5 Prerequisites of a Compliance Program

5 Prerequisites of a Compliance Program

Organizations implement compliance programs to ensure that they adhere to the guidelines specified by various regulatory bodies. Irrespective of the industry and compliance requirements, there are certain basic prerequisites that are common to any compliance program which I have tried to list here.

    • Objectives for the Program: Any training must have an objective behind it, compliance training is no different. So to start with, figure out the objectives. Once it is clear as to which particular issue it addresses, it becomes easy to move to the next step i.e. forming a compliance committee.


    • Compliance Committee: Who are the people to take care of these compliance related issues? There must be a compliance committee headed by a compliance officer to take the responsibility of conducting the compliance program. The job of a compliance officer is to develop, operate and monitor a compliance program.


    • Training Plan: After compliance committee is fixed, headed by a compliance officer, the next step is to devise ways to develop and implement successful and effective training programs for employees. Materials or content should include both compliance policies and procedures. The compliance policies and procedures should follow as it is mentioned in the compliance manual.


    • Smooth Communication: Developing a compliance program becomes successful only when a smooth communication channel is followed between compliance committee members and employees throughout the program.


  • Evaluation: There must be an evaluation process to devise ways to monitor the progress of employees and how far the organization is benefiting from the program. Organizations can assign personnel as well as internal auditors to monitor whether is there any fraud going on or if any employee not abiding by the compliance rules. If such incidents are detected in the organization, then strict disciplinary actions need to be taken and possible investigation need to be carried out to see what the source of non-compliance is.

These constitute some of the basic requisites of compliance training and to make it effective, an organization should try to follow them as mentioned above.