The 8 Essential Elements of a Compliance Program

Before you even begin to implement a compliance program, it’s important to understand the essential elements that make it effective. While technology is only becoming more intricate and leaving a lot of room for speculation about what the best platforms for compliance are, it is still pivotal to your program’s success.

See our table below to gain a brief insight into the different elements discussed in this article or read on to learn more.

Key Element	Brief Description
Written Policies and Procedures	Foundational documents: code of conduct, practical policies
Leadership Commitment and Governance	Board and executive visibility and support
Designated Officer/Committee	Accountable role(s) for compliance oversight
Training and Education	Robust, ongoing employee awareness
Communication and Reporting	Multiple, open, and anonymous reporting channels
Risk Assessment, Monitoring and Auditing	Systematic risk ID, reviews, audit activity
Enforcement and Discipline	Clearly articulated, consistently applied consequences
Response and Corrective Action	Investigate issues, adapt, and implement remediation

1. Written Policies and Procedures

By now your organization will have documented its policiesures, while providing your teams with a Code of Conduct. However, it is valuable to note that these policies must be maintained and reviewed to reflect new regulations and shift as the organization does.

2. Leadership Commitment and Governance

Demonstrating a commitment to a compliance culture is key on the part of leadership and senior executives. It is always helpful for teams to be provided with:

• An endorsement of ethical conduct
• Empowerment (for compliance officers and committees)
• Resources

3. Designated Committee

Apart from the presence of your compliance officer, a compliance program struggles to maintain accountability when there is no supporting committee. These groups will ensure there is:

• https://www.360factors.com/blog/credit-union-risk-management/Daily oversight
• Program development
• Correct implementation
• Escalation and reporting of issues

4. Training and Education

Providing one’s team with resources is crucial but it is even more important to ensure that they understand the documentation they have been provided. For this reason, ongoing compliance training is needed and should be tailored by job function, risk exposure and regulatory environment.

5. Communication and Reporting

To establish a fully effective program, organizations must introduce multiple channels for confidential reporting to occur. This will empower employees to help facilitate early detection of compliance breaches and may include:

• Hotlines
• Digital reporting tools
• Open-door policies

6. Risk Assessment, Monitoring and Auditing

Organizations need to conduct routine internal audits and reviews while also measuring the effectiveness of their policies and procedures. These continuous risk assessments allow teams to discover gaps before they escalate.

7. Enforcement and Discipline

Establishing a culture of accountability is driven by consistent reinforcement of disciplinary guidelines. A good compliance program will outline the consequences for non-compliance and set a precedent across business units.

8. Response and Corrective Action

In the event of a breach or non-compliance issue, taking immediate action is key. The compliance program must outline how to:

• Investigate
• Document findings
• Analyze the root causes
• Take corrective action

Creating a detailed evidence trail of these incidents helps to ensure that they happen less frequently.

Choosing the Right Compliance Program

Now that you have a list of elements to test, why not https://www.360factors.com/predict-360/see how Predict360 measures up? Our platform helps your organization adhere to all eight elements, giving your team a proactive edge when it comes to compliance and risk management.

Element	Feature/Capability	How Predict360 Delivers
Written Policies and Procedures	Policy & Document Management Module	Centralized repository, version control, approvals, real-time distribution and updates
Leadership Commitment and Governance	Executive Dashboards, Board Reporting Tools	Real-time compliance visibility, board-level oversight, strategic KPI alignment
Designated Compliance Officer	Role-Based Access, Audit Trail, Committee Management	Assigned responsibilities, transparent activity logs, accountability features
Training and Education	Integrated Learning Management System (LMS)	Automated training deployment, completion tracking, custom courses for different job roles
Communication and Reporting	Anonymous Reporting Channels, Alerts & Notifications	Confidential issue reporting, escalation workflows, management awareness tools
Risk Assessment, Monitoring and Auditing	Risk Register, Automated Monitoring, Audit Management, Real-Time Analytics	Dynamic risk ID, audit scheduling, trend dashboards, issue tracking
Enforcement and Discipline	Incident and Case Management, Compliance Investigations	Investigation tools, case tracking, documentation of disciplinary actions
Response and Corrective Action	Incident Response, CAPA (Corrective and Preventive Action) Workflows	Audit trails, corrective action tracking, remediation and prevention controls

These eight elements are what sets an excellent compliance program like Predict360 apart from a good one. Start scaling, streamlining and automating your compliance management process and’s latest regulatory standards with confidence.