Is Your Compliance Management Making a Difference? (Board Perspectives, Risk Oversight Issue 35)

Compliance management consists of an organization’s processes for adhering to laws, regulations and policies. To be effective, it requires metrics, measures and monitoring that provide assurance to management and the board of directors that established policies and procedures for fostering compliance are performing as intended.

Without effective management of the compliance risks that matter, the organization is reactive at best and noncompliant at worst. Companies should ensure that established policies and procedures provide reasonable assurance that the organization is adhering to the requirements of applicable laws and regulations and policies. This issue describes key elements of an effective compliance program for boards to consider.