Speaker 1: Welcome to the presentation on Effective Compliance Training Program – Ways to Reduce Compliance Risks. A compliance training program is important for all employees at all levels in an organization. The target audience can be fixed depending on the nature of compliance issues that need to be addressed. If it pertains to health and safety matters, all employees can be included in the compliance training program. However, if training is related to subject matters such as taxation policies or financial regulations, then perhaps the training program can be limited to employees working under finance section. The main objective of compliance training is to ensure that organizations abide by the norms set by regulatory bodies and thus avoid situations where its employees default or do not follow stipulated rules and regulations as laid out by the organization or any external regulatory body.

Speaker 2: So what do you mean by compliance risk?

Speaker 1: Compliance risk can be defined as the risk that is associated with the violation of certain standard rules or procedures. Compliance risk creeps in where there is a deviation from the original standards as mentioned by a regulatory body or authority. A breach of compliance can have long-lasting effects. Organizations' image can be jeopardized, especially in the eyes of customers and stakeholders. Organizations susceptible to compliance risk could face problems such as reduced business opportunities or limited turnover. It is a good practice for organizations to assess compliance risk. Organizations need to monitor closely for any violations of standard procedures. Identifying the procedures or practices prone to violations can help in identifying risk areas. The steps that are usually followed while assessing a compliance risk are Risk identification is the first step to assess any compliance risk. The potential threats that may arise are identified at this stage. Once the risks are identified, you need to measure the degree of risks. The risks are quantified and ranked as per their gravity. Risk prioritization helps you to prioritize decision-making with respect to various risks. Some compliance risks are serious in nature and need immediate attention, while others can afford to be attended to at a later date. The last step of compliance risk assessment and control. It is important for organizations to ensure that they comply with any changes made by the governing body or those that arise due to changes in the operating environment. An effective compliance program requires formal compliance risk assessment and continuous evaluation. A compliance program is not just a mandatory requirement, but an essential prerequisite for the sound health of any organization. An enterprise-wide compliance program helps to bring all employees the same platform with respect to compliance issues. It helps employees to understand how risks at one part of the business line might affect other parts of the business or the organization as a whole. Here are some tips for designing a successful compliance training program. 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. For any compliance program to be effective, it should abide by a standard procedure and policy. It could be laid by an external regulatory body or internal rulebook. After a compliance committee is fixed, headed by a compliance officer, you need to devise ways in order to develop and implement a successful and effective training programs for employees. Compliance program becomes successful only when there is an effective communication between compliance committee members and employees. There must be an evaluation process to monitor the progress of employees and extent to which organizations are benefiting from the program. If any incidents are detected in the organization that violate the compliance norms, the cause for such violation needs to be investigated and disciplinary action needs to be taken to ensure that such violations are not repeated. To ensure that organizations adhere to regulatory requirements and avoid being penalized with fines or other losses, they need to invest in compliance training programs. To read more such articles, please visit blog.comlabindia.com.

Speaker 2: Thank you.