Common compliance pitfalls and how to avoid them

The act of conforming to the laws, rules, policies, and standards that are relevant to an organisation is referred to as compliance. This can include rules and laws pertaining to matters like financial reporting, the environment, and health and safety, as well as rules and standards particular to the industry.

For businesses, ensuring compliance is crucial because it protects them from reputational harm as well as legal and financial threats.

An organisation can accomplish compliance management by putting in place a system to make sure it is adhering to all applicable laws and standards. This can involve putting policies and procedures in place, educating staff, and routinely reviewing and modifying the management system.

Common pitfalls to avoid when it comes to compliance and how to address them

Lack of awareness: Not being aware of the relevant regulations and standards that apply to your organisation can lead to non-compliance. It’s important to stay up to date and have a system in place to track changes in regulations.
Insufficient resources: Failing to allocate sufficient resources to compliance can lead to inadequate policies and procedures, as well as a lack of training for employees.
Incomplete or inadequate documentation: Poor record-keeping can make it difficult to demonstrate compliance and can lead to problems if there is an audit.
Poor communication: If employees are not aware of the company’s compliance policies and procedures, it can lead to mistakes and non-compliance.
Lack of a system for tracking and correcting problems: If problems are not identified and addressed in a timely manner, it can lead to ongoing non-compliance.

To address these pitfalls, it’s important to have a robust compliance program in place that includes awareness training for employees, sufficient resources dedicated to compliance, thorough documentation, effective communication, and a system for identifying and correcting problems.

It’s also a good idea to conduct regular audits to ensure that the organisation is meeting all relevant regulations and standards.

How to conduct a compliance audit

Below we have outlined a general approach to conducting a compliance audit.

Determine the scope of the audit: Identify which regulations and standards will be reviewed and the specific areas of the organisation that will be included in the audit.
Gather relevant documentation: This may include policies and procedures, training materials, and records of compliance activities.
Conduct on-site observations: This may involve visiting different departments and observing processes and procedures in action.
Interview employees and management: Ask questions about their knowledge of compliance policies and procedures and their experience with compliance in the organisation.
Review documents and records: This may include reviewing records of compliance activities, such as training logs and incident reports.
Analyse the information gathered: Use the information gathered during the audit to evaluate the organisation’s level of compliance.
Prepare a report: Document the findings of the audit and any recommendations for improvement.
Review the report with management: Discuss the findings and recommendations with management and develop a plan to address any issues identified during the audit.
Conduct follow-up audits: Follow up on the implementation of the recommendations and conduct additional audits to ensure that the organisation is maintaining compliance.

It’s important to have a qualified and experienced team conduct the audit to ensure that it is thorough and accurate. It’s also a good idea to involve employees in the audit process, as they may have valuable insights and may be able to identify areas for improvement.

Key characteristics of a compliant organisation

Clear policies and procedures: A compliant organisation has well-defined policies and procedures in place that outline how to comply with relevant laws, regulations, and standards.
Trained employees: Employees are aware of the organisation’s compliance policies and procedures and are trained on how to adhere to them.
Effective communication: There is open and effective communication about compliance issues and concerns within the organisation.
Regular audits and reviews: The organisation conducts regular audits and reviews to ensure that it is meeting all relevant regulations and standards.
Continuous improvement: The organisation is committed to continuous improvement in compliance and is proactive in identifying and addressing potential areas of risk.
Accountability: There is a clear system of accountability in place to ensure that employees are held responsible for adhering to compliance policies and procedures.
Transparent: The organisation is transparent about its compliance efforts and is willing to share information about its compliance program with relevant stakeholders.

Overall, a compliant organisation is proactive in identifying and addressing potential areas of risk, has well-defined policies and procedures in place, and is committed to continuous improvement.

Are you looking to improve your organisation’s compliance and workplace safety?

Our team of consultants has extensive experience helping companies in a variety of industries to establish and maintain robust compliance programs. We can help you identify and mitigate risks, develop and implement policies and procedures, and provide training to ensure that your employees are aware of and adhere to relevant regulations and standards.