When regulators talk about a “culture of compliance,” they’re emphasizing the importance of a mindset that prioritizes adherence to laws, regulations, and ethical standards throughout the organization. It’s about creating an environment where compliance is a core value embedded in the firm’s operations and decision-making processes. It’s a vibe—one that’s hard to prove.
We understand the general elements of a culture of compliance—leadership buy-in, tone at the top, incentivizing ethical behavior, regular employee training, and clear communication of compliance priorities. But here’s the catch: regulators aren’t satisfied with just feeling the vibe; they need to see it. In fact, showing that you have a culture of compliance—through tangible, systematic actions—has become an essential part of regulatory scrutiny. How do you prove your firm is committed to compliance, beyond a good “vibe” and a nice policy statement?
The answer is technology—specifically, compliance management technology. This isn’t just about automating tasks or making workflows more efficient (though it does that too). It’s about providing evidence that compliance is integrated into your day-to-day business operations, that it’s resourced properly, and that it’s continuously monitored and improved. As with everything in compliance, showing evidence of your culture of compliance is just as important as having one in the first place.
The Challenge: Proving a “Vibe”
When regulators assess a firm’s culture of compliance, they’re essentially asking, “How do we know this is more than just a set of good intentions and a paper-based program?” They’re looking for signs that compliance isn’t just a slogan or a box to check but a living part of the organization. This goes beyond leadership’s commitment to compliance policies—it means ensuring that all levels of the organization have the tools, training, and systems in place to carry out those policies effectively.
The challenge, however, is that culture can be difficult to quantify—you can’t measure it in a spreadsheet or a report. You can describe it, you can assess it, but it remains intangible until you attach it to actions and results.
Technology as the Evidence of Culture
This is where compliance management platforms like Skematic come in. Technology provides the tangible evidence that supports a firm’s culture of compliance. Automated workflows, task management systems, and reporting tools are not just about making compliance tasks easier or more efficient—they’re about demonstrating commitment to compliance in a structured, verifiable way.
For example, Skematic allows firms to automate compliance tasks like management of policies and procedures, issue and case management, and reporting. These processes are continuously monitored, and audit trails are automatically generated to provide transparent documentation of each step. The solution will also notify teams of upcoming deadlines, regulatory changes, or actions that need to be reviewed. With Skematic, task management is automated, ensuring that everyone in the organization knows what they need to do, when they need to do it, and why it’s important for compliance.
Proactive, Not Reactive
A strong culture of compliance isn’t just about responding to compliance issues when they arise; it’s about proactively identifying and mitigating risks before they become problems. Technology makes this proactive approach possible by enabling firms to anticipate and address compliance requirements in real time, rather than scrambling to react after the fact.
Resource Allocation and Technology as Proof
Regulators often want to see that a firm is allocating appropriate resources to its compliance function. This means having dedicated personnel, yes, but also ensuring that the right tools are in place to support the team. Technology provides a clear and verifiable way to show that compliance isn’t just a priority in theory but is being resourced appropriately.
Continuous Improvement
A true culture of compliance isn’t static—it’s a continuous effort to evolve and improve. Technology allows firms to gather insights and make data-driven improvements to their compliance processes. For example, by analyzing trends in compliance issues and emerging risks, firms can identify areas for improvement and adjust their processes accordingly. This continuous adaptation helps maintain the integrity of the culture over time.
Conclusion
A culture of compliance is more than just a vibe—it’s a proactive, living part of a firm’s operations that must be continually demonstrated and supported. Regulators expect firms to provide evidence that their culture of compliance is actively managed and resourced. This is where technology becomes invaluable. Platforms like Skematic make it possible to prove that compliance is not only part of your company’s ethos but is actively embedded in the daily operations, workflows, and decision-making processes.
By using compliance management tools, firms can evidence their commitment to compliance, track progress, and continuously improve their processes. In today’s regulatory environment, a strong culture of compliance can no longer be just a vibe—it has to be backed by tangible, actionable evidence. With the right technology, firms can do just that.