If you’re having difficulty wrapping your head around developing a compliance management system, think of it like a course in school. There’s homework, presentations and exams, all of which involve research and critical thinking. At some point, an authority figure evaluates your company. You may be assigned a grade, and you’ll face serious consequences if you don’t measure up.
Of course, unlike a class in high school or college, compliance doesn’t have an end date. Nonetheless, there are moments along the way at which you will pass or fail, and—as is the case for every student—it’s up to your organization to sufficiently prepare, because your evaluator is trained to smell BS.
That’s where your internal audit process comes in. If your compliance policy is your textbook, internal audits are tests and a CFPB audit is the final exam. One more analogy for you – your quality assurance processes are your homework. The audits help you see what’s sticking, what areas need work and what corrective measures to take. It’s every opportunity you take to learn and improve.
Here are three questions to ask to ensure your organization is making the most of its homework:
Just a Reminder: We’re not your lawyer (of course, right?) Remember that this article’s for informational purposes and not intended to provide legal advice.