A company's existence is strongly tied in its ability to generate money. Departments within the company are working cylinders, all contributing in some way or another to maximizing profits. That's not the case when it comes to compliance though.
Seen as a tickbox exercise and a cost-incurring process with no immediate effects on profitability, compliance has never been the favourite department within companies and it is often treated as a necessity rather than a valuable process.
It's about time you start thinking strategically. By making a few tweaks in the way you perceive and apply your process, you can turn compliance into a huge asset for the company.
First and foremost we will look at the indirect ways compliance can make you money. Panama Papers, the FIFA scandal and Barclays £72 million fine from the FCA for poor handling of financial crime risks are just some of the most recent scandals to send shockwaves in the business world . The fines, bans and prison time directly associated with these scandals are eye-catching and tangible evidence of the financial strain companies had to undergo but nothing compares to the reputational damage. The moment your company makes the front pages for all the wrong reasons, your name and credibility are damaged in ways that no amount of money can fix. What's the learning from this? That compliance might not show its contributions to the company's profit and loss account at the end of each year but it makes sure that those financial statements exist in the first place. The right compliance process makes sure you avoid fines and preserves the name, reputation and status of the company.
Now let's look at the more direct ways in which the right compliance process can affect revenue. Due diligence is more often than not performed on third parties such as customers, suppliers and partners. Having the ability to perform fast, effective and in-depth background investigations on these entities is what can potentially be the game-changer. The amount of information you acquire through a robust compliance process can be used and leveraged by other departments within the company. Employing the right tools and owning the appropriate technology can transform your due diligence investigations to the most detailed market research you could ever hope for. But it's not just that. Cross-departmental collaboration is another way to make compliance an active part of the revenue-making process. M&A and business development departments can take advantage of the knowledge and know-how of the compliance specialists regarding regulations and challenges that come with different territories.
For more information and advice on how to take your compliance process to the next level, let's have a quick chat.