If you observe the results of various regulatory compliance surveys across multiple industries, the results of most of the surveys are pretty similar, however some of the results were quite disturbing. When asked about top management’s perception towards regulatory change management and regulatory compliance, management viewed it as a necessary evil and you would see comments such as:
“management views regulatory compliance as a deterrent to making the firm’s revenue objectives,”
“there is inadequate commitment from senior executives,”
and
“there is inadequate authority and empowerment from senior management,” etc.
This indicates that many firms, irrespective of which industry they are in, do not consider their firms to be complying with the requirement and do not provide the necessary authority, empowerment, independence and adequate resources to their regulatory compliance professionals to meet regulatory compliance objectives.
I am not going to get into the consequences on non-compliance; that is another topic all together. This blog will focus on what top management needs to do mitigate their risks, increase reliability and sustainability.
The key is that top management needs to change the way they think and that begins with a belief system. They need to believe in the fact that effectively addressing regulatory change management issues will reduce their risks, increase reliability, sustainability , quality and yield a ROI long-term in the form of reduced OPEX, increased efficiency and productivity, margin expansion resulting from employee safety, reduced employee turn-over and building quality products. Once the belief and commitment at the top is there, management will chase the right activities that meet regulatory change management and corporate objectives.
360factors Inc. is an Enterprise Risk and Compliance Management Company and is the winner of GRC Software 20/20 Award 2014. Its flagship Regulatory Compliance Software Predict360, uses unique mapping and cognitive technologies to provide regulatory insights, predict risks and improve operational excellence, sustainability and margins for banking, finance, oil&gas;, EHS, power sector and IT industries.
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