9 Tips for Businesses Struggling to Maintain Compliance
Consultant Magazine
9 Tips for Businesses Struggling to Maintain Compliance
Navigating the intricate maze of compliance can determine the success or failure of a business. Insights from top industry leaders like Founders and CEOs shed light on this critical issue. The first piece of advice emphasizes the importance of implementing daily compliance checks, while the final takeaway suggests automating compliance to reduce stress. Discover a total of nine expert insights that can transform a company's approach to maintaining compliance.
- Implement Daily Compliance Checks
- Invest in Compliance Management System
- Establish a Proactive Compliance Approach
- Build Compliance into Company DNA
- Shift Compliance Culture
- Make Compliance Your Competitive Edge
- Set Up Streamlined Tracking System
- Adopt Proactive Compliance Approach
- Automate Compliance to Reduce Stress
Implement Daily Compliance Checks
As Chief Compliance Officer at PwC overseeing 15,000+ audits annually, I implemented a "Daily-5" compliance protocol that reduced violations by 87% and saved our clients an average of $2.1M in potential fines.
The game-changer was shifting from quarterly reviews to 5-minute daily compliance checks. Every morning, department heads would verify five key compliance metrics specific to their area - we found this prevented 92% of common violations before they could escalate.
For example, when our healthcare clients adopted this system, they reduced HIPAA violations by 76% in the first quarter. The secret was making compliance a daily habit rather than a dreaded quarterly event.
Rather than overwhelming teams with complex regulations, we broke requirements into simple daily tasks. A medical practice would check teams using this method actually spent 60% less total time on compliance while achieving better results.
Invest in Compliance Management System
The key piece of advice I would offer businesses struggling to maintain compliance is to invest in a solid compliance management system from the start. This system should track all relevant regulations, deadlines, and necessary documentation. At Software House, we implemented a centralized system that keeps us updated on industry standards and regulatory changes, ensuring we remain compliant across various regions. It also helps us spot potential issues early and address them before they become problems.
Moreover, I would advise businesses to foster a culture of compliance within the organization. Compliance isn't just a checklist; it needs to be a mindset that's integrated into every level of operation. Regular training, clear communication, and accountability are essential. When the entire team is committed to staying informed and following procedures, compliance becomes much easier to manage and maintain, leading to long-term stability and trust with clients and stakeholders.
Establish a Proactive Compliance Approach
For businesses struggling with compliance, my best advice is to establish a proactive approach rather than a reactive one. This means creating systems and processes that not only meet the standards required today but also anticipate future changes. For example, I once worked with a manufacturing business in the UAE that was on the brink of closure due to non-compliance with evolving environmental regulations. They had no system in place to track regulatory updates or implement necessary changes efficiently. Drawing from my experience in telecommunications, where I managed strict compliance requirements across a heavily regulated industry, I helped them develop a tailored compliance framework. We introduced automated reporting tools, assigned compliance officers with clear accountability, and scheduled regular audits. Within six months, they not only met their obligations but also turned compliance into a competitive advantage, securing contracts with eco-conscious clients.
This transformation highlights how my background both in the army, where I learned discipline and systems-thinking, and in business, where I scaled operations while staying compliant, equips me to guide companies through challenges like these. Compliance is often seen as a burden, but with the right systems and mindset, it can become a source of efficiency and trust with stakeholders. My MBA in finance also allows me to assess the cost-benefit of these changes, ensuring businesses stay profitable while meeting standards. The result isn't just survival but growth on a solid, compliant foundation.
Build Compliance into Company DNA
From my experience at N26 handling banking operations and later at spectup working with numerous startups, I've found that the key to compliance isn't just knowing the rules - it's building it into your company's DNA from day one. I remember during my banking apprenticeship at Sparda, compliance felt like this big, scary monster, but now I help startups understand that it's really about creating simple, repeatable processes that become second nature. At spectup, we always tell our clients to start with a compliance calendar and checklist system - something I wish I'd had when managing garnishments and bankruptices at N26.
One approach that's worked well for our clients is designating a "compliance champion" within the team who keeps everyone accountable and up-to-date on requirements. The most successful companies I've worked with, both at Deloitte and now at spectup, treat compliance as an ongoing process rather than a one-time checklist to complete. Regular training sessions and updates are essential - we recommend quarterly reviews to catch any issues early before they become problems.
Shift Compliance Culture
The best piece of advice for businesses that struggle to maintain compliance is a shift in culture. Understanding that compliance is a key part of your business, both strategically to maintain your reputation and financially to avoid significant fines - or worse - your business's ability to grow.
From organizations that I've helped foster this change in, once this shift in culture is possible, maintaining compliance becomes less burdensome for all involved. It is less of a battle, and more of a conversation about what the regulations are trying to accomplish, which allows the business development teams and senior leadership to see how to best grow the business without having significant regulatory issues.
In particular, this allows the compliance team to proactively when business ideas are brought forward, and identify gaps through compliance and AML effectiveness reviews. While the regulator is your partner in maintaining compliance, their function is not to uncover issues in your compliance program. At that point, the damage is already done.
Independent compliance and AML effectiveness reviews ensure that businesses' policies, procedures, and systems are both compliant and adaptable to risks as they are always evolving. By investing in a proactive approach, it demonstrates to a regulator that your organization has a commitment to compliance and it will build trust towards regulators, customers, and stakeholders alike.
Make Compliance Your Competitive Edge
Compliance is more than a set of rules; it's the foundation of trust and integrity in business. Yet, for many, it feels like a never-ending chore. My advice is to stop treating compliance as a checkbox exercise. Instead, make it your competitive edge.
Start by translating complex regulations into actionable, team-friendly practices. Equip your workforce with intuitive tools to track updates and simplify processes. Most importantly, appoint a "compliance ambassador" who inspires accountability rather than enforces fear. When compliance becomes a part of your company's DNA—woven into every decision, you'll not only meet standards but exceed them, earning the trust that sets you apart in a crowded market.
Set Up Streamlined Tracking System
From my experience, businesses struggling with compliance should prioritize setting up a streamlined system for tracking regulations and deadlines. Regularly updating internal policies and conducting compliance audits can prevent issues before they escalate. Automating key processes, like tax filings or data protection measures, saves time and reduces human error. Investing in expert guidance-whether through consultants or dedicated staff-can be invaluable, especially as regulations evolve.
Adopt Proactive Compliance Approach
One piece of advice I would give to businesses struggling to maintain compliance is to adopt a proactive, rather than reactive, approach. This means embedding compliance considerations into your everyday operations, not just viewing them as an afterthought or a checklist item. Start by conducting regular internal audits and risk assessments to identify vulnerabilities before they become costly problems. A strong compliance culture begins with leadership, so ensure your team understands not only the 'what' of compliance, but also the 'why.' Understand that you are maintaining compliance to protect your organization's reputation, reliability, operations, and long-term success.
Automate Compliance to Reduce Stress
Compliance can feel like a hassle, but it's really about making your business stronger. My advice is to automate as much as possible and use tools that help you stay on top of regulations. By doing this, compliance becomes part of your routine, not something you worry about at the last minute. It saves time, reduces stress, and lets you focus on growing the business.
