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Compliance management is a best practice which benefits every organization. It is defined as being in the state of accordance with guidelines, laws and legislations or specifications. For example, software applications are developed according to specific guidelines and requirements.

Compliance management is a best practice which brings together Privacy Act Compliance and Quality Assurance and Implementation of Company Policies. These tools of best practice can be internal or external and influence the reaction of people in an organization. Therefore compliance means following certain rules, and compliance management is all about executing compliance.

There are two compliance management models implemented for best practice. These include:

• The Ten Commandments Model: Here rules are set, and those who fail to comply face the consequences of failing in best practice. The rules are easy to understand and follow with clear interpretations. Therefore complicated rules like the ISO9001 or the Privacy Act which are difficult to memorize or access are simplified and broken down.
• The Quality Management Model: Here a set of intermediary policies and procedures are established in compliance with the rules. People in best practice ensure they follow these policies and procedures. This model is usually specified by ISO9001, the Financial Services Reform Act and AQTF. Many organizations and industries however have their own policies and acts. For instance, Registered Training Organizations must comply with the AQTF standards while those companies manufacturing medical instruments will need to comply with TGA’s GMP code.

It is important to understand that compliance with policies and contracts is a crucial best practice aimed at benefiting organizations. With proper compliance management there are bound to be improvements in achievements over the years. In some industries this best practice serves as a shield against audits and other regulations.

However, compliance management is becoming a concern because there is an increased lack of understanding. As there are new legislations and regulations established, there is a rise in confusion. Therefore compliance management best practices need to be improved and implemented with proper understanding.

Further reading: Corporate Governance | Audit | Performance Improvement