Today’s organizations always look for methods to decrease costs, improve operations, and enhance productivity. As a result, many firms have begun employing communication software to automate numerous company-wide tasks. These programs include a wealth of features that facilitate effective collaboration between businesses.
However, when communicating with vendors and other business partners, many companies are ignorant of the risks associated with using these programs. This is because a Communication Compliance Platform can open the door to unethical business practices and make it simple for unauthorized parties to gain access to confidential data.
These programs are not just user-friendly; they also pose several security risks that enterprises should evaluate before implementing. Read on to get further information regarding communication compliance platforms.
Image source: https://unsplash.com/photos/npxXWgQ33ZQ
Why You Should Implement Communication Compliance Platforms
Communication compliance is a collection of rules meant to identify, collect, assess, and take action on inappropriate communication across all workloads. Communication Compliance programs equip firms with the means to detect regulatory compliance violations (e.g., SEC or FINRA), including disseminating sensitive or secret information, harassing or threatening behavior, and sharing sexually explicit content.
Communication compliance policies can help in examining organizational messaging in several crucial compliance areas, such as:
Users must adhere to authorized use, professional ethics, and other corporate practices in all business-based communications. Communication compliance policies can discover policy matches and assist with implementing corrective measures to mitigate these situations. For instance, you can review user communications in your business for human resources issues like harassment or potentially unpleasant or improper language.
Organizations are accountable for all communications transmitted across their infrastructure and corporate network systems. Communication compliance policies can help identify and manage possible legal exposure and risk. They can also assist organizations in mitigating risks before their ability to harm corporate operations.
For instance, you can examine messages within your business for unlawful communications and conflicts of interest on sensitive initiatives, such as impending acquisitions, mergers, earnings releases, reorganizations, and changes to the leadership team.
Most firms must comply with regulatory compliance criteria as part of their regular operating procedures. These requirements frequently necessitate implementing a supervisory or oversight procedure for industry-appropriate communications. Rule 3110 of the Financial Industry Regulatory Authority (FINRA) is an excellent example of a regulation requiring enterprises to have supervisory processes to monitor user communications and the sorts of industries it engages in.
To prevent insider trading, bribery, and collusion, there may also be a need to investigate broker-dealer communications within your firm. Communication compliance policies can assist your firm in meeting these obligations by offering a method for analyzing and reporting on corporate communications.
Image source: https://unsplash.com/photos/g1Kr4Ozfoac
Advantages of Communication Compliance platforms
Compliance is a crucial but frequently overlooked part of many businesses’ operations. Typically, compliance takes precedence over other objectives only in case of a disaster or a court order against the company. Regulatory compliance has become an increasingly pressing issue for many financial services and insurance firms. Moreover, compliance regulations are in perpetual flux, making compliance challenging in a dynamic context.
When a business employs compliance as a competitive advantage, this situation is called Customer Communications Management, or CCM.
CCM technology enables businesses to send authentic and effective customer communication through letters, invoices, statements, and notices. Previously, such information was disseminated by printed materials, but with the development of digital technology, it has changed to mobile, email, SMS, and social media.
Today, customer experience is a crucial feature for organizations and a key differentiator between the best and the rest. The degree to which a client is interested in and uses a company’s products or services is a key indicator of the quality of their communication with the firm. You must exercise caution regarding the content, tone, and intended recipients of the communications sent. This becomes even more important for the insurance and financial services industries. These companies have operational compliance teams to handle such details and monitor customer communication for violations.
Image source: https://unsplash.com/photos/pqzRfBhd9r0
Compliance risk is quite high for financial institutions and insurance firms. Companies strive continually to stay up with ever-changing rules. Noncompliance has severe consequences, even for routine tasks such as providing a loan statement.
Using compliant consumer communication as a competitive advantage is not a one-and-done job. Many businesses are not yet ready for CCM compliance for several reasons, including:
- Lack of control
- Time constraints
- Absence of compliance oversight
Managers tasked with developing content or marketing campaigns often view regulatory compliance as a barrier that needs to be overcome to achieve success. Incorporating compliance into a business’s planning, developing, communicating, and creative processes requires little more than a shift in attitude.
Image source: https://unsplash.com/photos/LtNvQHdKkmw
The Bottom Line
In recent years, the rising complexity of the corporate environment has presented risk and compliance teams with multiple opportunities and challenges. The scope, scale, and necessity of effective compliance are only becoming stronger due to several factors. These factors include an uncertain macro environment, an ever-changing regulatory framework, and the physical and emotional toll of the pandemic on professionals across all sectors.
Multiple organizations are integrating communication compliance platforms into their processes to take advantage of their numerous benefits. Utilize this guide to learn why you should adopt one for your organization and the benefits these programs may provide.