The Compliance Cost Cycle

The Nvolve Group Model for addressing compliance-related costs.

November 15, 2017 in Costs, Compliance

A Holistic View

Traditionally, compliance is seen as an intangible aspect of the business. However, as regulatory requirements have increased in recent years, we see that compliance costs are holistic.

Paper-based and spreadsheet reporting methods are far too inferior at addressing costs at this level.

Before implementing a compliance management solution, companies should conduct a Cost Benefit Analysis (CBA).

Compliance Costs '000

  • Tangible Costs
  • Intangible Costs

Types of Compliance Costs

Tangible

  • Paper usage
  • Printing stations
  • Ink drums & cartridges
  • Physical file storage
  • Consultant fees

Intangible

  • Time – Excel spreadsheet tracking and searching
  • Lost customers & orders
  • Lost new business opportunities
  • Regulatory costs & fines
 
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Case Studies by Sector

Check out the case studies section by each sector and see how other companies are reducing compliance costs.

Rethinking Tangible and Intangible

The Nvolve Model to address compliance costs is a unique concept in relation heavy related industries such as Manufacturing, Pharmaceutical and Temporary Recruitment, however this idea is not new within the banking sector.

By applying some of these cost principles, we can see that tangible and intangible costs interact in a dynamic way.

An article related to rethinking the the role of intangibles shows that both tangible and intangible costs have an integrated type of behaviour in the way they respond to environmental changes and how different departments analyse the same costs in different ways.

For compliance managers, this is key, as the compliance activity they control is multi-faceted and may not always be as direct as planned for.

Simplifying the Process

It’s easy to see that the Compliance Cost Cycle is rather complex and somewhat uninviting.

The Nvolve Model to address the compliance cost cycle is to bring a sense of simplicity to the table, where we focus on removing paper, removing Excel spreadsheets to achieve an overall reduction in compliance costs.

Looking at costs holistically, companies are able to address costs that spiral out-of-control by analysing how they currently approach compliance.

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Learn more about Nvolve’s approach to reducing costs!

Further Reading

Featured Case Study

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Friends First are a life assurance company who use a customised version of Nvolve’s Technology…

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Further Case Studies

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