Regulatory requirements are increasing. In addition to gaining an overview of the laws that must be complied with, compliance work must also be streamlined. But the reality is that many organizations have not started to strengthen their compliance processes. But with thoughtful strategies and the right digital tools in place, it is possible to manage the increasing number of regulatory requirements effectively, says David Wahlbeck, CPO at Stratsys.
Implement a proactive compliance strategy
"As the compliance landscape undergoes constant change, a proactive approach is required. This is achieved by staying abreast of regulatory changes and continuously reviewing and adapting to new standards and regulations."
Professionals in areas such as risk and control and information security are currently busy with initiatives such as DORA and NIS2. In the area of sustainability, new reporting requirements are coming, especially in terms of sustainability reporting in the form of CSRD and ESRS, which are the regulations companies in the EU will report according to. SASB are industry-specific standards that are based on financial materiality and thus focus on financial risks. Global standards such as ISSB, which are largely based on SASB, are underway, which is expected to be major for companies outside the EU as well.
To be proactive and anticipate legislative changes and regulatory requirements, a dedicated function can be created to continuously monitor regulatory changes, trends and internal structures and processes. The function can also build relationships with industry organizations and regulators to gain insight into upcoming changes. Another way to gain valuable information is by attending relevant webinars and conferences.
Digitize compliance processes
More regulatory requirements mean more extensive data management. Manually managing a growing amount of data and reports can be very time consuming and result in human error. It also requires significant resources and can lead to important details being missed.
"Start by identifying the processes that are the most time-consuming and error-prone. Then implement targeted digital solutions that automate these processes. Choose platforms that can easily integrate with existing systems for a smooth transition."
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David Wahlbeck, CPO Stratsys
Creating cross-functional teams
In many organizations, for example, there is only one sustainability manager or information security manager, which also means that the overall responsibility and knowledge is more or less limited to one person. It is only when knowledge is spread throughout the organization that it has the greatest impact and best compliance is ensured.
The best results are achieved by engaging the right people within the organization and assigning responsibility and accountability.
Best results are achieved by engaging the right people within the organization and assigning responsibility and accountability. Ensuring compliance across all parts of the business can be challenging, especially in organizations where much of the work is done in silos. Address this by establishing cross-functional teams that include representatives from all relevant departments. Introducing regular meetings to discuss compliance issues and share best practices promotes a culture where compliance is seen as a shared responsibility.
"Strong collaboration between the organization's security team and the legal department is also crucial. Together, they can review incidents, public statements, policies and risks to ensure compliance."
Summary: the way forward includes collaboration, proactivity and digital innovations
Organizations that want to take a lead in addressing increased regulatory requirements should embrace proactivity, technology and collaboration to streamline their compliance processes. To make strategic decisions that take risk-related factors into account, the work is made easier with system support. With a seamless platform that brings together your business-critical processes, you can ensure effective compliance and promote sustainable growth.
In Stratsys platform, you avoid working in silos and can spread knowledge from the specialists to the rest of the organization in a coherent and structured way. You get a holistic view of the organization's business-critical processes. Our compliance platform brings together business management, GRC, sustainability, and systematic quality and work environment management in one place. It becomes easier to get an overview and allocate responsibilities. With a higher degree of automation and systematics, work becomes efficient throughout the organization.
