Key Components of a Compliance Framework – The Obligations Register
Compliance is an outcome of conforming to a rule. That rule may arise from an external source such as a law or regulation, or an internal source such as a policy, code or control. Compliance with these two main sources gives rise to external and internal compliance.
The issue for an organisation is how to conform to these rules? This is the key objective of a compliance function. This blog provides an overview of one of the elements that need to be considered when building an optimal compliance function.
Understanding what the relevant rules are – plain English Obligation Registers
Before we can consider conforming to a rule, we need to comprehend what the rules are and what they mean. For external compliance, this necessitates having an understanding of relevant laws and regulations and how they apply to our organisation. This is typically achieved through an Obligations Register that contains information such as:
- Act or regulation
- Sections of relevant legislation
- Penalties for non-compliance
- Frequency that obligation occurs
- Obligation owners and interested parties
- Risk rating
- Compliance status