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Volume 31, Issue 2

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Thursday, 13 September 2018 14:55

Organizations Need A Global Compliance Framework

When thinking about handling compliance at scale, creating a global framework can allow the organization to grow without limit.

How challenging is it to work in compliance these days? World-class compliance experts from TMF Group share their views. This is the second part of the series 5 truths about global compliance. Read the first part here and download the paper to read the full version. 

In 1956, the cognitive psychologist George A. Miller of Princeton University published a paper called “The Magical Number Seven, Plus or Minus Two.” It became one of the most cited scientific papers of all time. Miller’s idea was that the maximum number of objects a human can keep in short-term memory is seven, plus or minus two. Beyond this, the “working” category of memory struggles to retain the information. The Magic Number therefore can hold true for digits, playing cards, and potentially where golf balls are hit on a driving range.

The Magic Number exemplifies what we know, but beyond a certain degree of complexity we need a formal system to cope.

There is a close parallel with compliance. Above a threshold of complexity an improvised approach will collapse. The mind becomes overloaded and when this happens, errors can creep in. In a multinational organisation with dozens of entities to manage, each unique, the compliance function can be soon reduced to chaos.

When thinking about handling compliance at scale, and where possible, creating a global framework can allow the organization to grow without limit.

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https://www.corporatecomplianceinsights.com/organizations-need-a-global-compliance-framework/