How To Conduct An Effective Compliance Gap Analysis?
When you are unsure about whether your business is complying completely with the most required needs of the government and industry, you need to conduct a gap analysis. This investigation will measure your company’s existing procedures and policies against the best practices, as well as against applicable local, state, and federal regulations. The results you achieve from this investigation will indicate the gaps or deficiencies in your organization’s compliance program. These may include incomplete data security requirements, potential regulatory violations, etc. By identifying these deficiencies, you will be able to take remedial actions to solve them and alleviate risks.
The goal of a gap analysis is to reveal the weaknesses in compliance programs that apply to your company. It will show you the difference between where your compliance program currently stands, and where it should be actually standing as per the current regulatory requirements. The differences you find between these two are the deficiencies you need to work upon. The objective of a gap analysis is to address situations where more information might be required to ensure remedial actions that can bring procedures into full compliance.
Here are the four basic steps you need to follow to conduct an effective compliance gap analysis.
Step 1 – Building a compliance program
Building an effective compliance program starts with appointing a compliance officer or committee who can monitor applicable legal and regulatory business requirements. The appointed personnel will instigate corrective actions, and will build up effective communication with employees by attending to concerns and solving queries. But, along with all this, a compliance gap analysis is important to bring hidden issues to the forefront. This is where hiring third party business consultants who have complete expertise in compliance is the best solution. Hiring a professional Statutory Government Factory Approval consultant in Hosur like iDeal HR Service can provide the basis for gap analysis and ensure a successful compliance program.
Step 2 – Identifying risk
The next step is to identify the risks involved. This can be done by reviewing various elements like audit reports, safety manuals, training requirements, facility inspections, information security logs, and applicable laws and regulations. Analysis of all kinds of risks like those associated with third parties or those that are characteristic to the industry is also very important.
Step 3 – Bridging the gap
Once you have identified the risks involved, it is time to work upon diminishing those risks and their effects. For this, you need to list out all the possible solutions that can be implemented to fill the gap between your current state and the state where your business should currently be standing at. These solutions should be specific, and should be put in active and compelling terms. Also, make sure to prioritize your objectives on the list.
Step 4 – Implementing additional controls
You must apply additional controls and procedures to comply with various government rules, regulations, and standards. For example, you can safeguard the confidentiality of credit card information, or you can prevent unauthorized access to financial data to protect data privacy and integrity. Any such additional controls can help you create preventative measures that can ease certain other risks involved.