If you want to avoid fines and scrutiny—and let’s be real, what business doesn’t—then an effective compliance management system is a must. So what’s the secret to a compliance management system (CMS) that works? Read on to find out the 4 key components the CFPB says every CMS needs.
A compliance management system, or CMS, is a system comprised of documents, processes, controls, and tools that fulfill key regulatory requirements. An effective CMS is vital for preventing violations, and therefore protecting consumers and avoiding fines and scrutiny from regulators. Fortunately, the CFPB has outlined some useful recommendations about what a compliance management system should include.
While these recommendations are particularly important for consumer lending organizations, including auto dealers who are subject to CFPB oversight, they also provide useful insight for organizations overseen by other regulatory bodies.
Here are the four key elements that should make up the foundation of your organization’s compliance management system.
An effective CMS is vital for preventing violations, and therefore protecting consumers and avoiding fines and scrutiny from regulators.
Each of these required, interconnected elements are best enabled through an automated compliance program. With an automated compliance solution, you’re able to easily identify, define, formulate, monitor, and improve upon each of your organization’s required compliance actions.