A compliance regulation refers to the management function which ensures any organization adheres to the applicable rules and guidance which apply when conducting any mission or operation. In a practical definition, this could mean navigating through complicated web of laws, regulations or procedures.
These compliance regulations ensure the establishment of governance in the way any organization utilizes the resources given to it, so that all operations are guided by strict policies and standards for efficient practices to be achieved. To comply with regulations is not just a regulatory issue but rather a central operational function.
To ensure that every organization is truly compliant, compliance must be injected deep down in its very structure. Just the way any organization needs a wide enterprise management structure, compliance also needs a framework in order to translate its mission and regulatory issues to real solutions (Gregory, 2005, p.56)
Regulatory compliance is not a one time event, it is a continuous requirement throughout any organization’s life cycle. In order to solve any regulatory compliance challenges in an organization, there should be a prioritized approach to address the needs which can be sustained over time in order to bring yields and profit to an organization.
If any organization is proactive, consistent and comprehensive in its regulatory compliance efforts, it not only meets its requirements and profits but it also becomes effective in its operations. Regulatory compliance performance in any organization depends less on level of effort and investment than on implementation of the best practices and standard regulatory compliance architecture.
Compliance regulations therefore control the profitability of an organization by creating a better and growing organization and better understanding of compliance requirements and how they are integrated into organization process systems that are people ready and designated for agility. Therefore, the efficiency and functionality brought out by compliance regulations gives an organization a comparative advantage which implies increased levels of profits (Gregory, 2005, p.81).
Gregory Anne (2005) Strategic Management. Role of Rules, Procedures and Regulation to Corporations. London, Routledge, pp.56, 81