Regulatory Сompliance Quarter

Regulatory Сompliance Quarter (hereinafter, the Quarter) is a lecture introducing the learners to team analysis primarily through key topics related to business intelligence. The Quarter is the second of four lectures of Team Quadrivium, which is the sixth of seven modules of Septem Artes Administrativi (hereinafter, the Course). The Course is designed to introduce the learners to general concepts in business administration, management, and organizational behavior.

Outline

Market Engagements Quarter is the predecessor lecture. In the enterprise analysis series, the previous lecture is Social Rationale Quarter.

Concepts

1. Regulatory compliance. A legal entity's adherence to laws, regulations, guidelines and specifications relevant to its businesses. Violations of regulatory compliance requirements often result in legal punishment, including fines.
   • Compliance. The action or fact of complying with a wish, command, standard, policy, law, rule, requirement, and/or regulation.
   • 508 compliance. Compliance to the Federal Electronic and Information Technology Accessibility and Compliance Act, also known as the new Section 508 of the Rehabilitation Act of 1973.
2. Authority. The rights inherent in a managerial position to establish policies and/or give orders to subordinates to expect the orders to be obeyed.
   • Line authority. Authority that entitles a manager to direct the work of an employee.
   • Staff authority. Positions with some authority that have been created to support, assist, and advise those holding line authority.
3. Policy. A guideline for making decisions.
   • Operative rule. A business rule that an enterprise chooses to enforce as a matter of policy. Operative rules are intended to guide the actions of people working within the business. They may oblige people to take certain actions, prevent people from taking actions, or prescribe the conditions under which an action may be taken.
4. Rule. One of a set of explicit or understood regulations or principles governing conduct within a particular activity or sphere.
   • Guideline. A general rule, principle, or piece of advice.
   • Principle. (1) A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning; (2) A fundamental source or basis of something.
5. Standard. (1) A level of quality or attainment; (2) A concept or thing used as a measure, norm, or model in comparative evaluations.
   • ISO 9000. A series of international quality management standards that set uniform guidelines for processes to entire products conform to customer requirements.
6. Regulation. (1) A rule or directive made and maintained by an authority; (2) The action or process of regulating or being regulated.
   • Government regulation.
   • Industry regulation.
   • Enterprise regulation.
7. Self-regulation (or self-imposed regulation).
8. Compliance control. The body responsible for or the process designed to ensure that actual performance and products of this performance comply with existing regulations. Most commonly, the number of regulations tends to increase, so does the need for operational transparency. To ensure that all necessary governance requirements can be met without the unnecessary duplication of effort and activity from resources, enterprises are increasingly adopting the use of consolidated and harmonized sets of compliance controls.
9. Compliance data. All data belonging or pertaining to enterprise or included in the law, which can be used for the purpose of implementing or validating compliance. It is the set of all data that is relevant to a governance officer or to a court of law for the purposes of validating consistency, completeness, or compliance.
10. License. (1) An official permission or permit to do, use, or own something; (2) A document of permission to do, use, or own something.
    • Software license.
    • Open-source.
11. Licensing. One legal entity grants another legal entity the right to do, use, or own something. Property licensing usually involves permission to make or sell its products using its technology or product specifications.
    • One-window. An adjective that describes a service operation at which all of a customer's needs may be satisfied by a single server, without waiting in a second line.
    • Government licensing.
12. Intellectual property. Proprietary information that's critical to an enterprise's efficient and effective functioning and competitiveness.
    • Trademark.
    • Brand.
    • Copyright.
13. Patent licensing.
    • Patent.
14. Privacy.

Roles

1. Governance officer.
   • Compliance manager. A manager who plans, directs, and/or coordinates activities of an organization to ensure compliance with ethical or regulatory standards.
   • Compliance officer. A professional who examines, evaluates, and investigates eligibility for or conformity with laws and regulations governing contract compliance of licenses and permits, and performs other compliance and enforcement inspection and analysis activities not classified elsewhere.
   • Regulatory affairs manager. A manager who plans, directs, or coordinates production activities of an organization to ensure compliance with regulations and standard operating procedures.
   • Regulatory affairs specialist. A professional who coordinates and documents internal regulatory processes, such as internal audits, inspections, license renewals, or registrations. He or she may compile and prepare materials for submission to regulatory agencies.
2. CPA.

Institutions

1. Regulator. A stakeholder with legal or governance authority over the solution or the process used to develop it.
   • Regulatory agency.
2. Government.
   • Central government.
   • Local government.
3. United States Internal Revenue Service (IRS).

Methods

1. Data backup. An electronic copy of the financial data. This could be either to a cd disc, usb drive or some sort of cloud storage. Backups are vital to preventing loss of data if the computer crashes. The last thing you want to do is spend hours re-entering all the transactions for the previous months and re-do the bank reconciliations and everything else.

Instruments

1. Contract. A mutually-binding agreement by which a buyer is obligated to acquire specified deliverables from a seller. Usually, but not necessarily, the buyer pays the seller. A contract may define other obligations of the buyer and the seller.
   • Agreement. (1) A negotiated and typically, but not necessarily legally binding arrangement between parties as to a course of action; (2) Harmony or accordance in opinion or feeling; a position or result of agreeing.
2. Legal entity. Any entity such as an legally-adult individual or a corporation to which the law grants property rights and responsibilities. Particularly, the rights include capacity to buy and sell, enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued, as well as be held responsible for its actions.
   • Sole proprietorship. A form of legal entity in which the single owner maintains sole and complete control over the business and is personally liable for business debts.
   • General partnership. A form of legal organization in which two or more business owners share the management and risk of the business.
   • Limited liability partnership. A form of legal organization in which consisting of general partner(s) and limited liability partner(s).
3. Corporation. A form of legal entity that is owned by stockholders. Stockholders usually are not personally liable for the corporation's debts.
   • Closely held corporation. A corporation owned by a limited number of people who do not trade the stock publicly.
   • Initial public offering. The first public registration and sale of a company's stock.
   • S corporation. A specialized type of corporation that has the regular characteristics of a C corporation, but is unique in that the owners are taxed as a partnership as long as certain criteria are met.
4. Limited liability company. A form of legal entity that is owned by one or more members. Members are only liable to the extent of their investments.
   • Operating agreement. The document that outlines the provisions governing the way a limited liability company will conduct business.
5. Compliance software. A software system that while being implemented helps enterprises manage their compliance data more efficiently.

Practices

Workforce Arrangements Quarter is the successor lecture. In the enterprise analysis series, the next lecture is Enterprise Intelligence Quarter.