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Policies are often ineffective, often not understood, poorly managed, and represent more of a token gesture than a comprehensive and sustainable approach to risk management. Why are they so important? Policies not only serve as legal documents that protect the enterprise from liability, but they have also been used in court against the company if written, but not communicated or enforced equally. If that isn’t a wakeup call! There is often limited process in place to validate the effectiveness of business policies, a general lack of communication and little policy enforcement that leads to failures - one example is a company simply posting their policy on an intranet and hoping that employees both read and understand them.

In order for a policy to be effective, you need to be sure that employees understand the policies, and more importantly, are clear on the consequences of non-compliance. We also suggest that you have all of your employees sign an agreement stating that they will abide by them. Here are a few tips for effective policy management:

• Change your policies with your business- companies are constantly changing, don’t forget to update your policies to reflect that change
• Follow-through - with consequences in place, don’t let them slide. One employee getting away with non-compliance will diminish your policies credibility.
• Make sure your policy is clearly defined, understandable, and addresses what and why

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