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As the COVID-19 pandemic continues to evolve, in a world where trust is increasingly important, organisations that build credibility throughout their brand, products and services can improve their corporate resilience and relationships with customers, staff and stakeholders.
Most organisations are spending more on compliance than their entire budget on risk and assurance, to meet rules and regulations in areas including workforce, taxation, safety and consumer law.
When compliance is treated as an obligatory cost of doing business, organisations can end up implementing insufficient or ineffective compliance through:
Compliance failures - major incidents significantly impacting an organisation’s reputation or ability to do business.
Compliance burdens - manual, inefficient or otherwise less effective processes that negatively affect customer experience, costs and culture.
Whether across taxation or trade, energy or environment, cyber or safety, the cost of today’s compliance is often significant.
Many times, issues can arise as a result of compliance being treated as a cost, rather than an opportunity to instil trust in stakeholders, and improve competitive advantage and smart risk taking.
Informed through extensive experience with regulatory authorities and stakeholders, we have identified 5 Attributes of Highly Effective Approaches to Compliance.
It’s compliance, transformed.
PwC has extensive experience with regulatory authorities and issues impacting on specific industries, including government, financial services, health, and resources.
Compliance processes that are closely aligned to overall business goals are generally more effective in building trust. Here are three practical ways this can be done:
First, know the why. Making sure that staff understand both the “why” and “what” behind compliance processes has been shown to increase effective engagement and decrease internal breaches. Start by clearly linking compliance to strategic priorities and risk appetite.
The how is important. Staff and customers alike may look to see your organisation's values and how the company behaves under success and duress. Maintaining consistent behaviour starts with building the values of the organisation into all stages of the compliance process.
And the where?... compliance is everywhere. Most organisations manage varied compliance obligations across disparate departments and functions. Confirming each is aligned with overall strategy, purpose and values helps build consistent trust and a great customer and staff experience.
Trust is key to compete effectively and is strengthened through strong, reliable compliance. But how do you make the right choice regarding how to comply? Understanding how these choices affect customers, and their experience engaging with the organization, can help create a clear path toward driving increased trust and a differentiated customer experience.
Read more on what great customer experience design entails and hear what PwC's customers say on what drives great experience design.
Technology-powered compliance helps increase the bottom line by reducing both the cost of compliance processes and the likelihood of expensive compliance failures. High reliability and efficiency in compliance is more difficult to achieve today without having the technology and rich datasets available to drive these outcomes. From next generation governance, risk management and compliance (GRC) systems, to natural language recognition and advanced analytics, organisations are deploying a wide range of technologies to develop more efficient, automated and effective compliance.Discover how organisations are embracing 'disruptive' technologies to better engage with customers.
Compliance design, like many aspects of business, can often be positively influenced by leveraging a strong understanding of human behaviour. This can be applied to the process itself to reduce the risk of inadvertent non-compliance, as well as to align staff and organizational goals. Additionally, techniques like behavioural economics can help test and fine tune the effectiveness of processes.Learn more about human centered design and behavioural economics.
You may have heard the saying: hard earned trust can take years to develop but a single moment to lose. It follows naturally that preventing compliance failures is always more effective than detecting, investigating and correcting them.
One of the more common ways these failures occur is through organisations falling behind on emerging regulatory developments. While keeping pace with change can be a challenge for complex multinational organisations, leveraging insight and information from regulatory horizon-scanning tools and third-party databases can help you stay ahead.
The availability of data and technology across the organisation is making the prevention, real time detection and correction of compliance breaches increasingly realistic.
Through process animation tools and advanced analytics, for example, organizations can observe patterns of behaviour, pinpoint potential emerging challenges in processes and detect where the organisation is approaching compliance thresholds.
Together, these tech-enabled processes simplify staff’s compliance experience, and help protect them from possible breaches, leading to increased internal confidence, and a stronger company culture.
Partner, Assurance, PwC Australia
Tel: +61 418 431 296
Risk Consulting Lead, PwC Australia
Tel: +61 (2) 8266 4940
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