The most obvious and significant backing for compliance training objectives is from the boardroom. Compliance training should be a top priority for executive board members.
In the ever evolving regulatory landscape of businesses today, the requirement for a well-informed approach to business strategy that is in compliance with the applicable regulations and rules, to the letter and spirit, is more important than ever. This approach considers the internal and external values and determines the tone.
To this end, awareness of compliance is highly valuable, but alongside commercial objectives and the day-to-day concerns that drive business, compliance training doesn't always stay at the top of the list. Training for compliance should be viewed by the board as vital for the survival and growth of the company.
Employee awareness means employee engagement
Organisations of all types and sizes are pursuing the development of an environment that promotes engaged employees and it is not hard to understand why. Engaged employees are active, productive and always on the go. They are reliable stewards for corporate value and trustworthy performers. To be able to perform their duties however, they require motivation to be engaged. Compliance training can give them this motivation by using their knowledge of content and understanding of good conduct expectations. Employees who are educated about the requirements for compliance and expectations of regulators are more likely to look up to their managers for examples of accountability and integrity.
Management is delighted by the "warm glow"
Managers who ensure that their employees understand their responsibilities can feel a 'warm glow effect'. This is when they are seen by their employees as role models, and establish the norm. The positive boost of this appreciation reinforces the power of integrity to create a lasting impression in the workplace.
It's always a positive thing to be recognized as an instance of someone doing the right thing at the right time and for the right reason. All other things being equal, every manager would prefer to be known for his or her outstanding integrity, not considered to be a failure of moral standards. This serves as motivation to be a positive influence on the compliance culture and to help set a attitude at the top.
Reputational risk reduction is vital.
Executive boards face the brunt of public scrutiny and criticism when events leading to reputational risk occur. If the company is on the front page of the newspaper in a critical light Board members are called to account to the public and will be looked at to restore trust and recommend the best way to take.
Compliance training helps employees at all levels to be aware of the importance of noticing and reporting fraudulent or unethical behaviour when they see it. This is the first step towards stopping and reducing the risk to the reputation of businesses. In public companies, enabling whistleblowers as well as, for private companies avoidance of a culture of fear, are key for the transparency that's required to avoid major exposure to risk to reputation.
Dialog and clear communication are essential to efficient governance
Governance structures can only be as effective as the compliance sensitivity and understanding of employees who work within them. It is essential to establish clear expectations and discussions on situations, dilemmas and suggestions should be commonplace at work. Look at more info to find out additional hints on Training.
While boards are able to create the most robust and well-thought-out governance architecture within their organizations, individuals aren't well-equipped to make correct decisions and adhere to the guidelines. Adequate training supports positive behaviour, which in turn makes control frameworks more effective.
Relevance is a key component of risk management
When it comes to managing the risk, executive boards usually have complicated agendas. In many industries, such as financial services, these can be highly technical and well-organized that require specialist knowledge and constant discipline and attention. Compliance risk management also includes being aware of a continuously evolving regulatory and legal environment. But it can be made an element of business usual in all areas of the company for all employees to take on personal accountability. Employees can gain an understanding of their place across all levels of the organisation and become more proficient in the area of compliance risk management.
Executive boards that wish to promote corporate values and social responsibility, sustainability integrity, integrity in the workplace and organizational excellence can use compliance training to motivate and demonstrate the results. A practical, rules-based approach to risk management that also pay close attention to the development of corporate values can help board members steer their organisations to future growth and success.