to a set standard of rules, specially designed keeping the consumer in mind.
2) The business owners get an increased prestige by being accredited by regulatory compliance boards and bodies, thus protecting their reputation and capitalizing with a certificate of trust.
3) Managers and directors can avoid career termination and criminal charges.
4) The earth is safe from detrimental practices causing pollution, damage to flora and fauna.
How Modern Companies are Using Regulatory Compliance Management Software
In today’s world, with an increasing number of rules and regulations, and a need for transparency, companies are looking for more efficient, trustworthy, and cheap ways to employ and comply with the regulatory requirements in their business. Regulatory compliance management software is the need of the hour since every organization needs to be in tandem with the latest requirements. Hence, they need to be able to look for new regulations passed by the regulatory bodies, update and adapt to the ever-changing guidelines of these bodies, and be able to properly apply it across the entire organization. Just thinking about all of these processes is giving us a headache. The right choice is to employ regulatory compliance software solutions.
Why use Regulatory Compliance Management Software?
The benefits of using regulatory compliance software are listed below:-
1) Compliance Reporting and Audit Management
Regulatory compliance management software continuously monitors and reports key performance indicators of the business to ensure compliance with the regulatory board. They also help in simplifying the workflow and collaboration process in the entire organisation.
2) Monitoring Transactions
It helps to monitor financial transactions and transactional applications with automated tools, thus reducing audit costs.
3) Transition Management
Regulatory compliance software can find and track new regulations and provides organizational tools to allow users to easily adapt them throughout the organization.
4) Task Management
They assign tasks to specific individuals, track their progress, deliver real-time alerts on the work progress, thus increasing accountability.
5) Policy and Enterprise Risk Management
Regulatory compliance management software stores policy documents, processes, and portfolios in easily accessible locations, which can be easily looked upon by all employees.
The software also helps to focus on urgent high-risk tasks by prioritizing tasks based on their risk level.