CURRENT VIEWS ON COMPLIANCE & GOVERNANCE
Larger, highly regulated and complex businesses started discovering in late 2003 and early 2004 that they need to make significant improvements in business performance to meet increasing levels of corporate governance which have arisen through such areas as Sarbanes Oxley, CLERP 9, CoBIT. Many organisations are now facing increasing scrutiny to ensure they meet their ISO accreditation requirements. There is a cascading effect into the medium and small business sector areas as well, that are facing increasing levels of regulation and compliance.
The requirement to demonstrate "compliance through corporate governance" has evolved after the collapse of many large corporations (Enron, Worldcom, Parmalat, HIH, FAI and many others) through lack of accountability and transparency in reporting and management systems. The fundamental requirement arises through shareholder dissatisfaction and government dismay and dissatisfaction over corporate collapses that leave many unemployed and large debts owing to creditors and other parties.
In analysing the "fallout" from these collapses, a common "catch cry" emerges through the press commenting on the investigating report that invariably identifies (amongst other things) that an organisation had inherent weaknesses in its "internal processes and procedures".
GOOD DOCUMENTATION IS FUNDAMENTAL
Further analysis illustrates that some of the fundamental issues that have resulted in "failed business performance" emanate from "out-of-date" or "poorly written" internal policies and procedures, which are used to run and operate the business entity.
Previously the documentation to "run the business" i.e. it's Policies and Procedures was held under the name of the "Quality Management System". We like to call this the Business Management System, as the repository of all the policies, procedures and forms needed to operate the business effectively.
KEEPING UP WITH CHANGES
Many organisations are struggling to maintain their ISO accreditation due to the rapid changes occurring in their own industry sector area. Not to be underestimated are the large numbers of external regulation changes that are occurring and published daily through government (federal, state and local) and industry body regulators.
In 2004, to manage the myriads of changes to the documentation, and the documentation itself, contained within the business management system, businesses are discovering that that they need a purpose built solution with unrivalled flexibility, which can deliver up-to-date documentation in a controlled format. They also need "procedural" documentation that s easy to read, and can be operated without interpretation.
This is a MUST if the organisation is required to demonstrate that they are compliant.
WHO IS AFFECTED BY COMPLIANCE?
It doesn't matter what industry sector you are in the issues of compliance and corporate governance will affect the way you do business and demonstrating that you are compliant through your Business Management System will reduce your risk in a number of areas.
Compliance and Governance affects;
MANAGING DOCUMENTATION is of the key elements to reducing risk!
Check out what a FINISHED document looks like.
This was created from 4TQFlow!
Axion's 4TQToolKit is a complete Business Management System, originally created as a purpose built solution with unrivalled flexibility, which can deliver up-to-date documentation in a controlled format that is easy to read, can be operated without interpretation and readily deployed to all sites.
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