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Principles of a Strong Compliance Culture Cheat Sheet (DRAFT) by [deleted]

5 Principles of a Strong Compliance Culture

This is a draft cheat sheet. It is a work in progress and is not finished yet.


Strong compliance cultures don’t just happen; rather, they’re the byproducts of clearly stated values and the organi­zat­ional commitment needed to achieve them, the Continuity study said. Although cultures may differ based on the nature of each individual organi­zation, there are five principles that most if not all of them share

1) Compliance is Pervasive

Compliance is pervasive throughout the organi­zation, not just an isolated function that operates separately from the whole. Compliance and risk officers operate in active organi­zat­ion­-wide leadership roles and are involved in all major business initia­tives, including strategic planning, revenue genera­tion, marketing and other functions.

2) Compliance is invisible

Compliance is invisible, something baked into the business process that is unobtr­usive but always present, the study noted. Instead of being an ad hoc activity, compliance creates the standards against which all operations are measured and tested.

3) Compliance is a Dynamic

Compliance is a dynamic rather than static process, one that contin­ually adjusts to accomm­odate a changing landscape. Effective cultures are based on a standa­rdized, systemized approach that foster rather than hinder an organi­zation process and perfor­mance, identi­fying and implem­enting changes in the least intrusive way possible.

4) Compliance is Busine­ss-­Aware

Compliance is busine­ss-­aware, following realistic goals that drive revenue and growth while minimizing exposure to illegal and high-risk situat­ions. No organi­zation can be 100% compliant, the study said, but those that maintain a realistic approach will succeed more often than not.

Strong Compliance Culture

5) Compliance programs are Outcom­e-c­entric

Finally, compliance programs are outcom­e-c­entric rather than rules-­foc­used. When compliance is seen as a conduit to effective and profitable ways to conduct business in a safe and sound manner, its role as a roadblock to progress evapor­ates, and the organi­zation becomes more successful in the process.

Effective Compliance

Effective compliance is charac­terized by procedures embedded into existing workflows, and is achieved with a minimum amount of friction. It also accounts for human nature, knowing that not everyone will be a fan of the processes and their purpose. It also offers a realistic process, achieved at the lowest possible price-­point while still achieving the desired outcome. If done right, there will be less examiner criticism, the study said, which makes credit union operations more effective and everyone’s life easier.