BSBCOM603 Task Assessment 1

BSBCOM603

Assessment task 1

Compliance or acting according to a set of rules is a fact of doing business whether you are a business owner, executive, HR manager or sales representative. Navigating the path to compliance requires proactive planning and organization but doesn’t have to be overwhelming.

Report

1. Compliance Requirements:

Internal Compliance

Human resources  

Human resources covers a vast amount of important issues and requires a compliance deep dive. Failure to comply with even a single human resource policy can land your company in a legal mess. Review your human resources policies and procedures at least once per year to assure they are in compliance. Keep up with changing Affordable Care Act (ACA) provisions and if your company is growing, find out at what number of employees your compliance requirements change. Stay current on what constitutes a workplace and telecommuting, marriage equality and benefits, and preventing harassment and discrimination in the workplace.   

   

Workplace Safety  

The Occupational Safety and Health Administration (OSHA) is a national public health agency committed to protecting workers from hazards at work. This means your office, retail or manufacturing space must meet all applicable local and federal guidelines for safety. Conduct regular safety checks, fire drills and inspections by the appropriate governing agencies. In addition, train employees to meet any operational guidelines or your workplace will not be compliant.   

   

Financial Services  

Financial services regulations should be at the top of your “compliance” list. Failing to pay your withholding, workers comp or quarterly income tax is the fastest way to land on the radar of the I.R.S. and other governmental taxing authorities. Unlike private corporations to whom you owe money, the government can shut down your company.   

   

External Compliance

The objectives of external compliance are to:

provide assurance that the organisation is complying with all material external requirements.

provide a framework to assist in achieving that compliance.

 

External compliance may be achieved using a range of approaches. At the more basic level, periodic manual sign off by management of compliance with external requirements is used. More comprehensive approaches involve regular compliance attestations by a wide group of management andstaff together with inclusion of non-compliance risk into the ongoing risk and control self assessment process.

Industry compliance requirements

More and more companies are seeing increased value in investing in strong compliance programmes because these programmes not only prevent infringements, but may also serve to mitigate fines if an infringement has been committed. A tailored compliance programme, targeting the business’ risk areas, is important in helping companies navigate the pitfalls without imposing unnecessary restrictions.

Of course, embedding these compliance policies into a company’s culture requires further, practical measures. Having compliance policies but not enforcing them may be almost as harmful as not having them at all. The most effective way of ensuring compliance is to train employees in the basics and how they apply to the business. Regular health checks and clear procedures for reporting concerns are also critical to promoting effective compliance.

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of ensuring compliance is to train employees in the basics and how they apply to the business. Regular health checks and clear procedures for reporting concerns are also critical to promoting effective compliance.

Questions each company should ask itself

What are the main areas of risk for your business?

Does your company have a compliance policy in place?

Are all areas of risk covered by it?

To whom does the compliance policy apply?

Is the compliance policy part of your company culture?

Has it both been endorsed by senior management and adopted by your employees working in the field?

Is the compliance policy legally enforceable?

How do you monitor compliance?

Does your company have reporting procedures for potential breaches?

Is everything in place in order to take swift disciplinary action for breaches of the compliance policy?

Does your company know how to enforce the compliance policy in its dealings with business partners?

2. Compliance Effects:

Areas affect

Some of the key challenges that buy-side and sell-side firms currently face and must consider when developing their risk infrastructure include:

Inventorying risk controls

Migrating risk controls to the front-end

Deploying more real-time risk controls

Identifying both risk gaps and risk control inadequacies

Creating risk controls able to address high-frequency data collection and analysis

Testing and validating front, middle, and back-end controls

2. Risks

legal, such as insurance issues, resolving disputes, contractual breaches, non-compliance with regulations, and liabilities

global events, such as pandemics and interruptions to air traffic

technology, such as computer network failures and problems associated with using outdated equipment

regulatory and government policy changes, such as water restrictions, quarantine restrictions, carbon emission restrictions and tax

environmental, such as climate change, chemical spills and pollution

work health and safety, such as accidents caused by materials, equipment, or location of your work

property and equipment, such as damage from natural disasters, burst water pipes, robbery and vandalism

security, such as theft, fraud, loss of intellectual property, terrorism, extortion and online security and fraud

economic and financial, such as global financial events, interest rate increases, cash flow shortages, customers not paying, rapid growth and rising costs

staffing, such as industrial relations issues, human error, conflict management and difficulty filling vacancies

suppliers, such as issues within their business or industry resulting in failure or interruptions to the supply chain of products or raw materials

market, such as changes in consumer preference and increased competition

utilities…

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