What does operational compliance pertain to?

Operational compliance pertains to adhering to internal policies and procedures within an organization. This encompasses the systems and processes that companies put into place to ensure they follow their established protocols and standards. Compliance at this level ensures that the organization operates efficiently and effectively according to its own rules, which may include issues of safety, protocols for data handling, and internal quality controls.

While external regulatory guidelines can certainly play a role in an organization’s operations, operational compliance specifically focuses on the internal mechanisms that guide daily activities. This is crucial for maintaining organizational integrity, avoiding misconduct, ensuring employee safety, and enhancing overall operational effectiveness.

The preparation of annual financial reports and managing supplier contracts do not directly relate to operational compliance as they cater more to financial reporting and contract management, respectively, rather than the adherence to internal policies and practices.