Compliance: What every CEO needs to know?

Why is compliance so important?

Legal and regulatory compliance is increasingly becoming one of the key strategic pillars to not only retaining a license to operate and preventing costly incidents but also a competitive advantage for amongst others brand recognition, preferred employer status to attract talent, marketing, preferential supplier status, pro-active positioning for the future and investment risk profile depending on the industry and organisational size.

Sustainable strategic advantage of any enterprise is one of the main responsibilities of the CEO and the executive team. To establish and maintain a sustainable strategic advantage the CEO requires accurate intelligence to direct strategic compliance related deliberations and decisions The focus of this article centres around the minimum intelligence required by the CEO to prevent either inertia or planning in the absence of fact.?

What type of intelligence is essential?

Strategic compliance intelligence can be categorised into four distinct categories

Compliance awareness

Indicators of awareness, understanding and commitment amongst all relevant staff at all levels in the organisation to both the collective and individual specific legal, regulatory and standards compliance requirements

Key information includes:

• Training requirements met/overdue
• Awareness and understanding of documented requirements
• Awareness of periodic compliance requirement adjustments

Compliance monitoring

Indicators of effective monitoring and communication of compliance trends in the organisation and the collective appreciation and understanding of the implications and reasons for compliance level variations at any given point in time.

Key information includes:

• Compliance to relevant legislation and international standards
• Risk exposure to due to noncompliance
• Compliance to internal policies and procedures?
• Recurring non-conformances

Compliance assurance

Indicators of actual compliance assurance effectiveness and discipline to identify and assure timely and sustainable preventative and corrective action to address, maintain or improve compliance trends.

Key information include:

• Checks and inspections completion rate and quality?
• Capacity for the work that needs to be done
• Task and corrective action completion rate
• Overdue maintenance items

Compliance optimisation

Indicators on how compliance status is exploited to provide opportunities for sustainable advantage in any of the various areas of commercial competition.

Key information includes:

• Trends in nonconformities
• Risk status improvement trends
• Compliance trends and continuous audit results

How can Ariscu assist?

Ariscu Insights uses our best-of-breed technology processes to analyse data and deliver actionable information?to decision-makers. The purpose is?to assist corporate executives, business managers, and other operational workers in making better and informed business decisions. Ariscu Insights provide historical, current, and predictive views of compliance trends as useful guide into maximising compliance awareness, improving monitoring effectiveness, identifying best assurance practices, and recognizing ways to optimise compliance management processes.

What can Ariscu Insights provide?

Ariscu Insights tracks the following key metrics to include more processes and activities to help improve performance.?

For more information on compliance importance and our management processes to optimise compliance visit here: https://www.ariscu-africa.com/post/compliance-what-every-ceo-needs-to-know

By Louis Ferreira, Managing Director of Ariscu