LP-CMS
(Lateral Praxis – Compliance Monitoring System) increase compliance oversight and drive performance improvement
Good governance “If a country does not have a reputation for strong corporate governance practices, capital will flow elsewhere. If investors are not confident with the level of disclosure, capital will flow elsewhere. If a country opts for lax accounting and reporting standards, capital will flow elsewhere.” —Arthur Levitt (Former Chairperson: US Securities Exchange Commission)
Board Structure Role of the Board Role of Individual Directors Role of Chairman Role of Company Secretary Role of the CEO
Defining Governance Roles Improving Board Processes
CEO / Strategy Monitoring Risk Management Compliance Policy Framework Networking Stakeholder Communication Decision Making
Corporate Governance
Board Meetings Board Meeting Agenda Board Papers Board Minutes Board Calendar Committees
Key Board Functions Effective Governance
Director Protection Board Evaluation Director Remuneration Director Development Director Selection & Induction
Compliance today.
Integrated & holistic
You deal daily with competing demands of regulators, business units, and senior management. How do you keep your balance? Compliance is most definitely not an outward facing service function. Its mission is internal: to guard the business. Compliance focuses on ensuring a firm is compliant with regulations, protecting a firm against reputational damage, and minimising fines and penalties. Well designed and intelligent compliance software tools like LP-CMS, make this possible with little or no friction or disruption.
LP-CMS follows on the MCA principle: “GRC is an integrated, holistic approach to organisation-wide governance, risk and compliance ensuring that an organisation acts ethically and in accordance with its risk appetite, internal policies and external regulations through the alignment of strategy, processes, technology and people.”
““The problems we have today, cannot be solved by thinking the way we thought when we created them.” — Albert Einstein.”
Configurable The LP-CMS framework must be configured to each company’s specification. Industry specific, geography-specific or product-specific needs are addressed during installation. Truly effective monitoring programs enable the organisations to identify emerging compliance issues before they become problematic. Shared monitoring capabilities leverage central data banks to capture critical information from systems within each business, geographic or functional area and report anomalies back to responsible stakeholders according to pre-defined rules.
Risk Triggers Inflation
Insurance risk
Compliance or performance-based drivers:
Changes in distribution channels Financial Strength Value vs Alternates
Government’s central & state reporting laws SEBI guidelines
Supply chain
Geopolitical
Corporate compliance policies Internal financial, operational performance goals SEBI Clause 49, SOX , HIPAA regulations
Financial markets
Personnel change
External monitoring—corporate agreements Third-party vendor due diligence and monitoring
Hazards
Distribution
Liquidity
Changes in input costs Security of supply Suppliers’ cost structures Logistics costs Tariffs
Company Impact of risk on: Productivity Product or service performance Cost structure
Customers Changes in ability / willingness to buy Price sensitivity Credit availability Shift in buying patterns
Policy regulation
Competition
Forex
Changes in competitive position vs competitors or substitutes Cost difference Relative product performance
Internal code of ethics Demographic
Disruptive technology
Downturn
Environment
Pandemics Commodity prices
LP-CMS integrated design LP-CMS is a composite solution capable of tying in all three components (Financial GRC, IT GRC, & Legal GRC) via an organisation’s legal department and Chief Compliance Officer. LP-CMS has been designed to effectively measure an organisation’s compliance while delivering sustainable value to the organisation. International standards enforced through SOX and similar compliances are adequately dealt with by standard GRC suites. However, Indian region-specific regulations require public and listed companies to strictly monitor compliances both from point of view of Legal Provisions and as part of their Internal Standards and Control. Compliance includes submission of e-Forms to the “Registrar of Companies” for private companies and to stock exchanges under Clause 49 for the listed companies.
Business often means having to take risks. Especially smart ones.
ERP enabled & SEBI compliant LP-CMS follows the “Ministry of Corporate Affairs” guidelines and works with data from within the company’s ERP system (like SAP). LP–CMS focuses on key best practices for successfully integrating management of governance, risk, and compliance processes, including automated submission of compliance related e-Forms.
LP-CMS: Salient Features Your compliance checklist with auto reminders Extract data from a company’s ERP system (SAP) Multi-level access to the CMS dependent upon individual’s role and responsibilities with provision for escalation to the next authority Mark compliances as High, Medium and Low priority Dashboard for management on the status of compliances carried out with key word search and drill-down to track actions Generate the Compliance Certificate at various levels directly from the system Links with the company’s HR database. Latest employee status allows compliances to be re-assigned as needed
Compliance for performance Compliance is definitely inward facing. But, in today’s economy, the Compliance department needs to operate like a well-run commercial enterprise by lifting some of the lessons about metrics and service levels from customer service models...
Sample compliance dashboard
LP-CMS Dashboards Our CMS dashboards are executive information systems that enhance visibility of performance and allow tracking of your key GRC performance indicators. Collating data from disparate systems, our dashboards present a unified view of the information. We enable your directors, managers & users to have a personalised insight of their GRC status and quickly spot problems before they adversely affect the business.
Your Gain Economic in cost, time & resources. Low TCO, Low implementation period, Low IT footprint A consistent, dependable compliance monitoring process for the company and all business stakeholders Prevent duplicitous monitoring of business processes and meet reporting requirements within time lines Drive the automation and efficiency of data loading, validation and auditing by focusing your resources
The LP promise Reliable, actionable information, provided in a consistent, rule-bound time line.
Continuous Transparency Jargon and hype aside—it is now necessary to step away from the traditional ledger and spreadsheet approach and focus on establishing a cohesive, learning system, delivering two important qualities in all your companies’ dealings: continuous transparency and inherent honesty. LP-CMS is a software framework that allows you to bring these goals with reach.
We are good at this —call us.
inclusive innovation CenterPoint, MVIRDC, World Trade Centre, Centre 1, 1st Floor, Cuffe Parade, Mumbai - 400 005, Maharashtra, INDIA Tel: +91 22 6638 7272 Fax: +91 22 2218 8175 email: preet@lateralpraxis.com Website: www.lateralpraxis.com