At most organisations, the growing complexity of the regulatory landscape means that compliance costs increase proportionally. A new regulatory requirement almost always translates into new business rules and controls, which makes organisations less flexible. During this process, little attention is paid to the understanding and attitudes towards risk of the employees, and whether they (strive to) live up to these values.
Most organisations think that nothing can go wrong as long as employees follow strict rules and procedures. However, the implication of this scenario is that compliance costs continue to grow and the flexibility of the organisation decreases, making it harder to adapt to the rapidly changing business environment. If corporate values are embedded in all levels of an organisation, it runs a lower risk of being distracted by non-compliance issues, can focus on conducting its core business and can refer to its corporate values to the stakeholders with confidence and by that strengthen its reputation. In that sense, corporate values are an important strategic enabler.
Paying attention to conduct can be a key differentiator for organisations. Bringing compliance responsibilities back to the business and helping employees to consistently make appropriate risk-based decisions will lower compliance costs and increase the flexibility of your organisation. By actively promoting the desired culture and values of your organisation, your employees will reflect the attitude and beliefs you desire.
