In general, compliance in many organisations needs to be reactive rather than proactive. Companies proactively become more advanced, and high-tech eventually place greater value on compliance. They are now utilising data from compliance audits to gain a competitive advantage and reduce risk exposure over time.
When utilising compliance data as a source of information offers great insight into both internal and external processes, performance and control metrics. As compliance evolves, so does the term digitised compliance. The result of this digital transformation thinking application of data is a state of “predictive compliance”.
How exactly does real-time data via audits enable enterprise and SMB businesses to predict and prevent future and current compliance risks?
The Future Of Predictive Compliance?
Compliance auditing is essentially the process of viewing potential out of place risks to better understand them and setting up a system of priority them in the governance structure. Compliance data across their enterprise, many compliance experts, are now seeking ways in which they can utilise this data to add value back to their business.
Prejudice compliance maintenance guidelines function in a similar way to predictive compliance. Predictive maintenance uses data to make smart estimations when critical control process failures or events will occur. This allows maintenance to be performed before failure occurs, but at the lowest frequency possible without incurring the costs associated with irrelevant maintenance, or costly reactive maintenance.
Applying this methodology to compliance affords a business the same type of future-proofing in compliance costs and resources as it does in maintenance areas.
From Randomised Risk To Predictive Risk
Enterprise & SMB generally go through a compliance journey in stages similar to the following:
Basic compliance– The business lacks the identification of critical control processes, policies and procedures.
Standardised – Some Formalisation – Some critical business control processes exist, as well as some systems and tools in place to collect data. Information may not be complete and accurate and is typically not used for decision making.
Rationalised compliance or active management – Company policies, and tools are used to manage critical business control processes. Reliable information from audits is used to manage the assets to business performance measures and targets.
Dynamic and Optimised – Near real-time alignment with the changing regulatory landscape and the needs of the business. This gives the business a competitive advantage through active and predictive compliance programs.
Ready To Get Started?
Learn how your business can benefit from ReadiNow by booking a demo.