Updated: Apr 25, 2021
Corporate compliance deals with both internal policies and procedures, as well as federal and state laws and regulations. A comprehensive compliance program helps your company to minimize the threat of rules violations in order to help protect your company from lawsuits and fines. A company’s compliance program should entail an ongoing process for creating employee awareness regarding the rules and laws that apply to your company and the industry in which you operate. It should be designed to teach your employees how to effectively perform in their job roles while adhering to these regulations.
The Key Areas of Corporate Compliance
Corporate compliance programs typically include the design, delivery, and review of policies, trainings, and procedures to adhere to specified regulations. The foundation of these programs is in the creation of formal policies designed to prevent legal violations. A comprehensive corporate compliance program includes the training of personnel on pertinent regulations, along with the application of procedures and mechanisms for the detection of potential breaches.
Some of the most common areas of compliance that must be addressed by businesses include:
Companies with publicly or privately traded securities must take steps to conform to SEC regulations and associated securities laws. These efforts include the use of appropriate disclosures, applying proper accounting procedures and the disclosure of relevant financial reports.
Health Insurance Portability and Accountability Act (HIPAA) rules apply to healthcare providers and health plans. HIPAA rules may also apply to healthcare clearinghouses that transmit health data electronically.
The General Data Protection Regulation (GDPR) applies to any organization that operates within the EU and stores or processes personal data of EU citizens. The GDPR also applies to organizations outside of the EU that provide goods or services to customers or businesses in the EU.
These regulations are in place to help ensure that companies that advertise or sell products to the public, or otherwise interact with consumers treat them fairly. Advertising, fraud, eCommerce, and loan practices all fall under FTC guidelines.
This growing area of compliance seeks to ensure that companies comply with all state and local environmental laws. Areas of environmental compliance include waste management, pollution, and approved use of water.
The Importance of Employee Training in Compliance Management
Employee training to create awareness and understanding of relevant compliance laws is one of the primary components of a compliance management program. Compliance training of employees is required by regulation to provide education to your employees regarding how they can perform their job roles while adhering to relevant rules and regulations. Corporate compliance training programs help to guard against improper conduct by employees and plays a key role in ensuring proper governance. Proper training will minimize risk and can help protect your brand and the reputational damage caused by breaches.
An LMS as Part of Your Compliance Management System
A learning management system (LMS) is the software application used to support online learning, otherwise known as “eLearning”. Using an LMS, your company can build and deliver compliance training content and courses. You can invite employees to complete training courses that are relevant to them in their job roles and track user participation and program completion. In this, way, an LMS can serve as a primary component of an overall compliance management system and strategy.
LMS Portals provides a cloud-based, multi-tenant LMS that allows our clients and partners to launch and deliver corporate compliance training for their employees. Using our system, your can launch private eLearning environments on-demand. And each portal you launch offers its own branding, learning paths, user onboarding, analytics, and more.