Compliance has never been more critical or more complex. With the rise of cross-border operations, growing regulatory scrutiny, and increasing cyber threats, compliance is now a strategic imperative for risk and governance professionals, not just a box-ticking exercise. Failing to get it right can mean multimillion-pound fines, reputational damage, and operational disruption.
But compliance done well is a powerful asset. It strengthens internal processes, earns stakeholder trust, and enhances resilience in uncertain times. This guide explores the best practices risk and compliance leaders need to build a sustainable, proactive, and effective compliance program.
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What is compliance and why does it matter?
At its core, compliance is about adhering to applicable laws, regulations, and standards. But in a governance, risk, and compliance (GRC) context, it’s more than legal conformity – it’s operational discipline, reputational stewardship, and strategic assurance rolled into one.
Effective compliance management reduces risk exposure, improves decision-making, and strengthens stakeholder confidence. It’s also the foundation for integrated risk management, where compliance doesn’t sit in a silo but supports broader enterprise objectives.
Building a resilient compliance program
So what does "good" look like? A modern compliance program needs more than policies and procedures. It must be dynamic, data-driven, and embedded into everyday operations. Here are the pillars that matter most:
Risk-based compliance management
Every strong compliance program starts with understanding risk. Not all non-compliance is equal – and neither should your response be.
Compliance risk refers to the threat of legal or regulatory penalties, financial loss, or reputational harm due to failure to act in accordance with laws and regulations. These risks vary by sector but often include:
- Data privacy violations (e.g. under GDPR)
- Financial misreporting (e.g. SOX non-compliance)
- Anti-money laundering (AML) breaches
- Workplace health and safety incidents
The key is to conduct targeted, regular compliance risk assessments. Use heat maps, control frameworks, and risk registers to prioritise issues and inform your compliance strategy. Protecht ERM helps automate this process with configurable risk registers and linked control libraries.
Effective internal controls
Controls are the beating heart of compliance. But for many organisations, they’re inconsistent, undocumented, or not fit for purpose.
Best practice calls for documented, tested, and risk-aligned controls management, following principles such as:
- Segregation of duties
- Automated approval workflows
- Monitoring for exceptions and anomalies
Controls should be proactive, not just reactive, helping detect and prevent compliance breaches before they occur. Continuous control monitoring, supported by audit trails and reporting dashboards, ensures that no issue falls through the cracks.
Navigating regulatory frameworks
Regulatory compliance isn’t one-size-fits-all. It’s shaped by industry norms, jurisdictional requirements, and operational complexity. According to Gartner, organisations using a formal compliance framework are 50% more likely to detect emerging risks early.[1]
Common frameworks across industries include:
- General Data Protection Regulation (GDPR): Mandates strict data privacy and protection rules for organisations handling EU residents' data[2]
- ISO 37301: The international standard for compliance management systems, outlining how to establish, develop, implement, evaluate, maintain, and improve a CMS[3]
- ISO 27001: The international standard for information security management systems, commonly used to structure and verify cybersecurity controls[4]
Financial services institutions like banks and insurers operate in one of the most regulated environments globally, with overlapping standards and strict oversight. Common frameworks and obligations include:
- Basel III: A global regulatory standard on bank capital adequacy, stress testing, and market liquidity[5]
- Dodd-Frank Act: U.S. legislation that improves financial transparency and consumer protections in areas like derivatives trading and systemic risk[6]
- APRA Prudential Standards: Enforced by the Australian Prudential Regulation Authority (APRA) to govern operational and financial risks in banking, insurance, and superannuation[7]
- FATF Recommendations: A set of international standards for anti-money laundering (AML) and counter-terrorist financing (CTF)[8]
Healthcare and aged care organisations must also comply with a variety of complex rules governing privacy, patient safety, and clinical practices:
- HIPAA: U.S. regulation that sets national standards for safeguarding protected health information[9]
- My Health Records Act: Governs individual control, access, and privacy of personal health records in Australia[10]
- Aged Care Quality Standards: Core compliance standards under Australia’s reformed aged care legislation, focused on patient rights, governance, and risk management[11]
A strong compliance program must be adaptable, tailored to fit both broad regulatory expectations and niche sector requirements.
Empowering the front line through training
Policies and controls only work if people follow them. That means training isn’t optional, it’s essential. Some key points to consider include:
- Designing engaging training: Move beyond slide decks. Best practice compliance training is interactive, contextual, and role-specific. Use real-world scenarios, short modules, and frequent refreshers to drive home the “why” behind compliance.
- Accountability drives culture: Train staff, but also hold them accountable. Use policy attestation tools, compliance checklists, and role-specific responsibilities to embed compliance into everyday decision-making.
Leveraging technology for compliance success
Manual compliance processes are slow, error-prone, and hard to scale. That’s why technology is now essential for modern compliance management. GRC platforms enable:
- Real-time risk and control tracking
- Centralised policy and obligation management
- Automated alerts and escalations
- Audit-ready reporting
They also simplify version control, workflow approvals, and cross-functional coordination – critical for fast-moving teams.
Compliance doesn’t have to be reactive. Use analytics and dashboards to spot trends, benchmark performance, and drive improvements. Machine learning is increasingly used to detect anomalies, flag high-risk activities, and identify patterns of non-compliance before they escalate.
Measuring compliance program effectiveness
Compliance without measurement is like risk management without reporting: you’re flying blind. Some key metrics you may want to use include:
- Number and severity of breaches
- Time to detect and respond to issues
- Control test pass/fail rates
- Audit findings and resolution times
- Employee training completion and assessment results
Benchmark these against industry standards or historical performance to track progress.
Senior leadership and regulators expect transparency. Automated dashboards and reports help you tell the compliance story clearly: what’s working, what’s at risk, and where to invest.
Global compliance and third-party risk
For multinational organisations, compliance doesn’t stop at borders, or at your front door. Different regions interpret compliance differently. Tone, process, and enforcement must be adapted without compromising your core standards.
For example, an Asia-Pacific office may view whistleblower protections differently than a North American counterpart. Your compliance program must strike the right balance between global consistency and local sensitivity.
At the same time, third-party risk is one of the fastest-growing compliance threats. Whether it’s a supplier, contractor, or software vendor, their failures can quickly become your exposure. Best practices in managing this compliance include:
- Conducting due diligence before onboarding
- Defining clear compliance clauses in contracts
- Continuously monitoring third-party performance
- Using technology to track third-party obligations and incidents
Good GRC software enables centralised oversight across your extended enterprise, helping you stay compliant even when outsourcing.
Conclusions and next steps for your organisation
When done right, compliance isn’t a burden, it’s a strategic advantage. It builds trust, reduces risk, strengthens governance, and enables better decisions across every level of the business.
To build a future-ready compliance program:
- Anchor it in your broader risk management strategy
- Invest in automation, analytics, and actionable insights
- Empower your people with accountability and training
- Tailor your approach to regulatory landscapes across industries and geographies
- Monitor performance continuously and adapt to regulatory change
But getting there isn’t easy, especially when compliance is fragmented across spreadsheets, siloed systems, or manual processes. That’s where Protecht makes the difference.
Protecht ERM gives you a complete picture of compliance, without the complexity.
- Centrally manage your regulatory obligations and stay ahead of change
- Dynamically link data across risks, controls, obligations, incidents and breaches
- Streamline attestations, policy approvals, and compliance actions with built-in workflows
- Leverage dashboards and real-time insights to spot issues before they escalate
- Reduce admin overhead and improve engagement from front-line to executive
Whether you’re managing regulatory change, preparing for an audit, or building a proactive culture of compliance, Protecht brings it all together in a single, powerful platform.
Request a demo and see how Protecht can simplify compliance and give your organisation the confidence to move forward:
References
[1] Gartner, 2023: https://www.gartner.com/en/newsroom/press-releases/2023-03-28-gartner-says-compliance-leaders-must-focus-on-risks-not-rules
[2] European Commission, Data Protection Rules https://ec.europa.eu/info/law/law-topic/data-protection_en
[3] International Organization for Standardization, ISO 37301 https://www.iso.org/standard/75080.html
[4] International Organization for Standardization, ISO 27001 https://www.iso.org/isoiec-27001-information-security.html
[5] Bank for International Settlements, Basel Framework https://www.bis.org/basel_framework/index.htm
[6] U.S. Securities and Exchange Commission, Dodd-Frank Overview https://www.sec.gov/spotlight/dodd-frank.shtml
[7] APRA Prudential Standards https://www.apra.gov.au/prudential-standards
[8] Financial Action Task Force (FATF) https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html
[9] U.S. Department of Health & Human Services, HIPAA Rules https://www.hhs.gov/hipaa/for-professionals/privacy/index.html
[10] Australian Digital Health Agency, My Health Record https://www.digitalhealth.gov.au/my-health-record
[11] Aged Care Quality and Safety Commission, Quality Standards https://www.agedcarequality.gov.au/providers/standards