Having a culture of compliance means that every employee understands the rules and embraces their part in ensuring that they are followed. Having a strong compliance culture is key for running a successful compliance team.
In the session Kate and Steve discussed the risks of not having a good compliance culture as, it could harm the businesses reputation. There would be a high risk of losing good and valuable employees and It could lead to a regulatory breach which possibly may result in fines, striking off and imprisonment, in extreme cases.
A toxic compliance culture can lead to covering up mistakes, which can lead to further breaches and also a culture where ‘blaming the person, not the process’ is created. It lacks support and commitment from senior management. Where there is a toxic compliance culture, there will be problems that are not openly discussed and normally brushed under the carpet. Not much effort is put into resources for training as compliance, sometimes is not seen as a core part of the business.
So, what does healthy compliance look like and how to implement good practice within your firm?
This starts from the top, executives, management and business leaders can play an active role in establishing a healthy compliance culture. Employees are more likely to get on board if they understand that, when implemented correctly, compliance can become a competitive advantage. A business with a strong compliance culture has a general awareness of compliance best practices and the risks associated with non-compliance.
Rewarding compliant behaviour communicates that it is a management priority and motivates employees to follow compliance policies if there is something to be gained from it.
Prioritise the well-being of your employees, and make sure their needs are being met. Foster an atmosphere of respect at every level of your business. More importantly, make sure your business consistently follows its stated values.