Compliance are statutory and regulatory requirements which has been a keystone of the ISO standard since their introduction, and since that time this requirement has been escalated for strong compliance enforcement. we shall focus on three main activities to achieve compliance with regulations for your company: keeping up with legislation, ensuring compliance, and managing compliance. Compliances helps organizations in many ways like:
- Reduced legal problems
- Improved operations and safety
- Better public relation
- Higher employee retention
- Ease of doing business
Difference between statutory and regulatory requirements
Both statutory requirements and regulatory requirements are those requirements that are required by law. These requirements are non-negotiable and must be complied with. Failure to comply a legal requirement may result in a fine or penalty and possibly a custodial sentence for the organization for such failure.
“Statutory refers to laws passed by a state and/or central government, while regulatory refers to a rule issued by a regulatory body appointed by a state and/or central government.”
Statutory requirements are those requirements which are applicable by virtue of law enacted by the government. These are enacted by passing the law in the legislative assembly or parliament. A regulatory requirement can be termed as administrative legislation that constitutes or constraints rights and allocates responsibilities. It is somewhat different from the statutory legislation and there can be following types of regulations applicable on an organization:
– Legal restrictions or responsibilities declared by a government authority
– Self regulation by an industry through trade association
A simple example for Educational Institution:
- Educational System developed and passed in parliament of India is a statutory requirement.
- Controls applied by Directorate of Controller of Examinations to institutions are regulatory requirement.
Another example for automotive industries:
- Companies Act 2013 (amendment bill 2014) and Motor Vehicles Act 1988 (amendment bill 2015) are statutory requirement.
- ARAI (Automotive Research Association of India) is a regulatory body responsible for the car mileage figure in India.
ISO Management System Standard requires an organization to determine and control the statutory and regulatory requirements applicable to the organization’s products and services. It is the responsibility of the organization to demonstrate compliance within its management system. So it is imperative for the organization to be aware of the general and specific statutory and regulatory requirements applicable to the product and services within the scope of the quality management system.
Compliance Management Simplified
Understanding issues
Which and how the compliance management system will fit into your organization’s current goals and operations.
Define interested party requirements
Considering all interested parties and stakeholders when implementing a compliance management system.
Determine program scope
Considering how far to extend the reach of the program.
Establish governance principles & compliance policy
Considering the complementary processes needed to ensure the compliance management system is successful and sustainable.
Identify obligations & risks
Familiarization with enforced local legislation and/or regulatory bodies, and self-appointed agreements that the organization has entered into.
Develop plan to meet obligations & address risks
Monitoring the compliance management system for updates that may affect its profile, and making adjustments accordingly.
Establish accountabilities & responsibilities
Ensuring the compliance management system receives full support and investment from the highest level of management.
Implement compliance management system
This step involves conceptualizing how the compliance management system will actually work.
Evaluate program performance & compliance reporting
An exhaustive list of recommended performance metrics and data to be tracked.
Manage non-compliance & continuous improvement
Ensuring a timely, efficient system is in place to immediately address, correct or mitigate noncompliance.
PMG’s Factor
In PMG we have the best of the consultants which aims at developing the competence in the organization by making the employees do the work under the continuous guidance and gainful knowledge experience. Compliance management is a critical process and needs a lot of correct guidance. We have a whole new concept of identification of compliance applicable to organization, frequency of action to be taken, responsible person and what is current status. Record management becomes very easy with us and that directly helps in catching up deadlines of return and documents to be submitted.
“Ensuring compliances ensure business continuity”