How To Choose The Right Compliance Technology Tool

Compliance technology is gaining rapid popularity in the corporate circuit, as it equips the companies to detect the compliance issues and address them effectively. Although the market of compliance technology is at an embryonic stage, most companies prefer to purchase related software to make compliance integral for their businesses.

The companies intending to install compliance software in their operations can begin by deciding what has to be documented. The next step is to insert necessary controls for the documentation and then comes automation. Most of the companies have already crossed the first two stages and are currently in the process of automation.

Study the Products Available In the Market: With increasing demand, competition in the compliance technology market is heating. Players in the industry are trying to cope up with the intensifying competition by adding new products to their existing product portfolio. This has resulted in a spate of product launches recently, which offers the users various options to choose.

While shopping for compliance products, you may come across many providers of software who will claim that they have the best compliance solutions. In such circumstances, it is difficult for you to decide whether you seek Enterprise Resource Programs, Best-of-Breed (BoB), or Business Performance Management (BPM). Availability of so many options may even compel you to stick to your existing interim compliance tool. However, you need to be patient and before making up mind on something ask yourself some basic questions such as – what compliance-related activities you wish to automate, what should be the extent of automation, what approach (preventive or audit) you must take to test and enforce various controls. Answers to these questions will help you to focus on the company’s compliance-related requirements, which will eventually enable you to avail of the right product.

Also, check if you can use various concepts of the compliance to improve the existing transaction rate by using the already existing business systems.

Do a Comparative Analysis: Many companies prefer to buy the first compliance product available to obtain an easy solution for carious compliance-related issues. This is wrong and can prove inefficient viewed from a long-term perspective. Before making any firm decision related to buying a compliance product, the management must assess the company’s current compliance status and according make a long-term planning.

Please note that a sustainable compliance environment comprises three components: compliance framework, risk-management framework, and system to monitor internal controls.

A compliance framework incorporates all the necessary processes that are required to ensure continued compliance over the long-term; control monitoring internally ensures strict adherence to the policies; and a risk-management framework carries out systemic evaluation of all the potential risks to the business at various levels.

Alexander Gordon is a writer for - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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