Asociacion Profesionistas de Compliance - Initiatives to Reduce the Cost of Compliance.pdf
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Asociacion Profesionistas de Compliance - Initiatives to Reduce the Cost of Compliance.pdf
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Prof. Hernan Huwyler's slideshare discusses in detail five key actions that organizations can take to reduce compliance costs. These actions are designed to help organizations increase their compliance efficiency, reduce compliance risks, and lower compliance costs. The first action proposed by Prof. Hernan Huwyler is to designate local managers as compliance representatives in business units. This helps to amplify control while reducing the compliance function's structure. By designating local managers as compliance representatives, organizations can have a more effective compliance structure with fewer resources. Local managers can act as compliance ambassadors and help ensure that the organization's compliance policies and procedures are followed in their business units. The second action proposed is to quantify compliance risks and price potential claims, compensations, fraud, and revenue losses due to noncompliance. By quantifying compliance risks, organizations can better understand the potential costs of non-compliance and allocate resources accordingly. This can also help organizations prioritize their compliance efforts and ensure that they are focusing on the most significant compliance risks. The third action is to assign the testing of compliance controls to process owners and outsourcing service providers. This helps to distribute the responsibility for compliance testing and can reduce the workload of the compliance function. By assigning compliance testing to process owners, organizations can ensure that compliance controls are tested regularly, and issues are identified and addressed promptly. The fourth action proposed is to embed efficient controls in clearly articulated procedures. By embedding controls in procedures, organizations can ensure that compliance requirements are met consistently and effectively. Efficient controls can help organizations streamline compliance processes and reduce compliance costs. Finally, the fifth action is to add requirements for compliance skills when recruiting legal and financial managers in business units. This helps to ensure that compliance is a consideration when recruiting new managers. By ensuring that managers have the necessary compliance skills, organizations can better integrate compliance into their business operations and reduce the risk of non-compliance. In addition to these five actions, the slideshare also suggests other recommendations, such as delegating compliance consultations, audits, and due diligence, benchmarking the scope of risk assessments, and implementing policies to simplify wording and articulation of procedures. Additionally, the slideshare recommends coordinating actions with business units to assess, implement, measure, and reward cost reduction initiatives. By following these recommendations, organizations can reduce their compliance costs while maintaining effective compliance programs.
Asociacion Profesionistas de Compliance - Initiatives to Reduce the Cost of Compliance.pdf
- Prof. Hernan Huwyler, MBA CPA IE Law School Excecutive Education Compliance & Risk Master Director 5 actions to reduce compliance costs
- This session … doing more with less
- Inflation, recession and increased penalties made necessary to amplify the control, scope and support of the compliance function while reducing its structure Compliance costs were significantly rising
- Compliance ambassadors Designate local managers as compliance representatives in business units What Amplify the control audits and training Reduce headcount and travel costs at group level Results Add requirements for compliance skills for recruiting legal and financial managers in business units Transfer in-person training Delegate compliance consultations, audits, due diligence and implementations of local regulations Delegate the approvals and the facilitation of risk assessments for local contracts, laws, regulations and fraud Measure that the program is actually reducing compliance costs How Increase insight from business units Decentralize
- Quantify compliance risks Price potential claims, compensations, fraud and revenue losses due to noncompliance What Adjust the compliance controls to mission-critical processes, clients and contracts Avoid overvaulting risks with superficial assessments Results Model compliance risks when planning for new products, contracts, prices, third-party agreements Measure the cost of non-compliance in fraud losses, disputes, penalties, claims, compensations, liabilities, credits and complains Assess the coverage of insurance policies for liabilities Benchmark the scope of the risk assessments against the compliance register of obligations How Renegotiate liability insurance
- Self-control testing Assign the testing of compliance controls to process owners and outsourcing service providers What Sell compliance-as-a- Service in business proposals Results Create a checklist to test compliance controls with a fixed selection criteria and detailed evidence requests Add the review of the supervisor of the performer of the tests Do a control re-performance testing for few activities from the compliance function Create a link transaction accesses to ERP & CRM with manual delegations to automatically prevent incompatibilities Exclude low value transactions How Reduce the costs of testing compliance controls for SOX, ISO and other certifications Increase the accountability of process owners and third- parties
- Smart controls and procedures Embed efficient controls in clearly articulated procedures What Reduce transaction costs by removing unneeded and Increase accountabilities Results Implement a policy management policy with a central repository for normative documents Shorter approval chains with a RACI approach Simplify the wording and articulation of procedures Prevent input data errors with automatic validations Create automatic flows for approvals, delegations and control tests Increase escalation thresholds How Reduce fraud losses
- Cost reduction plans as compliance obligations Transformations and efficiency plans are voluntary commitments to cover by compliance Coordinate actions with the business units to assess, implement, measure and reward cost reduction initiatives Reduce number of entities Replace licensed software supporting compliance by free open-source flow managers (e.g. Apache Airflow for due diligence and audits, R for risk assessments, Camunda for APIs) Insource consultancy and external advisor costs Reduce staff cost and travel by remote audits and document collection and reports via robotics Depurate databases Typical cost cutting plans in compliance
- /hewyler /hernanwyler Prof. Hernan Huwyler, MBA CPA Compliance, Risks, Cyber Security, Audit