Enterprise Resource Planning Helps Business with Compliance
Electronic payments, digital currencies and virtual cards are more prevalent in business than ever. While these electronic payment systems are making work and life easier, they are not without their challenges. Corporations small and large will need to be poised to ensure compliance with usage, as well as security and privacy, as they continue using these payment systems and automation. Like most complex systems, business is turning to technology to help with the planning and compliance — the most common answer is Enterprise Resource Planning (ERP).
By definition, Enterprise Resource Planning (ERP) is the integrated management of core business processes, often in real-time and mediated by software and technology.
ERP is automated software most commonly used to collect, store, manage and interpret data within all business components and divisions. It provides a holistic perspective of all business activity in real time, which is critical in managing corporate payment solutions, data collection, and compliance. ERP systems can facilitate information flow between all of these business functions internally as well as externally, enabling organizations to track and manage vendors, partners and other external stakeholder with transparency and detail. While enhancing business operational efficiencies, these systems are also important for mitigating human error — errors that could be detrimental in meeting compliance in any industry.
As most of corporate America has turned to the cloud for managing and storing resources, ERP systems software also has. Web based ERP software provides real-time access to all facets of business including human resources, strategic partners, vendors/suppliers and even customers. These systems are used for both internal and external access, making it more effective for collaboration and compliance as needed.
Web based ERP software provides real-time access to all facets of business including human resources, strategic partners, vendors/suppliers and even customer.ERP was once primarily used for e-commerce, but these systems now include more functions and roles than ever before — account management, clientrelationships, transparency, global economic resources and standardization and compliance. Legal and regulatory compliance can often times cross international boundaries, which is why a larger integrated system is key. ERP systems take into account a global economy and can deliver a more efficient flow of information across all borders.
The financial sector is affected the most by compliance and legal regulations, and they are being held to extremely rigorous standards. The financial services industry has a lot to be accountable for, not the least of which is fraud and anti-money laundering (at home and abroad). They also have standards to follow for electronic payment systems, data protection and transfer as well as accurate records keeping for all of it. With the right controls in place and a robust ERP system, these institutions are much more confident in meeting compliance objectives than they were even five years ago. A healthy and secure financial ecosystem can only be run by an equally healthy ERP network. Integrated networks can streamline the process and simplify the transactions while the system can see those transactions, simultaneously maintaining the integrity of the data through vigilant data collection, data classification, data encryption and authentication of users. But as you can imagine, it’s easier said than done. Regulatory mandates for the financial sector come quickly and often, which makes it even more challenging to stay compliant.
It is critical to stay vigilant and to make sure everyone from the corporate executives and board of directors to the strategic partners and the internal teams, understand the importance of compliance, and what it all means to them.
Whether through regular meetings or weekly email blasts, keep everyone who needs to know about regulatory changes up to date.
Richard White, division director of Robert Half Management Resources in San Francisco, goes on to outline the most effective things financial leaders can do to stay on top of compliance.
- Educate staff. Whether through regular meetings or weekly email blasts, keep everyone who needs to know about regulatory changes up to date. Provide regulatory compliance training, and make sure employees also have access to resources such as industry publications and webinars on relevant topics.
- Invest in expertise. This includes hiring compliance officers and internal auditors. Engaging specialized consultants with deep expertise in regulatory matters can also help organizations to manage compliance initiatives more effectively.
- Learn from others. Keep an eye on competitors: Adopt their best practices and avoid repeating their blunders.
It is clear that managing resources, financials and data is no more important than managing risk. Noncompliance could very well be the biggest risk a company could face next to fraud or data breach. Whether your company is an enterprise corporation or an independent business, communication is key. How a company collects, manages and interprets data might be the corner stone of their success. A robust ERP system can facilitate more than corporate payment solutions, inventory and production capacity. Your ERP could keep you integrated, efficient, informed and compliant.