A corporate compliance program is a plan designed to detect or prevent certain law violations that may be caused by employees, officers, agents, or directors of businesses. However, “corporate” is a misnomer, as these plans apply to any sized business – large or small. So what are the factors that make up a successful corporate compliance program?
LASTO: Leadership, Assessment, Standards, Training, & Oversight
To have any success in your compliance program, it must first be built from the top down with support from senior level management and compliance officers. The program should have strong ethics and be openly endorsed with an unambiguous, visible, and active commitment towards it.
- Risk Assessment
Aside from following rules and procedures, a successful compliance program looks at the company as a whole and takes into account all the risks the company is faced with. Risk assessments are designed to give your business a comprehensive view of the entire picture and can include:
- Country Risk
- Sector Risk
- Business Opportunity Risk
- Business Partnership Risk
- Transaction Risk
- Standards & Controls
Every corporate compliance program needs to have these minimum three controls: code of conduct, standards and policies, and procedures. However, due to recent changes made to the laws, the FCPA now requires you to run background checks, prove financial stability, and uncover any improper government associations. This is done to make sure your program is legitimate, and not just a piece of paper.
The most important part of having a successful corporate compliance program is the training of your staff, vendors, and compliance officers. If a violation occurs, the people you train, how you train them, and how often training occurs will be heavily looked into. During training, you’ll have the ability to correct any potential issues before a violation can occur.
- Monitoring – commit to reviewing your program in real-time. If issues or gaps are found, act quickly to address and remediate them.
- Auditing – an audit alone is not an effective form of monitoring. Your program should have a separate auditing function that works separately from monitoring.
- Remediation – police yourself on compliance. Once problems and gaps are found through monitoring and auditing, respond and fix them as quickly as possible.
Corporate Compliance Program from Nerds Support
If you’re not sure how to go about creating and implementing a corporate compliance program of your own, let the skilled team at Nerds Support step in and take over. They’ll be able to fun all the assessments needed to find the gaps that may lead to a violation as well as put in place standards and controls for your company. They can train your staff and provide the oversight needed to make sure you don’t have any mistakes that lead to a compliance violation! Check out what they can do for you.