Not only financial institutions and insurance companies are under increasing pressure to comply with legal and regulatory requirements and embed a compliance function within the organization. With a process-based compliance management system, companies strengthen their competitive position through efficient monitoring and reporting of compliance risks.
In general, compliance is understood as the adherence to laws and guidelines. In order to be able to quantify and assess the scope of the organizational compliance management, companies must first identify their risks. Compliance management, which is often embedded as internal controls, consists of clearly defined, risk-oriented control activities. Once controls are regularly tested, improved and adapted to new risks, compliance serves as a control mechanism. A digital software solution that does not detach compliance management but combines it with process management simplifies this
control mechanism. Legal requirements for the corporate compliance management result, among other things, from national circulars such as the German minimum requirements for risk management (MaRisk) or at European level from the Solvency II project. However, not only companies in the financial sector, but basically all organizations must ensure higher transparency. Keeping an eye on risks and defining suitable control measures to minimize the probability of occurrence of risks has become an inevitable task in many companies.
Compliance with legal regulations and the implementation of suitable measures are challenging tasks. But maintaining such a compliance management with e.g. the classic MS Office products, is only possible by accepting high expenses of time and labor as well as high error-proneness. By now, organizations realize that internal controls should be seen as part of daily business processes and that connections between specialized departments and IT have to be taken into consideration. Process-based compliance management facilitates the derivation of audit-related measures and controls and thus ensures audit security, which is required by law for e.g. banks and insurance companies. Therefore, the process-oriented approach is a suitable foundation for implementing the requirements of compliance management.
The process management system provides the instruments for the documentation, implementation, governance and monitoring of the processes - and thus also for the controls. The transparent allocation of risks and controls to business processes enables organizations to understand the internal controls as part of the daily business processes. Features facilitating the process documentation, the risk assessment, the monitoring and the reporting ensure that the entire compliance management can be embedded in the business process management.
The digitalization suite BIC Platform offers a holistic approach to enterprise risk management based on the globally recognized, methodical standard COSO (Commitee of Sponsoring Organizations of the Treadway Commission). The software conveniently supports organizations in implementing compliance measures. It meets the specific requirements of an internal control and can be scaled as required. Other features such as predefined analyses and reports, flexibly definable approval workflows and an integrated process portal enable a holistic and professional risk assessment across the entire process and IT landscape of your organization.
GBTEC offers comprehensive consulting services to facilitate an optimal introduction and long-term implementation of process-based compliance:
- Determination of initial situation of the compliance organization
- Definition of the compliance strategy and its organizational design
- Definition of the suitable process model for an efficient compliance management
- Identification, documentation and evaluation of risks and controls
- Secure and reliable governance and monitoring of the specifications up to the implementation of continuous improvement measures