Compliance common term definitions

Perhaps these definitions will help you with navigating the whole Compliance landscape and further your quest to be Compliant in your operation.

Here is a list of common catch phrases that are used in Compliance:

Definition of a Policy:

  • Policy sets the direction of the organization, they are an integral part of the big organization which helps in its smooth functioning
  • They provide some common parameters over which the management can take a consistent decision over a long period
  • Policies are general statement that sets out the limits within which decisions are taken by the managers and thus assures consistent performance
  • Policies affect the internal structure and routine activities of the entity which requires periodic decision making

Definition of a Process:

  • A process typically operates at a higher level, and possibly across many functions
  • A process may contain one or more procedures and may refer to procedures from other processes
  • Work Instructions provide even more detail for a procedure
  • Processes, procedures, and work instructions can expand like an organization chart

Definition of a Standard:

  • Standard is a thorough statement of what members of an organization need to do to adhere to a policy
  • This can be in the form of system-specific or procedural-specific requirements
  • These requirements are to be followed by everyone and must be followed exactly

Definition of Best Practices:

  • Best practices are a set of guideline, ethics or ideas that represent the most efficient or prudent course of action
  • Best practices are often set forth by management but can be dictated by an authority such as a governing body
  • Best practices generally dictate the recommended course of action

Definition of a Guideline:

  • Guideline is literally a group of system specific or procedural specific recommendations for best practice
  • Guidelines are recommended best practices that aim to set standards in the future

Definition of a Procedure:

  • Simply put, procedures are the systems that are set in place to meet the established standards of the organization
  • These are specific internal processes. They ensure operational efficiency, minimize fraud potential and define the roles and responsibilities of team members
  • These should have a routine schedule as to keep efficiency in check and to provide a living record of productivity
  • Procedures are the sequential steps which direct the people for any activity
  • The idea of procedure has been developed to avoid the overlapping of actions and haphazard manner of performing activities. This saves a lot of time and a proper series of actions is framed, which will reduce chaos

Rules can be described as the guidelines or instructions of doing something correctly.

Regulations refer to the directives or statute enforced by law.

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  • This is great Joyce! You have to define things first before you can implement them. 

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      • Joyce Guest
      • Senior Consultant
      • Joyce_Guest
      • 1 yr ago
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      Dennis Craig  Absolutely! Understanding what you want and how you want it done is half the battle!

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