From the Blog

Using a compliance management system: identifying and mitigating risks

Customers using your product or services expect your business to operate within regulatory requirements and to meet community standards. In practice this expectation requires businesses to have oversight of management, staff and processes along with security control measures for key data, including customer information. A compliance management system helps you meet regulatory requirements and manage the dangers associated with staff conduct.

What is compliance management?

Compliance management is the process of operating safely with the regulatory framework of your organisation and industry, to avoid the threat of fines and/or reputational damage.

Compliance is a subset of enterprise risk management and forms part of GRC (governance, risk management and compliance). It includes the subsets of conduct risk and OHS (occupational health and safety) compliance.

Strong compliance management ensures your organisation meets critical legal and stakeholder standards, helping to avoid financial loss and limit damage to your organisation’s community standing.

What are the 5 key elements of compliance management?

There are 5 key elements to compliance management:

  1. Setting the legal and regulatory expectations and defining the behaviours that employees need to demonstrate
  2. Promoting a positive culture that values integrity and business ethics
  3. Developing internal processes and controls to manage compliance issues – including monitoring risks to understand where there are capability gaps and prevent breaches
  4. Embedding coaching, training and development programs that coach for specific behaviours, including for remediation
  5. Using reporting systems that provide transparency and meet audit requirements.

What is a compliance management system?

A compliance management system (or CMS) is an integrated and automated system that incorporates organisational processes, procedures and tasks that make it easier to meet regulatory standards.

A CMS project is usually implemented by senior management under an established risk management framework and should be integrated across a range of staff functions.

Why do you need a compliance management system?

There is a strong appetite for businesses and government departments to meet community and legal expectations. This calls for businesses to improve visibility over staff functions, organisational processes and customer conversations, develop audit trails, and provide coaching for appropriate behaviours.

Benefits of a compliance management system include:

  • Catching breaches before they happen
  • Identifying trends to develop appropriate training and coaching
  • Supporting remediation to prevent future problems
  • Making reporting easier to stakeholders within the organisation and regulators.

“We had a major breach that required ongoing coaching and disciplinary action as well as remediation with our customers. We were able to show the regulator the workflow of how we recognised the breach along with all the coaching and development activity completed to close the gap. Without YakTrak we would never have been able to show them how we closed the risk.”

 – Energy Client

Find out how YakTrak can support your compliance management program

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How you can identify and manage risks with YakTrak

YakTrak tracks the goals you want to see, creating a practical way to measure and monitor key conduct, remediate where necessary and reward good behaviour.

Our advisory team works closely with enterprise business management teams to ensure we are providing the services and the data needed to report on conduct and performance daily, in real time, all the way to senior management and the board of directors.

  • Dashboards provide real time reporting
  • Audit workflows ensure records are kept for regulators and HR teams
  • Identification of key risks enable targeted coaching and development
  • Remediation is supported through YakTrak’s coaching software.

“If the regulators came to us and said ‘show us your coaching evidence’ we’d be able to pull it out of YakTrak. YakTrak helps us build risk awareness.”

 – Banking Client

Let’s look at how YakTrak can manage a risk:

  1. Management defines the risks it wants to avoid and the behaviours it wants to see and builds them into an observation workflow in YakTrak.
  2. An observer from quality assurance listens to a staff member interaction with a customer and enters the details of outcomes into YakTrak. YakTrak springs to life behind the scenes and gets to work.
  3. The observer enters details indicating a breach.
  4. A digital form is sent to multiple users within YakTrak for further action:
    • the employee’s leader – advising of the breach and coaching requirements. The leader can then coach the employee and track the outcome in the YakTrak workflow.
    • the customer remediation team – who then contact the customer with the correct information, and documents the outcome in YakTrak.
    • the governance team – who will then document the contact to the regulator if required.
  1. The quality assurance team keeps track of all interactions using their very own status dashboard providing an overview and real-time status update of all ‘open’ risks identified.

YakTrak has helped many organisations in highly regulated industries such as health, energy, and finance track and report on compliance-based activity including remediation actions undertaken to fix the breach.

Ensure your workforce is clear about what they need to do and give them the resources to succeed with YakTrak. Get in touch with us today.


Photo Josh Sorenson via Pexels

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