You can't comply with everything, so don't bother trying

There is a misconception that to avoid legal or regulatory problems, a business must be in full compliance with every applicable law or standard. However, depending on the size and nature of an operation, a business can face a huge number of laws, regulations, and standards which become not just difficult to comply with, but impossible. That’s why setting out with a plan to comply with everything is only going to end in disappointment.

Fortunately, there is a way to navigate this complex web of requirements. The international standard for compliance management systems (ISO 37301), provides a clear way forward. Not all compliance issues carry the same level of risk, and your compliance management system should reflect that:

👓Identify

Start by understanding the full scope of laws, regulations, and obligations your business needs to comply with. This will vary by size, industry, geography, or the type of operations you conduct.

⚖️Assess

Once you’ve identified your obligations, assess the risks associated with non-compliance. Some compliance failures—such as those related to health and safety, environmental damage, or data privacy—carry higher penalties, legal repercussions, or reputational damage. Others will be lower priority, with minimal impact on business operations.

🥇Prioritise

Not all compliance obligations are created equal and will be different for every business. After assessing the risks, focus resources on the highest-risk areas. Naturally, you should prioritise compliance in areas where failure to comply could lead to the most severe consequences.

📈Implement and Monitoring

For high-risk compliance areas, establish controls and assurance activities. This can include clear procedures for addressing compliance issues as they arise, with mechanisms for continuous improvement.

Review and Adjust

As with all risk, compliance isn’t static. Periodically review your risk assessments and control framework to ensure they remain aligned with evolving regulations and business risks. Compliance isn’t about checklists and hours of effort attempting to control everything, it’s about protecting your business from harm. A risk-based approach, as outlined in ISO 37301, helps you by focusing on what really matters.

Talk with us today to learn about how ⚡Virtus Advisory⚡ can help you get started.