How A Holistic Compliance Approach Enhances Effectiveness

Regulators expect compliance officers to access and analyze data to monitor and test policies effectively and select metrics demonstrating program effectiveness. Organizations have more than enough data, but according to an article by Navex, its utility is often underwhelming, especially as regulatory expectations for compliance programs rise. This is where a holistic compliance approach can be effective.

Compliance teams often start with compliance-related systems like third-party due diligence and sanctions screening software. However, organizations should cast a wider net to uncover valuable data, leveraging compliance tools and resources from departments like Legal, Human Resources (HR), Audit, Finance, Information Technology (IT), and Procurement. A holistic compliance approach utilizing each of these functions can provide data that enhances the compliance program. 

Legal departments, for instance, may offer insights from contract management software, such as contract terms and compliance-related allegations. HR systems hold data on employee turnover, engagement levels, and management misconduct, which can highlight potential compliance challenges.

Other departments, like Audit and Finance, contribute data on control failures and payment anomalies, while IT provides information on cybersecurity incidents and policy access rates. Finally, Procurement offers statistics on third-party due diligence and tender processes. By engaging in these functions, compliance officers gain a holistic view of the organization’s culture and compliance risks.

Collecting and analyzing data from various sources strengthens the compliance program and aligns with regulatory expectations. This comprehensive approach fosters better understanding and management of compliance issues, ultimately benefiting the organization’s overall performance.