When people hear the phrase, “Operational Compliance” they often think of it in the same way as “Operational Risk” - a siloed function to audit conformance to legal rules that sits apart and not embedded within the business.
However, this defines “Procedural Compliance” which is based on a traditional and reactive model for compliance.
Instead, “Operational Compliance”, which is based on a holistic and proactive model, defines a state of operability when all essential compliance functions, behaviours, and interactions exist and perform at levels necessary to create the outcomes of compliance.
These outcomes are associated with keeping promises connected with: safety, security, sustainability, environmental, quality, regulatory adherence, corporate ethics, responsible AI, and ultimately stakeholder trust.
“Operational Compliance” is governed by two fundamental organizational obligations:
(1) Stay between the lines, and
(2) Stay ahead of risk.
These can only be advanced when compliance is integral to the value chain and when obligations are operationalized which are essential aspects of "Operational Compliance."
Elevate your compliance by taking a step away from procedural towards Operational Compliance - a more effective way to do compliance.
Authors Note (Raimund Laqua):