A CMS is an integrated system comprised of written documents, functions, processes, controls, and tools that help an organization comply with legal requirements and minimize harm to consumers due to violations of law. A CMS is woven into every functional area in your organization, from sales to advertising to operations and administration. A CMS helps manage risks associated with:
Changing product and service offerings
New legislation enacted to address developments in the marketplace
Noncompliance with consumer protection laws may result in: Litigation, monetary penalties, and other formal enforcement actions
Establishes oversight for your compliance responsibilities.
Develops the execution plan for rolling out monitoring and communicating the program.
Ensures that feedback gets efficiently tracked and acted upon Reviews the operations to ensure responsibilities are carried out and legal requirements are met
A good Compliance Management System can proactively address the risks relevant to your organization while meeting multiple regulatory requirements. It can shine a light on problems that may be a symptom of deeper issues within your organization. Properly administered, it can fix those issues before they blow up into something costlier.Meanwhile, management will be better prepared when regulators come knocking on the door, allowing them to minimize the typical “fire drills†that distract your organization from its core business. Finally, and most critically, a CMS prevents harm to consumers by minimizing violations of the law and helping the workforce meet its compliance obligations. It can help organizations establish an effective and efficient organization-wide compliance management system. The standard helps the organization understand and adhere to the ever-increasing number of regulatory requirements while acknowledging the fundamental market drives. This alignment of strategic initiatives, objectives and compliance management system helps the organization unleash its full potential, establishing responsibility and accountability within the organization, increasing its effectiveness and reducing costs. However, compliance management is more than just compliance to laws and regulations. Organizations are required to deal with varying requirements from a number of stakeholders (e.g. customers, community, etc.), industry codes, organizational standards and benchmarks voluntarily chosen by the organization, and last but not least, their own organizational policies and codes. In consequence, ethical codes of conduct are taken seriously as a sign of a healthy corporate governance and socially responsible organization. The standard acknowledges this fact and is written in such a way that helps the organization consider all of their compliance requirements, compliance commitments and compliance obligations in order to be successful in the long term.
User questions & answers