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Corporate Compliance Programs: Best Practices in Singapore
As businesses navigate the complex regulatory landscape of Singapore, a robust corporate compliance program has become an essential component of any organization’s risk management strategy.
What is a Corporate Compliance Program?
A corporate compliance program is a formal program that outlines an organization’s policies, procedures, and actions to prevent and detect violations of laws and regulations. It goes beyond a code of conduct and integrates measures to address specific risks associated with the organization.
Benefits of a Strong Compliance Program
- Reduced risk of regulatory non-compliance
- Improved operational efficiency
- Enhanced reputation and brand value
- Increased shareholder confidence
10 Considerations for an Effective Corporate Compliance Program
To ensure the effectiveness of a corporate compliance program in Singapore, consider the following ten key elements:
1. Understand the Scope
- Identify all regulatory and internal compliance needs
- Ensure that organizational responsibilities are properly aligned
2. Gather Internal and External Intelligence
- Tap into the collective intelligence of your company by soliciting thoughts from the Board, management, and employees
3. Define Objectives
- Define objectives (things to accomplish in order to achieve a goal) from an enterprise and business unit standpoints
4. Conduct a Risk Assessment
- Identify risks, probabilities, and significance in terms of both qualitative and quantitative measures
5. Align Controls
- Policies, procedures, and actions within a process should be in place to address the risks to best achieve objectives
6. Verify Buy-in and Understandability
- Everyone needs to know their roles and understand the “why” and “how” of the compliance program
7. Test Cultural Support
- Determine if the cultures at headquarters and all relevant business units are supportive of a strong corporate compliance program
8. Assess Ongoing Compliance
- Build monitoring, internal audit, and special reviews into the compliance program to help ensure that controls are operating effectively
9. Train, Educate, and Communicate
- Deliver periodic targeted training and share compliance information with the business units, global functions, external partners, customers, vendors, and other stakeholder groups
10. Measure Results and Report to Board
- Develop a reporting dashboard to keep management groups and the Board aware of compliance measures, trends, and developments
Implementing a Corporate Compliance Program in Singapore
In Singapore, businesses are subject to various regulations and laws, including:
- Companies Act (Cap. 50)
- Securities and Futures Act (Cap. 289)
- Financial Services Regulations (Cap. 130A)
To ensure compliance with these regulations, a corporate compliance program should be designed to address specific risks associated with the organization.
Conclusion
A robust corporate compliance program is essential for any business operating in Singapore to mitigate risk, improve operational efficiency, enhance reputation and brand value, and increase shareholder confidence. By considering the ten key elements outlined in this article, businesses can develop an effective corporate compliance program that meets the regulatory requirements of Singapore and ensures long-term sustainability.
References
- United States Sentencing Commission. (2009). Effective Compliance and Ethics Program.
- Governance Issues Newsletter. (2009). Volume 2009, Number 4.
- Companies Act (Cap. 50)
- Securities and Futures Act (Cap. 289)
- Financial Services Regulations (Cap. 130A)