Shoeb Javed is chief product officer at iGrafx.
Navigating the intricacies of compliance and risk management can seem overwhelming for businesses, especially those operating in heavily regulated industries. The rules are complex and the stakes are high, and the old ways of managing compliance aren’t enough anymore. By using smart tools and clear processes, businesses can handle tasks more efficiently, reduce risks and make audits less stressful.
Many organizations face a daunting array of compliance requirements, both external and internal. Regulatory demands vary across industries such as financial services, healthcare, manufacturing, retail and technology. Businesses may also have to contend with regulations that differ by country and even by region.
For example, a tech company aiming for SOC 2 or ISO certifications can use a process-centric approach to streamline the effort, tying specific compliance requirements to daily operations. Similarly, financial institutions face challenges like anti-money laundering and customer verification, while healthcare organizations must navigate patient privacy laws like HIPAA. With so much on the line, businesses need to take a proactive approach.
Mapping Processes, Risks And Controls
The key to a process-centric approach is mapping out business processes and connecting them directly to compliance needs, risks and controls. This starts with documenting and centralizing all process information into a single system. It’s like building a roadmap—you need to know where you’re starting before you can figure out where you’re going. Without a clear understanding of how processes are executed, it’s impossible to predict where risks might surface.
Once that’s done, organizations can link risks to specific activities and define the controls to manage those risks. For instance, if a supply chain issue could disrupt operations, you might create controls like automated inventory alerts or backup suppliers. Compliance requirements can be tied directly to processes; for example, a bank could map anti-money laundering steps to its customer onboarding process.
This initial mapping step lets businesses adapt quickly to regulatory changes. The affected processes can be identified and updated promptly if a new rule is introduced.
Fixing Problems Before They Happen
One of the benefits of a process-centric model is how it can simplify audits and prevent issues before they arise. Centralizing processes, risks and controls in one place makes it easy to demonstrate compliance during audits. Instead of scrambling to gather information, organizations can present auditors with a clear, comprehensive map of their compliance efforts.
Process monitoring also helps you catch problems early. Tools like process monitoring and process mining let businesses see how things are actually running and identify deviations or skipped compliance steps early on. When risk events occur, predefined controls can be automatically activated. This saves time and reduces the risk of human error. The automation acts like a safety net, catching issues before they escalate.
Getting Started
Switching to a process-centric compliance approach doesn’t happen overnight. Here’s how to break it down:
1. Centralize Your Process Information. Gather everything in one place, including process models, operating procedures, roles and responsibilities. Having a central repository makes audits and reporting much easier.
2. Track Regulatory Changes. Tagging regulations to specific processes makes it possible for businesses to assess the impact of regulatory changes quickly. That way any change in compliance requirements triggers a report identifying the affected processes.
3. Keep Information Updated. This isn’t a “set it and forget it” situation—keeping process documentation current requires ongoing effort. Assigning responsibility for periodic updates ensures the system is accurate and reliable.
4. Use The System Every Day. The best way to ensure your system stays up-to-date is to make it part of daily operations. When people rely on it regularly, it’s far less likely to become outdated.
Adopting a modern, process-centric approach to compliance and risk management is like building a well-oiled machine. When each component works smoothly together, the whole system becomes more efficient and resilient. As a result, businesses can shift from putting out fires to proactively managing risks and compliance challenges.
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