Due to fraud, a typical organization loses almost $3 million in annual revenue, according to Harvard Business Review.
That’s why it’s crucial for a company to understand why compliance is important in the workplace and how it can help the organization as a whole. Let’s look deeper into compliance and its purpose for your business.
What does compliance mean?
Compliance means adhering to rules and standards governing an organization. In order to identify compliance in business, these policies should be well thought of and recorded accordingly.
What is compliance management?
Compliance management is the process used to track and make sure that all information in the system is in place. The methods of securing that the regulations are being followed.
Reasons why compliance management is important
1. It builds customer loyalty
The loyalty from the customer influences every metric of a business, it will help the company in growing and keep the profits high. In other words, loyalty is about the ability of happy customers to trust the product and services that the sales reps have offered to them, and a customer who shows trust in the product is more likely to purchase again.
2. Company sustainability
As your business grows, having an automated compliance system supports all the necessary elements for expansion. Addressing issues manually can only take you so far and will eventually result in backlogs. Having a reliable compliance management system not only takes off the burden on your employees but further supports company sustainability and growth.
3. Company sustainability
As your business grows, having an automated compliance system supports all the necessary elements for expansion. Addressing issues manually can only take you so far and will eventually result in backlogs. Having a reliable compliance management system not only takes off the burden on your employees but further supports company sustainability and growth.
4. Cost of non-compliance
The last yet most significant reason why compliance management is important in the workplace is the cost it brings when neglected. If a company fails to comply with government or industry standards, it can result in fines or cancellation of certifications. Non-compliance in company policies may also compromise safety and can result in business disorganization.
Addressing compliance issues
Some things may have come up during the process of implementing compliance. In situations where issues arise, you may solicit feedback and keep track of the issues before resolving them. Continuing to build a strong compliance foundation and a culture with compliance awareness will give your organization the edge on compliance management.
As your business grows, daily transactions become numerous and issues can be more complex. Surely, for these reasons, compliance management is no doubt a necessity in your business. Laying down specific rules and regulations is one part of building a strong business foundation. Making sure that compliance management does its job to be as paramount in that foundation as any other business process.