Corporate compliance is crucial to any business, so it must have you wonder how much needs to be spent for an effective training program. Determining the budget for compliance training from platforms like True Office Learning is a crucial first step, and something you must do with the appropriate factors to consider. Such factors must fit your organization, the industry you’re in, and the risk employees may face.
Whether you need to conduct cybersecurity learning using True Office Learning or anti-harassment in-office, read on. We’ll share what you need to know about budgeting for the compliance department.
How to Build a Budget
All businesses will depend on budgets, with investments having the ability to make or break a strategy. While that idea would apply to all types of training, compliance training is especially crucial to an organization’s liability. In some cases, it’s absolutely essential so businesses will avoid consequences like large government penalties or lawsuits.
In some industries, there is a much stricter regulation compared to others. In fact, many industries see that compliance training is an absolute must. Some industries may have a bit of wiggle room, but the transparency demanded by modern consumer values indicates that it’s becoming even more crucial to maintain compliance in organizations.
This brings us to the budget. How much can you invest in compliance training? More importantly, how much can an organization afford not to invest in compliance?
Understandably, money doesn’t come from trees. While it isn’t the best investment to reallocate a significant percentage of the budget to compliance, understanding the factors to consider can help one define the appropriate budget balancing the organization’s needs.
Here are some of the main factors to consider, and what should go into the budget:
- Company revenue
- Business Complexity
- Number of employees
- Time requires
- Inherent risk exposure
- Training cost
- Tools and resources
Corporate compliance training will take all those factors into account, though there are still other areas to focus on to optimize the budgeting strategy, such as:
Target the Need
What specific change in behavior or attitudes must happen for employees to meet the compliance standards? This might be a very obvious question, but still an important one.
The budget for compliance training must be informed by the needs you must address. If substantial changes must be made, then your budget must reflect that.
Understand the Risk
Risk exposure is another crucial factor to consider. Compliance training is focused on mitigating risk, so there is more to look into here when it comes to the budget.
Organizations have their own unique risks to take into account as they develop corporate compliance training. Within the company, employees might be exposed to different risks in varying amounts.
Compliance training needs to be developed with such risks in mind and to explain the reasons behind company policies, which are just some of the many variables!
Wrapping It Up
Keep all this information in mind as you create a budget for a successful compliance training program.
