What Makes a Best Practice?
Best practices are approaches that consistently produce superior results. In compliance, best practices come from regulatory guidance, enforcement trends, industry standards, and lessons learned from both successful programs and notable failures.
Implementing best practices helps organizations go beyond minimum requirements to build truly effective compliance programs. These practices reduce risk, demonstrate organizational commitment, and create sustainable compliance capabilities.
The Goal: Effective Compliance
Regulators increasingly evaluate not just whether required elements exist, but whether compliance programs are effective. Best practices focus on outcomes—preventing violations, detecting problems quickly, and fostering ethical culture—not just checking boxes.
Program Structure Best Practices
A well-structured compliance program provides the foundation for all compliance activities.
Strong Governance
Establish clear oversight structures with defined roles and responsibilities.
- Board-level oversight
- Dedicated compliance leadership
- Clear reporting lines
- Adequate authority and resources
Comprehensive Policies
Develop clear, practical policies that guide employee behavior.
- Written in accessible language
- Regularly reviewed and updated
- Easily accessible to all employees
- Supported by practical procedures
Risk-Based Approach
Focus resources on areas of greatest compliance risk.
- Regular risk assessments
- Prioritized controls
- Tailored monitoring
- Dynamic resource allocation
Effective Training
Build compliance knowledge and skills throughout the organization.
- Role-appropriate content
- Engaging delivery methods
- Regular reinforcement
- Effectiveness measurement
Building Compliance Culture
Culture is the ultimate determinant of compliance success. Even the best-designed programs fail without cultural support.
Tone at the Top
Leaders visibly champion compliance
Speak Up Culture
Employees feel safe raising concerns
Consistent Enforcement
Violations have consequences
Culture Best Practices
- Leaders model compliant behavior and ethical decision-making
- Multiple channels exist for reporting concerns confidentially
- No retaliation against those who raise concerns in good faith
- Compliance factored into performance evaluations and promotions
- Discipline is consistent regardless of level or performance
- Compliance successes are recognized and celebrated
Operational Excellence
Day-to-day compliance operations should be efficient, consistent, and well-documented.
- Standardized Processes: Documented, repeatable processes ensure consistency
- Clear Ownership: Every compliance activity has defined accountability
- Proactive Monitoring: Issues are identified before they become violations
- Timely Response: Problems are addressed promptly and thoroughly
- Thorough Documentation: Activities are documented for audit and improvement
Document Everything
If it isn't documented, it didn't happen. Maintain comprehensive records of compliance activities, decisions, and rationale. Good documentation demonstrates program effectiveness and protects the organization during investigations.
Technology Enablement
Technology amplifies compliance capabilities when thoughtfully implemented.
- Automate Routine Tasks: Free compliance professionals for judgment-intensive work
- Centralize Information: Single source of truth for policies, training, and documentation
- Enable Monitoring: Continuous surveillance of compliance indicators
- Facilitate Reporting: Easy access to metrics and status information
- Support Analysis: Data-driven insights for risk management
Continuous Improvement
The best compliance programs never stop improving. Embed continuous improvement into program operations.
- Regularly assess program effectiveness against objectives
- Learn from incidents, near-misses, and audit findings
- Benchmark against peers and industry standards
- Stay current with regulatory developments and expectations
- Solicit feedback from stakeholders across the organization
- Implement improvements systematically and track results