Do you have a newly acquired Australian Financial Services License? Or perhaps your existing business has gone through some significant changes and your compliance policies need updating? Whatever the reason for your new compliance processes, it is important you implement them correctly to ensure they are adhered to throughout your business.
What Are Compliance Processes?
Compliance processes and policies are behaviours and documents which are designed to ensure a business follows all necessary government regulations and laws. Compliance processes are repeatable systems which can be used to ensure the company is always meeting their compliance requirements. These processes can include risk assessment frameworks, a mechanism which allows for the tracking and measurement of risk, documenting defined risks and how they can be controlled and assessing the effectiveness of such controls. Compliance processes should also be accompanied by remediation processes for when the unexpected happens. It is important you are prepared for every eventuality.
Particularly in the world of financial services, it is vital that a business implements compliance processes which are followed by all employees to protect themselves. Compliance processes are a form of risk management, designed to protect the business as well as the client. If a business is found to be non-compliant, the subsequent fallout can be devastating, both financially and to the business’ reputation.
What Can A Compliance Process Do For Me
Put simply: a compliance process ensures your business is complying with all necessary regulations and alleviates some of the biggest industry risks. They work as part of your risk management systems and provide instructions and processes on how to avoid identified industry risks. Without a compliance process in place, you are vulnerable to potential liabilities and could be putting your business in jeopardy. Business owners recognise that compliance training and compliance management is far more cost efficient than dealing with the implications of non-compliance issues.
How Do Compliance Processes Work?
It is not enough to simply draw up a compliance document and file it away. Remaining compliant with all applicable legislation and regulations requires all members of your business to adhere to these processes. Compliance training should be regularly completed by all employees. This training can be tailored to your company and demonstrates the responsibilities of all employees when it comes to remaining compliant. We recommend training is completed at least once per year. Compliance documents should also be annually updated to ensure they are always current.
Who Needs Compliance Processes?
Most businesses will require some kind of compliance process or program. However, it is particularly important in the financial services industry. If you are setting up a new business in this area, make sure that you have a comprehensive set of compliance processes which can protect you from day one. These processes will protect you from regulatory risks and act as guidelines for your company for all services you provide.
Leave a Reply