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In terms of control and compliance monitoring, regulatory systems are constantly expanding and tightening. A trend that emerged following the financial crisis of 2008 and which is confirmed and reinforced during the context of the current health crisis. The issue of compliance has become major for companies because it involves questioning their responsibility and impacting their image and this has contributed a lot to the growth of compliance outsourcing companies.
Aware of the importance of control and compliance monitoring, companies are more than ever trying to organize the compliance function by opting either for compliance outsourcing services or doing this complex work in-house. Outsourcing or in-house compliance monitoring in companies has advantages and disadvantages. Let’s do a check-in.
WhyHY Outsource The Compliance Function
OUTSOURCE TO COVER A COMPLEX DEVICE
Ensuring compliance control and its follow-up implies mastering various and complex legal matters such as in particular:
- The fight against corruption,
- Corporate social responsibility (CSR)
- Economic dependence
- Competition law etc.
Each of these matters is a complex device representing various legal issues that must be analyzed and supervised by companies.
Checking and monitoring supplier compliance is therefore meticulous work that requires knowing how to juggle national, international, and European regulations to manage compliance effectively.
The compliance function, therefore, has a high degree of requirement which requires a solid and constantly updated level of expertise, which is not always possible with a single compliance manager in a company.
Outsourcing is a major asset for the company, which can combine its skills and knowledge in terms of compliance with a specialized external service provider.
OUTSOURCE TO CONTROL THE COMPANY’S BUDGET
Controlling the budget is a strong argument because the outsourcing of compliance monitoring allows companies to use an external service provider by determining its duration of intervention.
Indeed, having recourse to outsourcing makes it possible to respond to ad hoc problems relating to compliance without necessarily committing financially over a long period.
At the start of their activity, young companies, faced with the challenges of compliance, often have an interest in resorting to outsourcing to meet compliance obligations without being forced to recruit a compliance specialist for whom they cannot always assume the responsibilities and costs.
The company can adapt its costs and gain flexibility. The budget is, therefore, better controlled overall.
OUTSOURCE TO SET UP A QUALITY CONTROL AND MONITORING METHOD
Outsourcing also presents the major advantage of supervising the compliance function through quality expertise.
The complexity of compliance regulations can only be understood by highly specialized external service providers. External service providers are aware of effective control methods for monitoring compliance and therefore provide their clients with the benefit of expertise that has already been proven. The latter’s margin of error is therefore very small. If you are also new to the topic of compliance, then you should consult compliance outsourcing services to avoid situations like being charged for not following certain rules and regulations that even you might have not known.