Financial Crime World

Building a Stronger Compliance Program: A Multiyear Approach

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Companies Must Plan Ahead to Mitigate Risks and Ensure Training Effectiveness

Introduction

As the global workforce continues to evolve, companies must adapt their compliance training programs to stay ahead of the curve. With millennials expected to represent 50% of the workforce by 2020, companies must invest in a multiyear training program to deliver results and mitigate risks effectively.

The Importance of a Multiyear Budget

A defined multiyear budget is critical for careful planning and good use of dollars. Without one, programs can become inefficient and ineffective. It’s essential to identify and prioritize risks facing the organization and allocate resources accordingly.

Conducting a Thorough Risk Assessment

To achieve this, companies must first conduct a thorough risk assessment, identifying key E&C risks and prioritizing them based on likelihood and potential impact. This includes:

  • Researching regulations and enforcement trends
  • Reviewing benchmarking reports
  • Meeting with internal subject-matter experts
  • Understanding legal obligations related to training

Creating an Effective Multiyear Education Plan

Once risks are identified and prioritized, companies can create a multiyear training program that addresses the most critical topics first. The key elements of an effective multiyear education plan include:

  • Identifying and prioritizing risks and learning objectives
  • Auditing the audience that needs to be educated about each topic
  • Determining the timing of communications to optimize limited training hours
  • Establishing frequency for deploying training on a particular topic, guided by the organization’s risk tolerance level
  • Balancing depth and duration against resource limitations

The Benefits of a Multiyear Approach

By taking a multiyear approach, companies can ensure that their compliance training programs are effective in mitigating risks and promoting a culture of compliance.

  • Effective compliance training is not a one-and-done event. It requires ongoing investment and attention to stay ahead of emerging risks and changing regulations.
  • A multiyear program allows for continuous improvement and adaptation to changing regulatory environments.

Conclusion

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About the Author

Sarah Johnson is a compliance expert with NAVEX, providing guidance and support to organizations seeking to improve their E&C programs. With over 10 years of experience in compliance training and risk management, she has worked with clients across various industries to develop effective multiyear training plans.