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How to Implement a Compliance Management System

Find Six tips to help you implement a compliance management system

A compliance management system helps make sure that your company adheres to the sets of rules and regulations that it has set forth for itself. To make sure that the process of implementing those rules on a daily basis is effective, a compliance officer is the best solution for doing so. 

Depending on the organisation, there are resources that it has to make sure are well kept and monitored. Company management and resource managers may experience issues if they lose track of company asset audits. 

Implementing a compliance management system helps make sure that employees know the importance of certain ethical conduct, especially from experience and past reports. In the case of the British Museum for example, making sure that certain artifacts do not go missing is an important part of the core ideology that one would expect to be carried out thoroughly. Yet after a recent investigation, the head of the British Museum, Hartwig Fischer, had to resign after more than 2000 artifacts and jewelry, including old gem stones, were found to be missing, stolen or damaged. 

Compliance management system - intelligence & risk solutions

A compliance management system would have helped emphasise the importance of protecting and documenting all items, which would enable authorities to correctly identify the offenders and be able to evaluate the loss, which in Hartwig’s case, was not possible as the stolen and missing items were not properly documented. 

Let’s look at 6 steps to implement a compliance management system that would have helped Hartwig avoid this blunder:

  1. By appointing the right team, including legal and compliance officers, Hartwig would have made sure that his workers were well aware of industry standards and stuck to them. An anonymous reporting app like Aranea, would also help workers question activities they might see as unethical and report them. 
  2. Regular training for the staff is necessary to ensure that they are always aware of upholding the company’s values and industry regulations. The training should take into account both the company’s culture and external laws. 
  3. Depending on the organisation, a compliance management system can be flexible or have a top down authoritarian approach. In the case of Hartwig, he should have taken the lead in constantly updating the internal laws of the museum to make sure that he was not compromising a national institution’s reputation and resources.
  4. Implement the compliance management system with the help of technology. Aranea, an anonymous reporting system, has responders around the clock to help make sure that all reports are recorded and a channel of communication is available. If workers have an open channel to help them discuss any issues, it is easier to identify mistakes or misconduct and hold those responsible accountable. 
  5. Employees are more likely to adhere to rules when clear reward and punishment systems are in place. Hartwig received a warning about his flaws in 2021, and while it is clear that he was not directly involved in the illegal behavior, he bears responsibility for failing to address it and make it known that it was a serious issue sooner. By showing employees the consequences of certain actions, Hartwig could have avoided the scale of this situation and more easily identified the perpetuators. 
  6. Constantly updating the system is the last step in how to implement a compliance management system effectively. With new rules and regulations being pushed forward all the time, having an app like Aranea can make it easier to alert employees while at the same time documenting the said laws for them to view at any time.

Even though the procedures for putting in place a compliance management system are straightforward, getting guidance from legal and compliance officers is beneficial. We have a team of legal advisors here at Aranea who can help you tailor regulations according to your  particular industry and continually keep you informed of the most recent updates.

Aranea is also anonymous, meaning there is a higher chance employees will come forward. This allows them to stay protected while they collect and provide necessary information and data to support your claims. Aranea also makes sure that the information you provide is well documented and safe in order to allow you to properly present your case.