June 17

Avoiding non-compliance penalties with energy risk management software

With energy regulators constantly making changes to compliance frameworks, it is critical to avoid stiff non-compliance penalties and a poor reputation for not following regulatory requirements. 

However, avoiding repercussions for non-compliance is a challenging endeavour for most organisations because it requires them to make extensive changes to business operations, depending on their position within the industry. 

Whether they are energy producers, vendors, or distributors, organisations have an expansive regulatory framework to follow, which can increase regulatory costs and lead to inefficient compliance procedures. If organisations do not take appropriate measures, they could not only find themselves dealing with higher compliance costs but also running the risk of violating compliance regulations. 

Fortunately, by adopting new technology, organisations will have an easier time meeting the requirements set out in a changing regulatory framework. Energy risk management software is particularly well-suited to this task because it streamlines compliance procedures while exposing compliance gaps to mitigate risks.

Mitigating the risks of non-compliance and turning them into a benefit

Far from being a risk, compliance risk management can be turned into a beneficial operation that boosts productivity and innovation. 

Risk management should be an executive-level function

Risk management is seen to be a process that hinders innovation and growth. In fact, a survey revealed that over 24% of organisations believe that risk management slows down decision-making. 

However, if planned properly, compliance risk management can be used as a tool for growth and innovation, allowing organisations to expand operations without running a massive risk. Part of the problems associated with risk management comes from the decision-making process, which according to 17% of organisations, is not connected to business objectives. 

Hence, to resolve this problem, risk management should be incorporated early in the decision-making process. Furthermore, decisions regarding risk management should be alleviated by C-level executives. Moreover, integrating risk management early into business processes can help organisations account for compliance risks without delaying any innovative strategies.

Energy risk management software can help organisations alleviate risk management to a new level; for example, by streamlining report creation to help C-level executives understand the nuances of energy regulation law and compliance management.  

Use compliance to achieve multiple business objectives 

A Forrester report revealed that even though regulatory compliance remains a critical priority, it falls just behind stress-testing scenarios in terms of importance. 

This indicates that compliance is often competing with other business priorities, and when more attention and resources are allocated to other areas, it runs a higher risk of non-compliance violations. 

However, energy compliance is a critical component of many business operations, and if used correctly, could be the lynchpin for several business operations. For example, compliance can help organisations bolster risk management processes and optimise processes to improve productivity. 

For example, proper compliance management processes can improve responsiveness to risk and enable employees to make better day-to-day risk-based decisions, and improve their ability to protect vital assets.

Energy risk management software can help organisations optimise operations and build a more robust internal process that not only mitigates risks but also reduces operational costs without compromising productivity. 

Build transparency into compliance processes

Bringing transparency into energy risk anlysis and compliance management can help organisations mitigate risks of non-compliance and improve internal processes. However, it is unfortunate that most compliance programs could do more to encourage transparency, particularly when working with third-party organisations. 

To work around this problem, organisations should encourage transparency and inter-departmental cooperation. Facilitating collaboration between different business units ensures that different operations fall within the purview of energy regulatory frameworks. 

Incorporating transparency into business operations can help organisations meet their compliance requirements while also preventing any operations that coudl lead to a potential violation. 

Devising appropriate compliance frameworks

As the EU and UK look to drive down emission rates and alleviate renewable energy adoption rates, mitigating non-compliance operations is critical. This is because there will be additional scrutiny on energy vendors, producers, and distributors for any sign of compliance violation. 

The additional scrutiny, combined with the new regulatory updates, makes it critical for organisations to minimise compliance penalties and protect business reputation. 

This is where energy risk management software becomes critical. Risk management platforms can address the problems associated with compliance. These platforms can help streamline compliance management processes, reduce the cost of regulation and improve processes, which can help you Avoiding non-compliance penalties. 


Mitigate Non-Compliance, Mitigate Risk, Risk Management Software

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