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Risks are an inherent part of both life and business. When managed proactively and with preparedness, they can unlock numerous opportunities. While many companies scramble to meet compliance requirements during audit periods, only to falter afterward, others adopt a more holistic approach by fostering a compliance culture.

Compliance management is often mistaken for merely ticking boxes on a checklist or creating flashy presentations for the board. In reality, it requires a deeper commitment to instill a compliance culture that motivates every stakeholder to align with the organization’s risk objectives. As we manage existing risks, we must also stay vigilant about emerging risks in today’s dynamic world and design processes to address them.

Building a Compliance Culture
Organizations must integrate compliance as a core component of their culture. Contrary to the belief that it is an expense, a strong compliance culture has long-lasting positive impacts on business success. Let’s analyze why:

Interconnected World: In our wired world, any compromise on core values can have far-reaching consequences, sending a signal that is nearly impossible to undo.
Leadership Commitment: Strong commitment from the top leads to higher employee satisfaction, improved productivity, and better employee retention.
Risk Mitigation and Cost Control: Compliance helps in risk mitigation and cost control, maintaining a firm’s reputation, preserving assets, and winning regulatory benefits.
Trust and Reputation: Trust enhances reputation and brand perception, leading to better economic performance and client trust.
Safety Records: Improved safety records reduce both costs and risks.
The 5 Pillars of Enterprise Compliance Culture
1. Commitment from the Top
Leadership commitment is crucial for driving behavioral changes. Executives must define and own the risk management process, emphasize strict adherence to compliance during leadership meetings, and commit personal time for functional reviews and process enhancements. The tolerance levels should be set at the top and adhered to in spirit.

Employees follow the example set by their leaders. If managers prioritize compliance, employees are more likely to do the same. Conversely, if managers neglect compliance, employees will too.

2. Common Understanding
Compliance must be understood at all levels of the organization. While the responsibility for compliance often falls on lower-level employees, the impact of non-compliance affects the top. Everyone should educate themselves through newsletters, seminars, online searches, and legal opinions. However, differing sources of information can lead to misunderstandings. It’s essential that everyone follows the same guidelines to reach the same destination.

3. Strong Review Mechanism
Implementing a robust review mechanism is essential to identify mistakes and take corrective actions promptly. This serves as an additional layer of defense. Key elements of a strong review mechanism include:

Preplanned review calendars
Clear communication of expectations
Ensuring reviews happen as planned
Documenting and following up on reviews
4. Incentives for Top Performers
One successful example of fostering a compliance culture comes from a pharmaceutical company that included compliance management in their team’s annual KPIs. They also started recognizing compliance champions monthly, rewarding them with cash prizes and certificates. This approach significantly increased compliance adherence within months.

5. Invest in Compliance Management Software
In today’s volatile, uncertain, complex, and ambiguous (VUCA) world, nothing is predictable. The COVID-19 pandemic has exacerbated vulnerabilities at every level, increasing employee movements, attrition rates, and regulatory changes at an unprecedented rate.

Investing in compliance management software can help systematically stack processes and knowledge for future reference. With advancements in technology, compliance solutions are now available on a Software as a Service (SaaS) model, making them affordable for startups and mid-sized companies. Implementing an effective compliance management system is no longer a luxury but a necessity.

Conclusion
Building a robust compliance culture requires a comprehensive approach that integrates leadership commitment, common understanding, strong review mechanisms, incentives, and effective compliance management software. By doing so, organizations can mitigate risks, enhance their reputation, and achieve better overall performance.

This is one of the first mechanical engineering innovations on earth. The wheel and axle. Just think about how life would have been without the wheel. We will not have bikes, cars, trucks, trains, or even airplanes.

Without this innovation, we would not have this world that we know and love today. No way to get from point A to point B without just walking. An innovation that might be an accident, but that is our lifesaver today. From a stone wheel to a wooden wheel to the wheels that we know and use today.

Airplanes making the world smaller

Airplanes, going overseas to other countries for holidays. Something that we are doing on a regular basis. Doing without thinking twice. Not thinking that this is because of one person that was obsessed with flying and going to other countries and flying like a bird.

This is a huge mechanical engineering innovation that is thanks to many other, smaller innovations. Like the engine, the electronics, and other things that engineers have invented. You can also think about how the airplane has developed over the years. How to save it becomes to fly and how to modernize the aircraft has become. Hundred years ago, we couldn’t visit another country and fight aircraft was all we know. Today this isn’t strange, and we can visit anyone, anyplace in the world.

Electronics developing

Another great mechanical engineer invention is electronics. This is another great example of how inventions have changed our world, and how electronics are changing as technology is changing. With each new invention, the electronics are changing, improving, and getting better and better.

From radios to MP3 players, now MP5 players, and music players that are on your phone. Electronics that we didn’t know would be invented a couple of years back, are now something that we can’t live without today. Another great example of electronics that develop and that changed over the years is the television. From the first television that was a black and white television, to the smart televisions today that are full HD and that are flatscreens, huge and with really great features. But, wasn’t it for the first television that was invented, we wouldn’t have the smart television today.

Computers taking over the world

Thinking back to years ago, there were people that are saying that computers are going to take over the world. That computers are going to do everything a person can do. We think that it wasn’t going to happen. But, just because of the first mechanical engineer invention of the first computer, this did happen, and most companies are making use of computers today. Maybe not the robots that many have thought are going to happen, but computers that are working in manufacturing companies, managing cars and even make sure that traffic is running smoothly.

Mechanical engineering inventions that have changed our lives forever. Things that we don’t even consider or think twice anymore. But a few years back, these things were just a dream, an invention in the making. Today it is improving and just getting better and better.

CR Asia is a leading industrial maintenance and shutdowns specialist, providing a comprehensive range of services to the oil, gas, chemical, refining and power industries, including mechanical services, mechanical engineering services, heat exchanger maintenance and more.