Costs And Risks Of Non-Compliance
The COMPLEXITY of compliance
According to the Deloitte report “Get out of your own way. Unleashing Productivity”, Nov 2014, “we don’t even know how many government bodies there are that can set rules in the first place, let alone the number of rules those agencies have laid down…….Yes, that’s right – we can’t even count the rule-makers, let alone the rules.”
Strytex reduces the complexity by creating a Managed Intelligent Single Source of Truth (MISSOT) for each business to help them keep track of their hundreds or thousands of compliance documents.
The COST of compliance
Compliance is a costly, mind‑numbing, never-ending, soul-destroying task. It’s generally spread out piecemeal across an organisation, so no one really knows how much it costs.
Deloitte Access Economics estimates that rules and regulations cost Australia $249 billion per year, every year, of which, 20% is spent on administrative costs. According to the Deloitte report, “Get out of your own way”, Nov 2014, compliance administration has got so out of control that
- 1 in 11, or 9% of employed Australians now works in the compliance sector,
- Employees spend 8 weeks in every year administering and complying to compliance rules
- Senior executives and middle managers spend 8h54 mins every week complying with corporate rules they have set for themselves. Other employees spend 6hrs 36 mins every week on the same.
So we have highly skilled (expensive) managers across Finance, Legal, Accounting, HR, WHS, Facilities, Contracts, IT, Food Safety wasting eight valuable weeks a year time on mundane, administrative tasks. Imagine the benefit if they were spending those eight weeks a year on strategic and operational issues.
Working with Deloitte we calculated that Compliance Administration costs each business 6.24% of employee expenses, or if you manage a small team 12.5% of total salaries. Yes, all that time and money is spent on paperwork!
By outsourcing to Strytex, a central Business Process as a Service (BPaaS), you can significantly reduce your cost of compliance administration. Strytex reduces the cost by focussing on the low-level administrative tasks and doing them very efficiently.
The RISK of non-compliance
Through no fault of their own, most small, medium and even some large organisations can’t afford specialist compliance managers across all the main area of compliance, namely, WHS, food safety, facility management, purchasing, supply chain, IT etc. Now, if there is an event with a failure to comply with WHS legislation, senior managers, the Persons Conducting a Business or Undertaking (PCBU) may be prosecuted even if no-one is injured.
More often than not, non-specialist business managers and office managers are put in charge of compliance. Not only are these managers not formally trained in all areas of compliance, it’s very difficult for them to keep up to date, which is no easy task. These business and office managers often wear multiple hats so compliance (complex and costly) comes last or is ignored until it’s too late. This double whammy of over-regulation and lack of training puts the vast majority of small, medium and even large organisations at risk. With non-compliant suppliers and contractors, reputational and brand risk is also a factor.
The Business Council estimates Australia has “well over half a million pages of regulation”, but no-one knows just how many individual rules that really means. In fact, we don’t even know how many government bodies there are that can set rules in the first place, let alone the number of rules those agencies have laid down. Yes, that’s right – we can’t even count the rule-makers, let alone the rules! and that’s just part of the problem. According to Deloitte, government, be it federal, state or local, only accounts for 37% of the rules. The vast majority of the rules are self-inflicted! Industries and organisations are creating the policies and rules that are causing most of the red tape!
Strytex reduces risk by sharing practical information to help keep business managers up to date.
The Benefits Of BPaaS (Business Process As A Service)
Focus on core competencies
No lock in contracts
No software development costs
Elimination of persistent errors
Reduced operational costs
No software support costs
Increased organisational flexibility
Benefits Of Strytex
By providing a centralised outsourced service, Strytex
- Reduces cost by sharing the administrative costs.
Instead of every organisation chasing the same documents across multiple suppliers and contractors, Strytex does it once for the whole industry.
- Reduces risk by sharing information across job titles.
When we hear of something new, a change in the regulation or come across a really good way of doing things, we share it across the industry.
We will save you time, money and sanity. Sit back, relax and let us do all the hard work. Simply give us your documents and rules. We set everything up and keep everything up to date so you don’t have to.
All you need to do is log in to the portal to see who or what is non-compliant and then drill down to see why they are non-compliant. Oh yes, we also send you a monthly report.
You get a service not a product
A secure, managed, single source of truth (MASSOT)
Get rid of boring paperwork
100% supplier participation
Breadth of documents
You are in control
As we grow larger and as governments and industries open up their databases. we will also develop automatic daily validation of licences. insurance etc.