Compliance Requirements
The present study has been undertaken for the public Institution and not for profit Institution for providing the charity and essential services to the community. These Institutions are established with a certain mission and vision and provide charitable services to the community. A Few times, the Institution may not have the enough resources to provide for the health care services. The private Institution has encountered with a number of inconsistencies in the past and an evaluation has been made. The consumer perspective is of great importance and not for profit Institution must have strong compliance system.
- Internal Compliance Requirements, including information management and recordkeeping requirements-
The monitoring of internal compliance with relevant regulations and rules is one of the major concerns in practice. The organization will have the information management and recordkeeping requirements. The approaches must be streamlined with the compliance requirement functionalities
- External Compliance Requirements-
External compliance systems are sanctioned through the state in which the business is conducted. The Report plan for the External compliance system is enumerated below-
Report plan
- Annual Statement- The state governance requires companies to submit the Annual statements ad a fee is also generally submitted with the report.
- Tax-Few Companies are operated in which they require to pay the tax. This is referred to as Franchisee Tax.
- The Labor standards Act-All the corporations are needed to comply with the regulations of Labor Standards Act.
- Industry Compliance Requirements-The systematic comparison of present and existing approaches for monitoring the business processes, a company must adhere with the Industry compliance requirements.
- Areas affected-The effective compliance monitoring system identifies the areas in a corporate structure that are affected-Financial department (non-submission of auditing reports, unclear dues, irregularities in payments), Production department (over-capacity production), IT Department (Problems experienced in configuration or installation of systems)
- Risk-The risk in a corporate structure may arise due to external or internal environment variables. The internal variables can be attributed to wage discrimination, ineffective controlling systems, production controls and others. The external variables can be attributed to changes in monetary or fiscal policy, economic recession and the high cost of workers.
- Penalties-The state government may require the LLC and corporate bodies to pay a fine up to 300 dollars depending on the operations of business and non-compliance with the statutory guidelines.
- Risk Minimization-The Risk minimization is possible through the recognition of need of implementing the compliance monitoring systems at an enterprise level. The proper measures to be undertaken and priority risk areas identified.
- Implementation of Risk Management system- The prioritization of risks, assessment and evaluation of different enterprise levels is necessitated with adequate amount of resources and maximization of opportunities.
- Comparison of systems with relevance to-
- Cost-The Implementation of Risk management system with relevance to cost can be identified with the implementation of ISO 31000 in the organization. When the company undergoes through ineffective collaboration, the risk factors are identified.
- Effectiveness-The term effectiveness of a risk management system is relevant to brand and corporate image. The risk management system allows the immediate benefits from the variables that causes risk.
- Efficiency- Efficiency is a term that is conjunction with employee output and productivity. The effective placement of the compliance monitoring system and risk management systems can lead to enhanced output.
- Feasibility-The feasibility study is undertaken to assess the strengths and weakness of a given project. In an enterprise, the research methodology adopted for implementation of the compliance monitoring system is-
- Defining the selected criteria
- Systematic review and case study analysis
- Designing of Risk management and compliance monitoring framework
- Classification of present approaches
- Comparison and application of compliance system in different areas.
- Match to Organizational Culture-The monitoring of business processes is essential to match with the external variables or organizational culture. Compliance rules must be extracted from the public data sets.
- Recommend system or Components-A systematic assessment on compliance system or components is relevant to the context of business functionalities existing within a system. COSO, COBIT5 and compliance monitoring system are a few of them.
- Survey Tools-The feasibility of a project can be determined through survey tools. A survey tool is a comprehensive study that analyzes the different demographic, technological and environmental factors. This includes- Questionnaires.
A Summary of Charity Care Case Study
Health services in any community must be studied to address the institution behavior related with compliance system. The not for profit Institution require corporate finance through which they can provide charity care. The private Institution need to implement the compliance management system management of risks is possible (McGuire, 2006).
Consumer Protection Laws
A compliance system must be established with consumer protection laws and formal enactment of action is must. An effective compliance management system in non-for profit Institution and private Institutions must comprise of three essential elements-compliance audit, compliance management and management oversight. An unequivocal compliance system must be established within the system with a clear vision statement. The institution needs to appoint the compliance system officer with accountability. Conducting periodic audits is necessary and assessment of recurrent reports through compliance officer is another concern for the institutions.
The profile of the charitable institution is of great significance as management committee needs to devise the compliance program. Development of compliant procedures and policies is another major concern for the not for profit and private institutions. The employees working for charity care must receive proper training. The compliance officer is required to review procedures and review policies with applicable consumer laws. The audit or review must be undertaken with corrective action. The not for profit or private institutions need to implement the robust information systems. Compliance management software is configurable and interactive solutions that provides better policies with a platform to meet with the needs of the consumer. The effective management of documents, audits, employee training and customer complaints and form based guidelines are effectively managed through Compliance systems (N. Davilas, 2014).
The industries have a wide number of challenges and offering real time solutions to clients is not possible without the compliance system approach. Today, the market launched integrated compliance system software that is easy to use and offers connected approach to compliance system. Document control, audit and training control are some of the major areas that are included within the compliance management software. The innovative compliance systems manage the organizational problems. The research and discovery are undertaken in the different stages of a product. Cost-effective compliance management systems make the given institution approval process easier. A quality standard is one of the biggest concerns for the institutions and assessment of compliance management systems must be streamlined with the requirements from different bodies. The regulatory and quality authority’s policies must be in compliance with the organizational policies. The automated compliance management system tools will provide the benefits to an institution.
Compliance Effects
The basic principle behind compliance management is to recognize, monitor and analyze the risk factors and extraction of knowledge through data input or variables given. Every event in a process refers to a process instance. The compliance management system needs to store the information about a given scenario. The corporate body needs to focus on the implementation of compliance models which are-de facto and de jure. The de facto models control the real scenario where as the de jure model specifies how the things must be handled. The compliance management system includes following processes-
- Discovery of a problem
- Auditing
- Navigation
A systematic compliance monitoring system needs to have compliance monitoring employees that are entrusted with the responsibility of preparing the reports. The compliance monitoring employees need to prepare the report with a few adaptations and elicitations made on compliance monitoring approaches.
The compliance monitoring employees are given relevant training. A compliance monitoring employee needs to enhance its skills and assessment of different regulatory bodies is necessary. In order to deal with compliance monitoring, the CMF and CMA framework must be studied. This serves as the basis for evaluation design-time methodologies. A compliance monitoring employee must be well versed with the compliance monitoring language.
The relevant studies on different compliance processes must be studied by the enterprises. These include-Pre-activities of reviews, transaction activities, review of quality checks and external data. A comprehensive review of staff checklists. The review of customer calls and attending the presentations. The compliance monitoring process can be independent or dependent on certain external and internal sources. The objective of compliance monitoring system must be concise and must not bias the audit activity.
The top management leadership is responsible for the audit of any given event. An administration framework must be developed and written procedures must be maintained that ensure compliance monitor with written rules. Supervisory credentials are necessary for establishing primary and secondary guidelines. An event audited must be double checked to evaluate and respond to any error. Business processes must be integrated with a corporate activity. Differing goals of a corporate body must be ore-written and necessary steps taken for effectively achieving the process goals.
The compliance monitoring system can be illustrated with the help of a given instance-The formulated questionnaire on a demographic variables and underlying motives studied for a given brand or a product is presented to Board of Directors in the form of a sales presentation. The less or more risky variables with relevance to economic policy are depicted in the sales data. The compliance monitoring team and management committee needs to monitor the validity of presented data. The team is expected to assess the single transaction, external changes, and employee’s stress (with respect to the respond given to a particular set of questions). The accuracy of presenting data and highly risky transactions must be evaluated with the help of a compliance monitoring team.
The data are pertaining to a demographic area or situation which may encounter a wrong set of parameters. The management team reviewing the sales presentation is likely to emphasize on the data sensitivity and core competence requisite for performing a given task. These errors can be attributed to oversight of few parameters which stresses on appropriate training and monitoring for itself. The compliance monitoring teams have a different point of view which includes the movement towards implementation of an enterprise model which assesses the risk factors and identifies the wrong parameters at initial stages. This can be achieved through the adoption of apt statistical techniques aligned with the compliance software and evaluation of highly risky transaction.
Risk Management System
The Board of Directors and Compliance management committee reviews-
Who is responsible for an error which may occur during the delivery of a competency model with relevance to brand or product image?
The Review suggests-
The highly risky transactions occur on a daily basis. The responsibility is not only just assigning a particular task to the staff. People have authority, capability and reciprocate to success or failure. The extent to which a variable is missing leads to non-achievement of goals and management complete do not rest on spot checks.
The compliance department provides independent assertion and value to the organization by reviewing the usefulness of compliance controls. The management of a corporate structure needs to be operated through a risk regulation committee and deliver fair outcomes. All the work in an organization must be carried out independently. The monitoring methodology is based on the premise of providing solutions which are unbiased and impartial reviews. The compliance monitoring colleagues must have access to all the documents. All the information needs to be treated with confidentiality. The compliance monitoring committee management action plan must be streamlined with agreed methodologies. The methodology includes assessment of key documents. These include- business plan, consultation papers, risk profiles, engagement plan with stakeholders and risk outlook. The annual plan of any corporate body is risk based and must present an assessment of the resources deployed. This must take into account the customer perspective.
The compliance monitoring methodology involves core compliance, customer reviews outlook, research on key stakeholders and compliance with different bodies, quality assurance and sampling and field work and reporting. Compliance monitoring requires reporting on a daily basis and compliance monitoring head needs to report to the COO of the company. A close association exists between the compliance monitoring system and audit committee with a view of maximizing the effectiveness framework. This includes annual planning and reviewing stages. The reporting system requires producing compliance reports and distributed to an agreed list of distributors. These must be clearly listed on the compliance, distribution list. The monitoring report needs to present approach findings and recommendations. This must be in liaison with management actions. The management committee needs to rate the review findings from extreme to low and review report must be provided with the ratings of A-D. The compliance monitoring statement of agreement is required for regulating the review report outside to the group members.
Compliance monitoring group reports to the Management Committee. The compliance monitoring colleagues need to prepare a report on budget and plan, performance report against set standards, the findings report and audit committee report. The monitoring charter must be reviewed annually by the management committee and risk officer. This must be presented annually to the Board of Directors and audit committee.
Compliance monitoring body must needs to provide improvements on a quarterly basis on relevant controlling systems. The compliance monitoring body is independent of assuming any responsibility with reliance to the installation of systems, design of any procedures. The responsibility with the installation of a new system, design procedures lies with operational team with relevance to the compliance monitoring individual. The compliance monitoring scope is not only limited to mitigating compliance risks. Independent compliance can prevent the repetition of functional mishaps. The management commit must be able to view the past, present and future risks. Independent compliance systems are deterministic in nature and valued by compliance employees. Protection of an institution’s reputation and brand is also a major aspect of compliance systems.
Consumer Protection Laws
The comprehension of the premise not-a-single-size fits every organization is the basis underlying the compliance system. An Adaptation of a program to meet with the different needs of the organization is achieved through risk evaluation. Development of a compliance plan for any corporate body requires assessing the areas of high risk priorities and committee support for execution of the plan. The broad knowledge and expertise is required by the compliance management employees to identify or remedy any scenario that occurs. A corporate structure needs to address the different risk models which must be drawn regularly. A corporate body must have appropriate corporate governance in place and compliance plan must be shared with the regulatory persons-in-charge. The compliance management committee is responsible for the design, installation, and complete control of the compliance software. A firm may or may not have a compliance monitoring system, but pertaining to the regulatory guidelines and policies is essential.
An external perspective is must, which can provide an action plan on the industry practices. This may not be in-house practice to implement the compliance monitoring systems. The overall business strategy must be managed through the appropriate compliance monitoring system. The validation of a present compliance monitoring plan is based on the present risk scenario. The frequency of a review or the risk model is largely dependent on the regulatory bodies or effective compliance systems within a corporate body.
The output of compliance monitoring is largely dependent on the frequency of guidelines formulated by the Board of Directors. What is the interrelation which exists between the risk delivery model and compliance monitoring system? A compliance monitoring team is set up which assess the risk plan of a corporate structure and provides a compliance monitoring action plan. The risk can be attributed to the product variables, misconfiguration of a system, economic structure and others. A compliance monitoring action must show the future course of action to be adopted against the deviation resulted due to the risk delivery model adopted by an organization. The Board of Directors needs to assure the key personnel for the audit and mitigation of risk through an approved compliance monitoring system.
A company may or may not have the adequate resources to implement a compliance monitoring system within its structure. The company’s Board of Directors need to accept proposals from the new investors and make enhancements or required changes as required from time to time. The Board committee ensures appropriate financial management and safeguarding the interests of common public. What is the schedule of a compliance review? The Board of Directors need and Compliance monitoring employees need to identify the risk based activities, irregularities in claiming data or audits, reimbursements and others. The compliance monitoring plan is considered largely at risk, when issues remain unaddressed within a given period. The compliance Management committee must identify the program indicators and opportunity to evaluate the action plan adopted in a specific period.
Conclusion
The compliance monitoring system must be effectively run throughout the different firms. A compliance panel is accountable for delivering the practical solution. The implementation of pragmatic approach requires a regulatory insight.
The compliance Monitoring Committee needs to review the following points-
- The compliance monitoring committee needs to review the compliance controls so as, to meet with the established standards.
- The Risk officer needs to conduct the special risk reviewed from time to time.
- A thematic review of the areas of prime concern must be conducted.
- The management action plan must be reviewed on a quarterly basis and assessment of the risk indicators.
- An Appropriate approval must be for the contacts with third party.
- An Annual risk plan with relevance to the compliance monitoring system must be developed. The Approval of Audit committee is required at implementation stage.
- The Board of Directors need to devise an action plan on mitigating risk factors.
- The plan must be delivered to the appropriate regulatory bodies, executive management and risk committee.
- The assessment of financial findings of compliance monitoring reports.
- The verification of the action plan devised by the management committee and include in the compliance monitoring system.
The corporate firm needs to assess the opportunity costs or legal fees that have undergone in the implementation of a risk delivery model. Health care is similar to an institutional body which requires an association with the regulatory structure and compliance monitoring systems to assess and evaluate the present conditions. The institution needs to analyze the several costs associated with the damages occurring at a given stage. The recognition of demographic variables and consumer factors at an early stage is necessitated through an internal controlling system. The compliance monitoring system must be implemented at different departmental levels including- sales and marketing, finance, human resource and operations. The compliance monitoring system provides real-time data through the analysis of internal and external variables. This is achieved through the proper training provided to Compliance monitoring employees and enhancing skills.
The ethical compliance with the management actions may leave the company with an advantageous position. The incorporation of ethics into a compliance monitoring system is must for a corporate body. The auditing activity and effective compliance monitoring system must be designed to fit with the business processes. Besides implementing of compliance management system, COSO and COBIT 5 are IT regulatory bodies that encourage the risk management techniques. The health care model needs to be evaluated through a critical compliance activity. A detailed guidance must be provided to the organization employees on external and internal variables that discrete ethics. The company’s structure must periodically review the compliance system, policies and procedures. To create a competitive advantage in an organization, the compliance monitoring system must elaborate the principles. In order to resolve the issues and violations, a proper channel for inefficiencies and operational excellence must be in practice. The institutions need to focus on compliance structure through infusion of management skills and effective distinguish the coercive actions.
References
McGuire, W. (2006). Adviser recordkeeping requirements. Journal Of Investment Compliance, 7(1), 43-54.
Davilas, C. (2014). AML compliance for foreign correspondent accounts: a primer on beneficial ownership requirements and other challenges. Journal Of Investment Compliance, 15(1), 4-16.
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