In this article we’ll look at the changing face of compliance culture in Australia and what is driving it, and discuss the innovative solutions that organisations are using to improve compliance efficiencies and outcomes.
Over the last few years there has been a noticeable shift in the compliance function within organisations. Where the role of compliance was once to simply ensure the company was meeting all applicable external and internal regulatory and legal requirements, today it has evolved into a far more active and integrated function.
So what has prompted this change, and what does it mean for compliance in Australia?
There are a range of factors that have impacted this shift, from rising risks and new regulatory requirements and standards, to an increased focus on creating a positive compliance culture within the business.
What is compliance culture and how has it changed?
Achieving compliance within an organisation relies on the cooperation of everybody, from the C-suite to the newest recruit. This means staff at all levels must have an awareness and understanding of the values of the organisation and the internal and external regulatory requirements and standards they must meet. In the past this information may have been delivered via a yearly workshop or training module, but today, it is widely recognised that a compliance culture is critical for successful compliance outcomes.
While building a culture takes time, according to Deloitte’s State of Compliance Survey 2021, there is a growing positive shift in the mindset and attitude towards compliance culture. This is likely due to a stronger focus on promoting cultural alignment and awareness within businesses. For compliance culture to continue to grow, management must lead from the front by demonstrating accountability and actively promoting compliance through their actions, and by supporting and educating their teams on both current and new compliance requirements.
Understanding new standards for compliance
One of the challenges for compliance managers has been keeping up with the introduction of new regulatory requirements and standards. In particular, the recent introduction of ISO 37301:2021, which replaced the previous 2014 standard, has required close attention. The new standard ‘provides guidelines for establishing, developing, implementing, maintaining and improving an effective compliance management system within an organisation’. It applies to businesses of all sizes, in all sectors, meaning all compliance managers must be up to speed with the new standard and find ways to meet the new and existing requirements through effective compliance management systems.
Leveraging technology solutions to improve compliance outcomes
To manage the ongoing changes and complexities of compliance, some organisations are turning to innovative software and technology solutions for help. While a robust compliance software solution is a must for mid to large size companies, automated tech-driven solutions are seeing a rise in interest. In particular, Regulatory Technology (RegTech) has the potential to significantly improve compliance efficiency and effectiveness.
According to the State of Compliance Survey 2021, 54% of respondents currently use some form of RegTech to automate and enhance their compliance activities. While this figure is still relatively low, it is likely due to a lack of knowledge and technical skills required to implement it, as well as budget constraints. However, as compliance departments seek new ways to operate more efficiently in the face of growing demands, RegTech may become a necessary tool for effective compliance management.
Compliance matters more than ever
In the face of growing risks and changing requirements, compliance matters more than ever. The challenge for organisations is to continue to grow a culture of compliance while also increasing efficiency. It’s clear that technology can help to make management of compliance easier through the adoption of automated processes, but importantly, these efficiencies can also help to increase compliance, delivering positive outcomes to the business and its team.
If you’d like advice on how our Compliance Module could be the right fit for you, get in touch with our team on 03 9918 0050 or register for a free trial today!
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