[SOLVED] How to Manage Compliance Documents

According to The 2023 Thomson Reuters Risk & Compliance Survey Report, 82% of respondents believe protecting data and reinforcing cybersecurity is top priority. The pressure to stay up to date with ever-changing compliance regulations in the corporate world is intense, to say the least. That is why having an airtight risk compliance management system is crucial. Especially with today’s constantly evolving technology.

With more legislation comes more burden to compliance teams. It’s an unfortunate truth across the board. No matter what sector you work in, new directives and compliance standards means more work. Of course, at the end of the day these regulators do have what is best in mind. It just means you as a compliance officer need to be a little more… detailed and organized. 

Having comprehensive documentation is pinnacle when it comes to showcasing your company’s compliance. Naturally, there are all different types of compliance documentation you will need to show in order to adhere to regulatory standards. This blog will help you by providing tips on managing that workflow. 

Managing and keeping well-defined compliance documentation also keeps you up to date on your risk and compliance process as it evolves. Staying vigilant of your processes, by itself, is a  tool in safeguarding your data. This makes it easier to adjust said process and mitigate risk depending on the threat in real time. So, let’s get started!

Table of Contents

What is Compliance Documentation?

So what is compliance documentation? It is information and data which companies document in relation to processes that meet regulatory requirements. Recording your actions through documentation during your process helps to later prove that you follow regulations and requirements. These can range from policy documents, like a code of ethics, to logs of compliance activity. Which might include types of audit trails.

Compliance documentation can effectively capture and measure the effectiveness of a program. As well as oversee its implementation across all portions of an organization.

It serves as evidence of how an organization meets requirements and includes:

  • Policies. 

  • Procedures. 

  • Controls.

  • Outcomes.

With audits in mind, organizations use this documentation to prove they comply with requirements pertaining to specific frameworks. This more accurately expedites the certification process. 

We went over a little of why this documentation is so important already in this blog. But there is in fact much more to talk about when we count the benefits of keeping organized processes. Let’s continue exploring the importance of compliance documentation. 

The Importance of Compliance Documentation

We already spoke on how important documentation is. Especially when it comes to proving industry compliance. Being able to show that a company has actively sought to prevent data breaches is vital. One reason for this is that it can mitigate sanctions in the event of a violation. 

If you can prove you were actively trying to avoid any wrongdoing, you're more likely to avoid severe punishment in a legal situation. Especially in comparison to if you didn’t follow regulations at all. And even if you did follow regulations, but just forgot to document it, well… they can’t just take your word for it at the end of the day. Having your written compliance documentation available for review in these cases is life-saving. 

Here are a few other important benefits you get when you are able to keep your compliance paperwork together: 

  • Prevents legal investigations.

  • Help to easily update employees as policies and frameworks change.

  • Track your risk compliance history.

  • Helps to identify any possible internal security gaps through regular assessments.

  • Help with reporting, analytics, and evidence collection.

  • Cost saving during audits to avoid hefty penalties.

  • Enhanced collaboration between different organization teams.

Types of Compliance Documentation and Frameworks

Compliance unfortunately is not a “one size fits all” kind of deal. It’d be way easier if it was, but too much would slip through the cracks that way. Once you understand what the law requires when it comes to your company’s compliance, you can find a suitable compliance documentation framework that works for you. Some examples of existing frameworks include:

A document management system (DMS) can save your policies and information all in one place. Creating a procedure which allows you to keep the correct documents and information is key. There are a few different types of compliance documents.

Let’s go over these most common types:

  • Regulatory Compliance Documents: This is a whistleblowing policy. They set procedures for reporting any wrongdoing during the course of an employee’s work.  

  • Industry-Specific Compliance Documents: Any records of conversations relating to trades made by investment firms. In detail, so that you can reconstruct the events leading to that transaction.

  • Internal Compliance Documentation: A code of conduct and ethics. This creates the necessary compliance culture that helps ensure stakeholders follow regulatory requirements.

There are other kinds of documentation to consider when creating your process. Some of which inherently fall under the three overall types I went over above. Operational documents, for example, detail the necessary processes and policies utilized to perform daily operations. These documents specifically cover code of conduct, risk management or incident response plan, human resources documentation, and more. Some other documents include: 

  • Data privacy documents.

  • Technical security documents.

  • Compliance audit documents.

Managing Your Compliance Documents

All these compliance documents are important to consider when organizing your paperwork. Digitizing your process for storing documentation is essential for this reason. Especially in a world where remote work is becoming increasingly common. These documents get stored in a cloud, made available to staff who are both in and out of the office. As I mentioned earlier, utilizing a DMS is a helpful option for storing your compliance information.

Having any paper documents backed up in your DMS is also essential when it comes to handling compliance documentation. In the event that you lose the physical copies, you are then able to simply download them again from the cloud. Having cybersecurity to secure this internal information is another great benefit when using digitalization in your processes.

This is especially true when considering it is difficult to restrict access to certain files when employees need to sift through to find  specific documents. Through digital documents, you can now have better control of restricted access on a document-to-document basis.

Be sure to implement regular reviews and internal audits. This helps to ensure that your processes are up-to-date with today’s regulations. Finally, automate your processes as much as possible to cut down on compliance paperwork as well as human error. 

Challenges of Compliance Documentation Management

While compliance documentation is important, there are some drawbacks. The complexity and legality of regulations makes documenting your process more intricate and tedious in nature. Making sure your employees are up to code with these intricacies takes time and training. 

Gathering and storing your evidence that you are, in fact, compliant is also quite the task. This is especially true if you do not have an automated process.

The time-consuming nature of this kind of documentation stems from things like:

  • Repetitive entries.

  • Managing numerous spreadsheets.

  • Tracking various versions of updates of policies.

  • Dealing with the inherent risk of human errors.

Another challenge comes from being able to keep up with regulatory changes. Maintaining various versions of documents takes (ideally) a dedicated team. As well as regularly updating policies, and introducing new ones.

The Solution: Streamline Compliance Management with an All-in-One GRC Platform

Managing compliance documents becomes easier with the right governance, risk, and compliance (GRC) platform. For example, K2 GRC bring all your compliance efforts into one system, eliminating the need to juggle multiple spreadsheets or track updates manually. Automating these processes saves time and reduces errors.

A GRC platform also makes evidence storage simple. It offers a secure, organized space where you can store and access important documents for audits or reviews. Instead of scrambling to gather evidence, you’ll find everything you need in one place.

Staying on top of regulatory changes also becomes more manageable. These platforms track updates to regulations and help you revise your policies quickly. This ensures your team always uses the most current information.

By reducing repetitive tasks and minimizing human error, a GRC platform lets your team focus on higher-value work, like training and improving policies. Instead of wasting time on manual processes, you can create a strong culture of compliance across your organization.

With a platform like K2 GRC, managing compliance shifts from a frustrating task to an efficient and organized process.

Conclusion

Keeping your company compliant is a fluid process. Making sure that you stay current with new regulations by introducing processes ahead of legislation changes is key. This way, you can prepare. Avoiding any unnecessary legal ramifications. 

Review your compliance documents at least annually. This supports quick and accurate updates to ever-changing regulations and processes. Having your compliance documentation in order should be your number one priority. Developing a clear process helps your employees do their job to their best potential. All while protecting your bottom line from legal ramifications and hefty fines.

It's time to protect your bottom line.