The Different Types of Business Compliance Management


Business compliance as a service refers to an organization obeying the applicable laws and regulations on how they conduct their business, their personnel, and the treat toward their customers. The basic concept behind proper compliance is to make sure that companies act legitimately within the framework of society. One of the things that business compliance involves is the handling of confidential information. Any business that would like to be compliant must first ensure that confidential information is properly handled at all times. In addition to that, this also applies to the handling of financial documents and other types of sensitive financial information.

Business compliance is governed by four main principles

that include the protection of intellectual property, the protection of financial information, the protection of consumer safety, and the protection of the good name and reputation. A business that abides by these regulations is said to be in full compliance with all internal and external requirements. All regulations begin by covering what they are trying to say and then go on to define how those requirements should be implemented. However, the key issue here is that a business has to have a solid understanding of the law before implementing any of the regulations.

The Small Business Administration defines a small business compliance policy as follows: “A small business compliance policy is a written code of conduct for the protection of the small business and its staff members against liability claims and damages in the event of negligence, errors or omissions that injure the property or expose the public to harm.” Basically, every business that works directly with the general public must establish a system for how they will be held liable in case of a lawsuit. There are many different techniques that can be used to implement a small business compliance policy. Some of the most common techniques include the following:

EDISclosure: An EDISclosure is an important aspect of a small business compliance requirement. An EDIclosure is a document that is provided to a customer that contains a listing of all of the company’s internal policies and procedures that relate to how the business satisfies the requirements of the Small Business Administration. A great example of an EDISclosure would be a checklist outlining the qualifications that all employees must meet in order to work at one of the Company’s facilities. Every employee would sign this checklist so that they know exactly what they need to do.

Compliance kits: Compliance kits are essentially a list of the types of regulations that apply to your company.

These regulations generally include what types of records a business should keep on their employees as well as what they should do to avoid violation of the law. The main purpose of a compliance kit is to alert employees about the specific regulations that they need to follow. The most common type of kit is a single-use compliance manual.

Compliance dashboards: Compliance dashboards are similar to the above. However, they present more detailed information. Compliance dashboards generally provide the percentage of a business’s employees that are in compliance with the Company’s regulations, which areas of business are considered to be in violation of the law, and other useful statistics. In addition, compliance dashboards can be used to keep a business up-to-date on any changes that may occur throughout the year to its various regulations.

  • Licensing audits: A license audit involves a business looking closely at the legal obligations that it has under Federal, State, and local laws.
  • This type of audit focuses on whether the business is following the regulation implementation process outlined in the Standards for Maximum Compliance.
  • This includes inspecting documents related to FIFO, or First In First Out, and SOPs.

All businesses need to follow the law in order to stay in compliance with their licensing requirements. Therefore, license audits are necessary in order to make sure these regulations are being followed by the business.

Compliance dashboards: Compliance dashboards will list the areas of a business that are in violation of the law. As soon as a business is notified of a violation, it must take action to correct the violation before it becomes a violation and becomes effective. If the business does not comply, then it could face fines and penalties, as well as other actions. Therefore, becoming aware of the legal obligations of your company is one of the best ways to ensure compliance.