Not only do the regulatory acts for compliance protect investors wealth but also helps the business in running successfully with any potential risk being addressed in a timely and accurate manner. A compliance solution also monitors the effectiveness of various controls applied to mitigate risks.

A compliance solution should essentially contain the following:

• Process definition and management
• Risk and control definition and management
• Exhaustive report generation capabilities for processes, risks and internal controls
• Auditing capabilities with the facility for raising challenges to non compliance 

The Risk Assessment exercise is conducted by a dedicated team (External consultant OR Internal Audit Team). This is a humongous exercise and requires large resources in terms of skilled manpower, and time. To maintain the currency of findings, the exercise needs to be revisited each quarter. The usage of a tool provides a substrate and basic platform where new efforts and incremental differences can be updated. This ensures that the latest version of the Standard Operating Procedures (SOPs) with current risk and attendant controls is made available. 

The mechanism for maintaining currency is done by auditing the Business Processes. Depending upon the criticality of the Business Process and its vulnerability to risks, one can define the audit cycle. This scheduling and monitoring helps the top management to focus efforts towards lapses that have material significance.

However, in India a single person as an independent director is allowed to be a member of multiple boards at the same time. Often it becomes difficult for him to keep track of all the processes within different companies. Therefore, during board meetings his contribution gets limited.

By the usage of the Newgen Tool, complete transparency is created by clearly defining the organization processes, the associated risks in those processes, along with controls that have been put in place to mitigate those risks. This way the responsibility shifts from an individual to the process. 

This provides complete transparency to all directors, at the same time giving comfort to the independent directors to vouch for all the information and contribute significantly. This will enable the organizations using this tool, to easily bring on board the required number of independent directors.

A great deal of the resources would be needed to put all the information, including those of documenting risks and associated controls for all their processes, along with periodic monitoring and tracking.

Also, an organization not using a compliance tool could get hurt badly. Consider the case of Order Execution.

A company receives a very large LOI. It immediately swings into action, making huge investments for executing the order quickly. Some time later, the LOI gets canceled.

• Risk Assessment 
• Process Design 
• Comprehensive Internal Controls 
• Elaborate Process Documentation 
• Periodic Monitoring 
• Process Deviation Tracking 
• Roles & Responsibilities Tracking with timelines