In spite of all the attempts to reduce regulatory pressure it seems that the process of regulation stagnates. The ever growing amount of rules is almost impossible to implement. Companies are confronted with numereous regulations which they can hardly comprehend. Enforcers are faced with dilemmas how to control compliance. Political incident reflexes lead to even more regulations.
Therefore it is time to evaluate the way we regulate and look at new ways to solve the problems. After all, regulations are tools and not objectives in itself.
System based supervision
System based supervision (SBS) is based on the self regulative capabilities of regulated companies. The more regulated companies have effectively assured risk management and compliance in their own organisation, the more the public supervisor can shift its approach to a meta level. Part of SBS is that the public supervisor not only assesses the level of compliance, but also the level of compliance assurance. In other words, the supervisor assesses the compliance management system of the company including physical samples of compliance.
When companies assure regulatory compliance by means of a continuous cycle of plan, do, check and act we, call this compliance management. Compliance management requires a proactive attitude of the regulated company towards self control and risk management against legal requirements and taking action if there are (potential) non-conformities.
Many bigger organisations already apply management systems which can serve as a good foundation for an effective compliance management system.
The public enforcers may anticipate compliance management by means of system based supervision.