How to Implement ISO 19600? A Comprehensive Guide

When it comes to corporate governance and regulatory compliance, international businesses are always developing new strategies to keep ahead of the competition. One such standard that has gained a lot of attention is ISO 19600, which offers a approach to managing compliance.

Businesses can utilize this international standard as a valuable resource for developing, implementing, and enhancing their compliance management systems.

If you want to improve your company’s governance structure or establish stakeholder trust through strict compliance procedures, having a strong grasp of ISO 19600 can be incredibly beneficial.

This guide will help you through the challenges of compliance and the process of implementing ISO 19600 in your company. I will go through in full all the important aspects, benefits and practical steps.

ISO 19600 is an excellent resource to learn how to set up a long-term compliance operating plan that will last. It only has four steps: plan, implement, review, and revisit. This gives everyone the freedom to make the compliance standard fit their own needs.

What is ISO 19600?

The International Organization for Standardization (ISO) has produced a set of standards called ISO 19600:2014 to help businesses build a solid CMS (Compliance Management Systems). It creates a systematic way to check if a company is following the rules and encourages a culture based on honesty and integrity.

Overview of ISO 19600 Standards

The ISO 19600 standards are guidelines that companies can follow to help them manage compliance risks in a good way. They are not certifications. They stress a flexible and scalable approach that means the standard can be used by any company, no matter what size, type, or industry it is in. These standards encourage people to be responsible about following the rules and set up ways to keep getting better.

History and Origins of ISO 19600

In 2012, the Australian government proposed that, using AS 8306 as a foundation, they begin work on an ISO standard for compliance programs.

The ISO members agreed with this approach and formed a Project Committee (PC) to create the standard. Australian standards body SAI provides the secretariat and ISO/PC 271 Compliance Management is chaired by Australasian Compliance Institute president Martin Tolar. Following two meetings, the ISO Committee put out the “Compliance management systems -Guidelines” Draft International Standard ISO 19600 for voting and comments.

Key Components of ISO 19600

a) Compliance Management System (CMS)

A Compliance Management System (CMS) based on ISO 19600 takes a thorough approach to embedding compliance within an organization’s culture, everyday operations, and practices. Its objectives are to recognize, control, manage, and reduce compliance risks.

The CMS offers a streamlined procedure for fulfilling legal requirements and connects compliance responsibilities to the organization’s strategic objectives.

b) Risk Assessment and Management

The standard requires organizations to conduct a systematic assessment of compliance risks. This involves identifying potential risks, evaluating their significance and probability, and prioritizing actions to address them effectively.

c) Organizational Roles and Responsibilities

Clearly defined roles and duties within the organization are necessary for a successful implementation of ISO 19600. Senior management should show their commitment through leadership and resource allocation, and governance structures should support compliance efforts.

To ensure that all employees are aware of their responsibilities in upholding compliance standards, it is necessary to implement training and awareness initiatives.

Benefits of ISO 19600 Compliance

a) Improved Corporate Governance

By incorporating principles of ethics into business practices, ISO 19600 promotes strong corporate governance. Organizations are better prepared to react to changes in regulations and less likely to experience non-compliance situations that could lead to fines or damage to their reputation when they follow this methodical strategy.

b) Better Control of Risks

Organizations can improve their risk management capabilities by methodically identifying and managing compliance concerns. By taking a proactive approach, we can reduce the likelihood of any interruptions caused by non-compliance and keep operations running smoothly even when regulations change.

c) Increased Stakeholder Confidence

If you can prove that you comply to ISO 19600 standards, all stakeholders—consumers, investors, regulators, and employees—will have more trust in your company. A company’s reputation with stakeholders and the general public can be enhanced by upholding a high degree of compliance, which is a sign of responsible management practices.

Steps to Implement ISO 19600 in Your Organization

a) Initial Assessment and Gap Analysis

First, you should do an initial assessment to determine the existing compliance level. Perform a gap analysis by comparing current procedures with ISO 19600 guidelines. Determine what has to be improved or fixed so that you can satisfy the standard’s requirements.

b) Developing a Compliance Program

Once the gaps have been identified, create a thorough compliance program that addresses the unique requirements and risks faced by your business. Such a program need to have well defined rules and processes that comply to ISO 19600 standards.

Risk assessment, education and awareness campaigns, and a robust record-keeping and reporting mechanism should be the program’s major components. Ensure that everyone is aware of their responsibilities and that upper-level management supports the compliance program.

c) Monitoring and Continuous Improvement

The final phase is to ensure that your compliance program is continuously monitored and improved. Audits and reviews should be conducted often to determine how best to implement compliance measures and assess their effectiveness.

To monitor development and ensure accountability, set up reporting standards and performance metrics. Keep your rules, processes, and training materials up-to-date to accommodate new regulations, industry standards, or organizational changes. The end outcome will be an environment that promotes a mindset of continuous development.

Where to Download ISO 19600 PDF?

To download the ISO 19600 PDF, you can visit the official ISO website or authorized distributors such as ANSI, BSI, or other national standards bodies. ISO 19600, which provides guidelines for compliance management systems, is a crucial document for organizations aiming to adhere to compliance requirements.

Additionally, some professional associations and libraries may offer access to the standard as part of their membership benefits. Always ensure you obtain the document from a legitimate source to guarantee you are accessing the most accurate and up-to-date version.

Conclusion

Hopefully, you now understand ISO 19600:2014 very well. This information will be very beneficial to organizations trying to put up effective compliance management systems. Guidelines for establishing compliance frameworks, maintaining them, and improving their efficacy are provided by the ISO 19600 standard. It also helps firms reduce risks, comply, and act ethically.

It emphasizes continual improvement, senior management engagement, and employee participation in risk assessments, training, regulations, and performance monitoring. Adopting ISO 19600 demonstrates ethical and legal compliance using industry best practices. Understanding it improves trust, brand reputation, and operational and legal concerns.

Do you know that you find ISO 19600 consultants on CertBetter who can support you with the implementation and compliance?