Yesterday the SEC announced their first Chief Compliance Officer, Kathleen Griffin. This newly created position is focused on internal employee compliance. This announcement had me thinking that even a regulatory body such as the SEC has internal employee compliance issues that need to be addressed. More and more companies are seeing the value of creating a compliance department within their company to ensure multiple aspects of future company growth. Some of the important aspects of compliance can include:
1. Data Security – Is the company and internal data vulnerable? Companies must ensure that any software applications that have been developed are secure. Good practice is to have a periodical and consistent review process of the operational security measures to ensure data is safe and secure.
2. Regulatory Climate – All companies must keep abreast of the regulations that affect their type of industry and business. If a company grows too fast without putting the proper compliance standards in place, there is then a reactive, time consuming process to fix mistakes within day-to-day company operations. It is best to take a proactive approach and become an expert in the regulatory changes that affect your industry.
3. Understanding the Human Element – All companies have an interest to protect their brand and confidential, proprietary information. If there is no clear employee conduct code, then there can be room for gray areas when it comes to conduct. With the growth of social media, it is imperative that the use of online mediums is monitored and policy is in place. Employees need to understand with social media comes responsibility, and the policies put in place are there to protect all participants and company integrity.
These are just a few examples of why taking compliance seriously needs to be a priority for any company wanting longevity in the marketplace.
