Regulatory enforcement, customer and supply chain audits, and internal risk management initiatives are all driving requirements for managing regulatory obligations. Many companies—especially those that are not large enough for a dedicated team of full-time compliance staff—struggle with how to effectively resource their regulatory compliance needs.
Taking a balanced approach that relies on internal and external resources can help companies more efficiently and effectively create standardized management solutions. Outsourcing provides an entire team of resources with a breadth of knowledge/experience and the capacity to complete specific projects, as needed. Engaging in-house resources allows the organization to optimize staff duties and ensure that critical know-how is being developed internally to sustain compliance into the future.
Kestrel’s Right-Sized Compliance approach offers just that—a combination of in-house and outsourced resources that work together to help companies:
- Identify issues and gaps in regulatory compliance
- Achieve compliance with current obligations
- Realize improvements to compliance management
- Gain the internal ability to review and continually improve compliance management performance
Programmatic Approach to Compliance Management
Kestrel’s Right-Sized Compliance approach consists of the following three phases:
- Phase 1: Compliance Assessment. Kestrel seeks to understand how complete, well-documented, understood, and implemented the current compliance processes and procedures are. We further assess culture, model, and capacity to determine the company’s overall compliance process maturity.
- Phase 2: Compliance Program Improvements. Kestrel’s initial analysis of the compliance assessment forms the basis for developing recommendations and priorities for an action plan to strengthen programs, building on what already exists. The goal of Phase 2 is to begin closing the compliance gaps identified in Phase 1.
- Phase 3: Ongoing Program Support. The goal of Phase 3 is to transition the company from catchup compliance into compliance process improvement/program development and implementation. Kestrel does this by helping to manage the eight functions of compliance—identifying what’s needed, who does it, and when it is due—and finding the right balance of company and Kestrel resources.
Making the Connection
The connection between regulatory management and compliance needs to be well synchronized, with reliable and effective regulatory compliance commonly being an outcome of consistent and reliable program implementation. This connection is especially important to avoid recurring compliance issues.
Following Kestrel’s Right-Sized Compliance approach allows companies to realize improvements to their compliance management and:
- Organize compliance requirements into documented programs that outline procedures, roles/responsibilities, training requirements, etc.
- Support compliance management efforts with technology tools that create efficiencies and improved data management.
- Conduct the ongoing monitoring and management that are vital to remain in compliance.
- Gain the inherent capacity, capability, and maturity to comply, review, and continually improve compliance and overall business performance.