What is a Compliance Committee? (Overview, Roles, and Responsibilities)

A compliance committee’s responsibilities include:

Policy Development

Your organization needs a compliance program that includes internal policies and procedures that help all employees comply with the rules. This should also include guidelines for reputation management. 

Your compliance committee is ultimately responsible for developing these policies, which range from rules to ensure compliance with laws and regulations to best practices when handling employee data. These policies should be outlined in a document, and the committee is responsible for oversight and ensuring adherence.

Risk Assessment

Compliance failures carry with them a number of risks. These include, but are not limited to:

• Legal fines and penalties
• Lawsuits from customers and/or employees
• Reputational damage
• Customer and/or employee mistrust
• Downtime and/or injury to employees resulting from failure to comply with safety regulations
• Loss of productivity
• Quality assurance failures leading to costly product recalls
  
  

Not all these risks affect every company, but every company has compliance risks. The committee is responsible for determining which risks apply to their business, and assessing the best way to mitigate them at the strategic and executive levels. 

Monitoring and Reporting

Your compliance committee has ultimate responsibility for your compliance program and ensuring that it continues to operate correctly. This requires monitoring and adapting to regulatory changes. 

In the case of compliance breaches, the committee oversees the reporting process and investigates to determine the root cause and identify corrective actions to prevent future occurrences. The committee is also responsible for preparing and submitting mandated reports to regulatory authorities. 

Training and Education

The compliance committee plays a crucial role in education and training within an organization. Their responsibilities in this area involve designing and implementing comprehensive compliance training programs for employees and relevant stakeholders. Training topics include the latest regulatory requirements, internal policies, and ethical standards that govern the organization’s operations.

Continued Improvement

Last but not least, the committee is responsible for continuing to improve compliance techniques. The committee should meet regularly to take reports, view data, and discuss trends. Additionally, they need to be made aware of regulatory changes or new standards that might affect how you manage compliance.