Internal and external rules as company guidance
In the business world, just as in the sports world, rules create a level playing field for players. They act as guidance for a company to assure fair business practices and as a framework for employees to conduct daily affairs. The rules of business are complex and rapidly evolving to accommodate changes in the marketplace. Not knowing the rules can lead to poor decision-making and can expose a company to tremendous risk.
Know the rules – limit risk exposure
Policies and procedures allow a company to establish the rules and drive their business. They are an essential part of the day-to-day decision-making process. Internal rules dictate company travel policy – who flies business? what are spending limits for travel? how much is the maximum amount for meals. But also, they serve as guidance for supplier selection – who are our acceptable suppliers? what are their established rates? how can we establish a tender for a new supplier? The creation of a set of rules is driven by a necessity to control costs, optimize processes and to help a company run better.
On the other hand, external rules are a complex web of regulations, legislation and policies that are constantly changing and can be different from one country to the next. Rules can be dictated by taxation laws – what is considered a business expense? what are acceptable spending limits? But also, they are affected by regulations that can come into effect, sometimes unexpectedly – what policies must be followed to comply with the FCPA in the US? how can regulatory compliance for the Sunshine Act in the UK be assured? what does the Article 13.3 measure in Russia call for? And, that’s just to name a few. Managing compliance requirements can be costly for a company but not knowing the rules can expose the company to liability issues as well as civil and criminal penalties.
So, how can a company limit risk exposure while optimizing the day-to-day decision-making process?
Creating a digital model of the rules
Hamilton’s solutions take into account the different policies and procedures companies must follow to remain compliant, whether internal or external, and models these rules in a parameter-driven application. Essentially, this is a digital model of the business environment that takes into account the rules and is able to generate an automatic assessment during the decision-making process to inform the customer of what is allowed and not allowed. Moreover, digital modeling in the platform allows for a complete trace of all documents and exchanges in the business process, electronic signatures and complete transaction histories to assure complete compliance.
Of course, we understand that there are always exceptions to the rule. So, Hamilton solutions allow companies to control what is automated and what needs customization according to company specificities.
By modeling the rules, Hamilton solutions help companies limit exposure to risk while optimizing the decision-making process. Managers know the rules of the game so they can concentrate on maximizing their business.