Compliance Software Buyers Guide
Last updated: April 11, 2021
Compliance management software is used by organizations to comply with legal, industry, security and other regulations. Every organization needs to follow and abide by many regulations and rules. Compliance management software helps you collect all compliance knowledge under one roof and regulate and maintain the necessary compliances. You can manage compliance risk by governing and tracking your global and domestic regulatory requirements in real-time. Features such as customized calendar and compliance libraries facilitate compliance actions for each legal body and ensure they are automatically updated as regulations change.
Features of Compliance Software
This feature allows you to detect deceitful activity in vendor payments, financial statements, etc. Employees can use web forms and whistleblower hotlines to alert management about fraud.
Enables you to track potential conflicts of interest such as employee trading, employee gifts, etc.
E-learning for compliance training
Customizable and generic online courses to train employees on compliance activities.
Change management and regulatory intelligence
Tracks XML and RSS feeds of regulatory information and alerts put out by government organizations and standards bodies. You can map the feeds to existing policies. Some vendors employ legal teams that build knowledge bases of global regulations.
Includes reporting and case management features and systematic workflows to investigate and resolve compliance issues. Some platforms support field reporting in real-time for audits.
Offers scheduled reports and dashboards to help you get visibility on noncompliance and violations at various levels. Top apps support continuous tracking of KPIs linked to important business processes for compliance problems.
The workflow engine allows departments to attest to compliance with regulations and policies. Controls are recorded in a centralized catalog and standardized workflows facilitate a process for controlled incident escalation.
Compliance registry and policy management
Version control, approval workflows, policy authoring, etc. Policies are recorded in a central registry that maps relevant regulations.
Types of Compliance Software
There are three main types of compliance management software:
1. All-purpose platforms
These provide generic features for compliance management across sectors. Sample vendors include Navex and CMO Compliance.
2. Industry-specific applications
These help companies in heavily regulated sectors such as financial services, industrial manufacturing, health care, etc. meet specific commercial and legislative requirements.
3. GRC (governance, risk management, and compliance) platforms
These offer generic compliance management tools as well as a wider set of features such as legal management, business continuity planning, and IT risk management for corporate governance and risk management.
Benefits of Compliance Software
Helps Maintain Business Process Workflow to Minimize Risk
Compliance Management software comes with a variety of features with amazing benefits, the most important of them being its ability to integrate a variety of business processes. It serves as a central repository where business-critical information is saved and can be shared amongst stakeholders. By allowing selective and restricted access to employees, it ensures members of the organization receive only the intended information that they are authenticated for. Proper dissemination of information eliminates silos and makes for a well-connected work environment. It is extremely beneficial in companies with a complex multi-department system.
Ensures Security of the System via Authentication
In CMS, employees are authenticated before they gain access to the organization’s portal. This means vital information never ends up in the wrong hands. Authentication is an important security feature of the Compliance Management software and one of its major benefits.
Helps Assess Risks in Multiple Areas
A CMS helps in assessing risks in all Governance Risk and Compliance (GRC) functional areas. The major areas covered by CMS are:
● Internal audit
● Risk registers
● Quality management
● Finance and operations
● Regulatory compliance and reputation
By assessing risks for all the aforementioned fields and disciplines in the GRC, it provides valuable inputs that can be used to eliminate liquidity and market risks.
Helps Map Requirements with Activities
By employing a CMS, every audit and corrective action can be mapped to the requirements that drive the activity. As requirements change, the management process also changes accordingly. This mechanism helps drive the management process forward. This is visible across the organization. Notifications can be assigned on the Compliance Calendar for the responsible staff for activities completion.
Peace of mind
Your company management can enjoy peace of mind after meeting all compliance requirements.
The software provides alerts about impending deadlines for compliance thereby helping you avoid penalties.
Your company can showcase good compliance and attract investors, employees, and customers enabling your business to grow and prosper.
Avoid repeating the Tasks
A quality compliance solution can help to prevent errors before they happen or detect them at an early stage, thereby minimizing the need to repeat tasks.
The software can embed compliance in the DNA of your business operations which improves efficiency in all departments.
Your company can enhance brand loyalty and trust by implementing an effective and well-communicated compliance program. This will tell your stakeholders that your company regards compliance as a top priority and is committed to meeting the highest ethical standards. Plus, it demonstrates your knowledge and expertise on all pertinent regulations and laws. This will increase the trust of vendors, employees, and customers in your company and boost brand loyalty.
Organizations in almost all sectors and industries need to meet various compliance requirements. Therefore, compliance management software is essential for small, medium-sized, and large enterprises in any sector or industry.