What does an effective policy aim to direct?

An effective policy aims to direct individual compliance and behaviors within an organization. This means that a well-designed policy sets clear expectations and guidelines for employees, ensuring that they understand their responsibilities when it comes to adhering to compliance regulations and ethical standards. It provides a framework for decision-making and influences how employees act in various situations. By focusing on individual behaviors, the policy helps to cultivate a culture of compliance throughout the organization, ensuring that every team member is aligned with the organization’s compliance objectives.

While operational budget considerations, organizational structure, and external stakeholder relations are important aspects of an organization's overall functioning, the primary purpose of a compliance policy is to impact the actions and decisions of individuals within the organization. This focus on individual adherence is critical to mitigating risks and promoting a compliant environment.