Compliance has moved from a general term banded around by
firms to a highly specialised subject. Over recent years compliance has
developed in to its own organisational department within many of the best DCA’s.
However, every member of a team has their part to play in a compliant organisation.
There is also now an important need to show evidence of doing the right things.
The arena of compliance can be broken up in to three areas of consideration:
o
Governance
– This is the overall management approach to compliance,
with Directors having ever greater responsibility for poor compliance, governance
considerations are becoming ever more important. Firms with compliant cultures
have weathered the economic crisis better than those who didn’t.
o
Risk
– The process of identifying risks and putting processes in place to manage or
prevent them. It is at an operational level where risks are easiest to identify.
This is why it is important to have feedback systems in place so anyone within
a company can report their concerns.
o
Compliance
– Is the idea of conforming with the industry rules and regulations. However,
as time goes on there are ever more rules and regulations to meet.
There
is a need to plan for all areas of your business, with some high-risk items being
outsourced to reduce the risk of poor compliance. It is important to be
confident that you are compliant as bad practice attracts unwanted media
attention in turn leading to reputational risk through complaints. Therefore it
is important to have protection in place in the first place, even if there is a
cost to its implementation as the long-term savings could actually save an
organisation.
(Adapted from Credit Today, Summer, 2012)
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