Implementing Compliance policies within a company means generating actions that promote an ethical and risk prevention commitment towards the entire value chain that includes employees, third parties, etc., as well as the community in general. And that is beneficial for any company, regardless of its size, be it an SME or a large company.
For a long time, globalization and increasing competitiveness have made us rethink our business in a comprehensive way.
Values: Trust, honesty, commitment and integrity are values of an ethical culture within the company that also contribute to the sustainability, credibility, and, therefore, to the reputation of any organization. These values are part of a task that must be nurtured every day.
It is clear that a culture of compliance favours the necessary synergy between large organizations and SMEs to develop together and be successful. For an SME, the absence of a culture of compliance might entail a series of risks, both financial and reputational. A reflection in this regard would be: “In a value chain, the risk of the weakest becomes everyone’s risk”.
Compliance Policies: The implementation of Compliance Policies for an SME is important because the consequences of not having them may be irreparable. A large company may have better tools to survive to reputational damage caused by a lack of risk control. On the other hand, if an SME cannot face the economic consequences of an act of fraud or corruption committed by its employees or related third parties, its survival as an organization may be seriously affected.
An adequate risk control approach along with the successful and timely implementation of Compliance actions must be accompanied by effective monitoring, staff training and a real commitment from the company’s managers (Tone from the Top).
Compliance Culture: A compliance culture -in terms of integrity- allows an SME to achieve in advance a competitive advantage to be able to access international markets. If the SME is already part of those markets, it will help it to comply with the appropriate standards and best practices.
Compliance Program: These practical examples allow us to envision that, in the near future, every company should have a Compliance program and an organizational ethical culture, not only to mitigate and prevent potential risks, but also to favour and optimize the development of your business. That is why companies must begin to explore all the possibilities available to them.
Risk Analysis and Management: Risk analysis and management within an organization must be considered from a dynamic, detailed and precise approach when allocating the necessary financial resources. Many times, when talking about SMEs, it is thought that designing a compliance program can be extremely expensive.
Leaders’ commitment: However, reality indicates that a SME has intrinsic values that provide it with a plus, such as visible and present leadership, since, in general, its managers are usually personally involved in the business. Therefore, the so-called “tone from the top” is a very useful tool for an SME when it comes to transmitting ethical values.
Prevention and detection controls: The proximity of contacts and the most direct and immediate controls are characteristics that should be used when creating a culture of compliance within an SME. It is a good way to facilitate the prevention and early detection of fraud or corruption, as well as to report any improper behavior more quickly.
At G5 Integritas we can assist you in the design and implementation of a Compliance Program, be it your large, medium or small company, based on an adequate risk assessment and tailored to your needs. Through the implementation and adaptation of concrete measures, we can deepen and consolidate aspects that allow your SME to take off, in order to access new markets and create alliances with strategic partners based on the new post-pandemic economic scenario.
We invite you to contact us by writing to: [email protected] or visiting our website at www.g5integritaslatam.com