Streamline Compliance Processes with Automation Technology

What is process compliance and why do you need it?

Process compliance refers to the adherence of a company's processes and procedures to industry regulations, standards, and legal requirements. It ensures that a business is operating efficiently, effectively, and within legal boundaries, while mitigating risks and avoiding penalties. With the increasing number of regulations and industry standards, ensuring process compliance has become increasingly critical for businesses.

Non-compliance can lead to severe consequences, such as hefty fines, legal battles, and reputational damage. In contrast, adhering to compliance standards can enhance a company's reputation, increase customer trust, and improve overall business performance. As such, a well-defined and streamlined compliance process is essential to ensure that all internal processes align with external standards and regulations.

Achieving process compliance manually can be a challenging and time-consuming task. Legal has limited capacity and cannot oversee each and every aspect of the business. To mitigate risks, Legal department establishes systems that enable all business members to make informed decisions independently. When the business doesn't comply with the Legal's guidelines and policies, it opens itself up to financial and legal risk.

Why should in-house legal teams consider automating compliance processes?

Automation of documents and processes frees up your team’s capacity in multiple ways.

• Eliminate the effort required to replicate the same document content over and over. Automatically generate a high volume of documents quickly and retain the ability to review and verify content

• Automate workflows to ensure compliance of documents as they move through the lifecycle. This ensures documents are sent to the relevant parties. It also prevents key stakeholders being engaged at the wrong time or before their input is required.

• Use custom questions and threshold flagging to ensure correct process is followed

• Ring-fence documents and protect data by restricting it only to be shared with the relevant parties

• Easily access a clear and visible audit and activity trail when required to monitor the adherence of the business to internal compliance processes.

Examples of Compliance Automation in Practice

The Legal function’s job is to protect the business and minimise its exposure to risk, however it is a huge time sink to have Legal work on and triage every contract to the relevant stakeholders, even the simpler contracts such as Non-disclosure agreements.

To manage their NDAs as they embarked on a period of aggressive growth, Marissa Corda Global Head of Legal and Compliance at leading global solar company Sonnedix knew pressure of a mounting workload whilst trying to support the business with the same effective and high-quality service.

To empower the business to own more of their own contracts, like their NDAs, Sonnedix chose to partner with Plexus to digitise and automate their NDAs and approval workflows. In doing this, Sonnedix was able to upload their Legal-approved NDA template and configure the contract execution workflow specific to their business so users can create their own NDAs themselves without Legal involvement at every stage. The contract is immediately sent to only the required stakeholders for approval and signature.

As the process is automated, it is extremely easy for the business to use and empowers them to generate their contracts as needed without Legal intervention. Plexus' automation also gives Legal confidence that the contracts generated by the business are compliant with all legal and business requirements, meaning they can reclaim their time for higher-level, strategic legal work.

Marissa says the time savings are significant: “What used to take us multiple days now takes just 12 minutes to execute and draft an NDA.

What are the benefits of automating compliance?

1. Better Risk Management: Automating compliance processes can provide real-time visibility into an organisation's compliance status, enabling early identification of potential risks and issues. This can help organisations take proactive steps to mitigate risks and ensure that they are meeting their compliance obligations.

2. Improved Accuracy and Reduction of Errors: Compliance regulations require accurate and up-to-date data to ensure that organisations are meeting their obligations. Automating compliance processes can help eliminate human errors, ensuring that the data is accurate and consistent.

3. Cost Savings: Automating compliance processes can lead to cost savings by reducing the need for manual labour and minimising the risk of fines and penalties associated with non-compliance. Additionally, automation can help identify areas for further optimisation and improvement, leading to long-term cost savings.

4. Scalability: By automating compliance processes, organisations can quickly adapt to changes and have practices in place to scale at speed without increasing risk.

5. Increased Efficiency: Automating compliance processes can significantly reduce the time and effort required to complete them. By removing the need for manual data collection, processing, and reporting, automation can free up valuable resources that can be utilised elsewhere in the organisation.

6. Improved compliance reporting: Compliance management and reporting is essential for businesses to ensure that they are following all applicable laws and regulations. This refers to the practice of documenting evidence and reporting on regulatory compliance activities within an organisation. Using automation helps ensure that their compliance reporting is accurate, timely, and comprehensive.

Key Features of Compliance Automation Software

Compliance automation software is designed to assist businesses in meeting regulatory requirements by automating compliance monitoring, reporting, and management processes.

Customisable

One of the key features of compliance automation software is its customisability. The software can be tailored to meet the specific needs of the organisation, which is crucial because compliance requirements can vary by industry, jurisdiction, and company size. Customisation ensures that the software meets the unique needs of the organisation, which results in more efficient compliance management.

Customisation also allows organisations to tailor compliance automation software to their internal processes and procedures. For example, with Plexus it can be configured to match the business' delegations of authority matrix. This ensures that the software integrates seamlessly into existing workflows, reducing the time and resources required to manage compliance tasks.

Ease of use

When implementing new software, it's important to ensure that it is user-friendly and intuitive to navigate. This is particularly true for compliance automation software, as regulatory compliance can be complex and daunting for many businesses.

Compliance automation software like Plexus is designed to simplify compliance management. The software provides a user-friendly interface that makes it easy for employees to complete compliance tasks and access compliance-related information. With features like automated alerts and notifications, employees can stay on top of compliance requirements without the need for manual monitoring.

Additionally, easy-to-use compliance automation software can reduce the need for extensive training and support, saving organisations time and resources. It also speeds up the adoption of the software across the wider business.

All-in-one solution

Compliance automation software is an all-in-one solution that combines compliance monitoring, reporting, and management processes. However, when combined with workflow management and document management, it becomes an even more powerful tool for organisations.

Incorporating workflow management and document management into compliance automation software also provides a holistic view of compliance across the organisation. This allows businesses to identify areas of non-compliance and take corrective action quickly.

Real-time reporting

Real-time reporting is a crucial feature of compliance automation software. It allows businesses to monitor compliance on a continuous basis, providing immediate insight into compliance status and potential risks. This enables organisations to take proactive measures to mitigate risks and maintain compliance.

Real-time reporting can also provide valuable insights into compliance trends and patterns, helping businesses to identify vulnerabilities and optimise compliance processes. With Plexus, compliance data is easily accessible and can be used to generate custom reports that provide a comprehensive view of compliance performance.

Automated data collection and analysis

Automated data collection and analysis eliminates the need for manual data entry and reduces the risk of human error. The software can collect data from various sources, and analyse it to identify areas of non-compliance and potential risks.

Integration with existing systems

Compliance automation software can be seamlessly integrated with existing systems or applications, including HR and payroll software, accounting software, and document management systems. These types of custom integrations ensure that compliance data is accurate and up-to-date, reducing the risk of non-compliance and potential penalties.

By integrating compliance automation software with other systems, businesses can also reduce the duplication of efforts and streamline compliance processes. This results in increased efficiency, time savings, and reduced compliance costs.

Choosing the right Compliance Automation software for your business

Compliance automation software is an essential tool for any organisation looking to maintain compliance with regulatory standards. However, choosing the right software can be a daunting task, given the variety of options available in the market.

To choose the right compliance automation software for your business, you first need to assess your organisation's compliance needs. Identifying any process gaps will help you establish your requirements. Other considerations include the following factors:

Regulatory Requirements

The software you choose should be able to handle the regulatory requirements specific to your industry. It should have features that can help you comply with legal requirements and industry standards.

Data Security

Compliance automation software deals with sensitive data, so it should have robust security features to protect this data. Look for software that comes with security features such as encryption, access controls, and audit trails.

Support and Training

Look for software that comes with good customer support and training. You should be able to get help when you need it, and your employees should be properly trained on how to use the software effectively. This will ensure that your organisation can maximise the benefits of the compliance automation software.

Conclusion

In conclusion, compliance automation software is an effective tool for businesses looking to maintain compliance with regulatory standards. By automating compliance processes, organisations can reduce the risk of non-compliance and potential penalties, increase efficiency, and save time and costs. When choosing the right compliance automation software, businesses should consider their regulatory requirements, data security, scalability, and support and training. By carefully assessing these factors, businesses can select a software solution that meets their needs and helps them achieve compliance goals.

FAQs

What kinds of compliance processes can be automated?

Almost any compliance process that involves routine tasks can be automated. Examples include contract management, policy and procedure tracking, risk assessments, and audit management. Compliance automation software can help streamline these processes, reducing the risk of errors and ensuring that compliance requirements are met consistently.

Is compliance automation a secure solution?

Yes, compliance automation is a secure solution. In fact, automation can improve security by reducing the risk of human error and ensuring consistency in compliance processes. However, it is important to choose a reputable compliance automation software provider that prioritises security and uses encryption and other security measures to protect sensitive data. It is also important to regularly review and update security protocols to stay ahead of potential threats.

What types of technology are typically used for compliance automation?

Compliance automation typically involves the use of software solutions, such as contract management software, policy management software, risk assessment tools, and audit management systems. These software solutions may include features such as automated workflows, document management, reporting and analytics, and integrations with other business systems. Additionally, technologies such as artificial intelligence and machine learning may be used to enhance compliance automation by improving data analysis and decision-making processes.