Here are the mistakes that your compliance program can make compliance program program should avoid.
The modern business environment requires compliance programs compliance effective in avoiding criminal liability and ensuring ethical and law-abiding operations. In addition, this regulatory compliance reinforces the company’s image and reputation in the eyes of society. However, it is not without its challenges.
1. Deficiency in updating
Laws and regulations are constantly evolving. Therefore failure to review and update the compliance can regularly lead to unanticipated risks and inefficiencies in the system. It is vital to be aware of the updates in the whistleblower protection law and in the requirements of the whistleblower of compliance program requirements.
2. Incomprehensibility of compliance policies
It is essential that the guidelines are straightaway, clear, and accessible to all members of the company. Avoid complex legal terminology and focus on simple and understandable language.
3. Neglecting the analysis of specific risks
Above all, failure to identify and assess the specific risks inherent to the company and its sector is one of the most serious errors. Most importantly, it is crucial to adapt the program to the particularities of the activity and the specific processes of the company.
4. Lack of involvement of management and area managers.
Management must establish a “tone from the top”, while area managers must disseminate and enforce policies in their respective departments. The corporate social responsibility policy is a clear example of how management involvement can make a difference.
5. Failure to implement complaint channels
Obviously the whistleblowing channels are essential for employees to report irregularities. It is essential to consider mandatory whistleblower channels and to know the advantages of external whistleblower channels.
6. Confusion between training and awareness
Both concepts are vital, but they are not the same. While training focuses on teaching compliance policies and measures, awareness-raising seeks to cultivate an ethical culture in the company. Significantly not only to train employees but also to make them understand the importance of what they learn.
7. Negligence in the review of business partners and suppliers.
Failure to perform adequate due diligence on partners and suppliers can result in unforeseen risks. Above all, it is essential that a thorough assessment be carried out and ensure that they comply with applicable regulations.
8. Relying on "fake compliance
Implementing a generic program, without customization or concrete measures is another mistake to avoid. An effective compliance program needs to be tailored to the specificities and risks of the company in question.
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