Scott Tominaga Gives Clarity on the Concept of the Compliance Department

compliance department

The word ‘compliance’ comes from the word ‘comply’ which means ‘to abide by.’ Every place, business, or organization has to follow certain set rules and regulations. Some may have a department to ensure compliance within the workplace and in some cases, the employees themselves are expected to adhere to the standards and policies without being monitored. It is this department of an organization that makes sure that all its employees are complying with the state or territory and industry procedures and policies is known as the ‘compliance department’ informs Scott Tominaga.

Responsibilities of the compliance department

He further enlightens that five elements need to be looked into by the compliance department. They include identifying the potential risks, assessing the risks, preventive measures that can be employed, monitoring the altered process, and noting the successful ways of mitigating the risk or at least reducing it. Everything needs to be recorded in reports for future reference. The department and personnel in charge of compliance ensure that the issues are resolved and also offer advice on how to avoid those risks later as well.

Scott Tominaga says that it is the compliance department personnel who will identify the risks that the organization is likely to face. Following this, control measures should be introduced to help prevent the occurrence of those risks. It may not always be possible to completely do away with the risks or hazards, but efforts should be made to at least reduce the ill effects of the probable risk.

Control measure implemented

The employees of the organization must also be responsible to comply with the legal sanctions attached to their organization as well as their role. Training is one of the most common ways of implementing a control measure. It is very effective in imparting knowledge about a particular change in the legislation or even training the new employees in the operations of the organization as per the standards and practices.

Post the training feedback is taken from the employees and analysis is done to check for the changes that have been put into practice concerning compliance. A report is prepared in this regard to check for the effectiveness of the control measure thus put into practice. The compliance department which comprises officers and advisors scrutinizes any issue of non-compliance, according to Scott Tominaga.

Measures to understand reasons of non-compliance

On finding any issue of non-compliance they take action to understand why there was non-compliance. They conduct meetings and carry out consultation processes by virtue of which they can figure out the possible reasons for non-compliance and then suggest ways and means overcome them. Sometimes there may be problems in understanding on the part of the employee. At times the various reports of the organization reveal there may be some faulty equipment, tool, or machinery. Control measures are put to work here and ascertained that the same problems do not arise again.

Consequence of non-compliance

The direct consequences of non-compliance include being fined, imprisoned, or even losing of license for the trade, in cases of extreme non-compliance. The company’s explanation of the nonconformity to be a mistake and not a habit is the only thing that could work as an alibi for them and ward off harsh punishment for non-compliance. Anything less than that will surely earn them heavy penalties from the legal police.

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