LP-CMS(Lateral Praxis – Compliance Monitoring System)

increase compliance oversight and drive performance improvement

““The problems we have today, cannot be solved by

thinking the way we thought when we created them.”

— Albert Einstein.”

CEO / StrategyMonitoringRisk ManagementCompliancePolicy FrameworkNetworkingStakeholder CommunicationDecision Making

Board StructureRole of the Board

Role of Individual DirectorsRole of Chairman

Role of Company SecretaryRole of the CEO

Board MeetingsBoard Meeting Agenda

Board PapersBoard Minutes

Board CalendarCommittees

Director ProtectionBoard EvaluationDirector RemunerationDirector DevelopmentDirector Selection & Induction

DefiningGovernance Roles

ImprovingBoard Processes

Key BoardFunctions

EffectiveGovernance

CorporateGovernance

Compliance today.You deal daily with competing demands of regulators, business units, and senior management. How do you keep your balance?Compliance is most definitely not an outward facing service function. Its mission is internal: to guard the business. Compliance focuses on ensuring a firm is compliant with regulations, protecting a firm against reputational damage, and minimising fines and penalties. Well designed and intelligent compliance software tools like LP-CMS, make this possible with little or no friction or disruption.

Good governance

“If a country does not have a reputation for strong corporate govern-ance practices, capital will flow elsewhere. If investors are not confi-dent with the level of disclosure, capital will flow elsewhere. If a country opts for lax accounting and report-ing standards, capital will flow elsewhere.” —Arthur Levitt (Former Chairperson: US Securi-ties Exchange Commission)

Integrated & holisticLP-CMS follows on the MCA principle: “GRC is an integrated, holistic approach to organisation-wide governance, risk and compliance ensuring that an organisation acts ethically and in accordance with its risk appetite, internal policies and external regulations through the alignment of strategy, processes, technology and people.”

ConfigurableThe LP-CMS framework must be configured to each company’s specification. Industry specific, geogra-phy-specific or product-specific needs are addressed during installation. Truly effective monitoring programs enable the organisations to identify emerging compliance issues before they become problematic. Shared monitoring capabilities leverage central data banks to capture critical information from systems within each business, geographic or func-tional area and report anomalies back to responsible stakeholders according to pre-defined rules.

Business often means having to take risks. Especially smart ones.

Changes in competitive position vs competitors or substitutesCost di�erenceRelative product perfor-mance

Changes in ability / willingness to buyPrice sensitivityCredit availabilityShift in buying patterns

Impact of risk on:ProductivityProduct or service performanceCost structure

In�ation

Hazards

Financial markets

Disruptive technology

Policy regulation

Downturn

Environment

Commodity prices

Pandemics

Demographic

Forex

Geopolitical

Personnel change

Liquidity

Insurance risk

Risk Triggers

Changes in input costsSecurity of supplySuppliers’ cost struc-turesLogistics costsTari�s

Changes in distribution channelsFinancial StrengthValue vs Alternates

CompanyCustomers

Competition

Supply chain

Distribution

ERP enabled & SEBI compliantLP-CMS follows the “Ministry of Corporate Affairs” guidelines and works with data from within the company’s ERP system (like SAP). LP–CMS focuses on key best practices for successfully integrating management of governance, risk, and compliance processes, including automated submission of compliance related e-Forms.

LP-CMS: Salient Features

� Your compliance checklist with auto reminders � Extract data from a company’s ERP system (SAP) � Multi-level access to the CMS dependent upon

individual’s role and responsibilities with provision for escalation to the next authority

� Mark compliances as High, Medium and Low priority

� Dashboard for management on the status of compliances carried out with key word search and drill-down to track actions

� Generate the Compliance Certificate at various levels directly from the system

� Links with the company’s HR database. Latest employee status allows compliances to be re-assigned as needed

ComplianCe or performanCe-based drivers:

� Government’s central & state reporting laws

� SEBI guidelines

� External monitoring—corporate agreements

� Third-party vendor due diligence and monitoring

� Corporate compliance policies

� Internal financial, operational performance goals

� SEBI Clause 49, SOX , HIPAA regulations

� Internal code of ethics

LP-CMS integrated designLP-CMS is a composite solution capable of tying in all three components (Financial GRC, IT GRC, & Legal GRC) via an organisation’s legal department and Chief Compliance Officer. LP-CMS has been designed to effectively measure an organisation’s compliance while delivering sustainable value to the organisation.International standards enforced through SOX and similar compliances are adequately dealt with by standard GRC suites. However, Indian region-specific regulations require public and listed companies to strictly monitor compliances both from point of view of Legal Provisions and as part of their Internal Standards and Control. Compliance includes submis-sion of e-Forms to the “Registrar of Companies” for private companies and to stock exchanges under Clause 49 for the listed companies.

CenterPoint, MVIRDC, World Trade Centre, Centre 1, 1st Floor, Cuffe Parade,Mumbai - 400 005, Maharashtra, INDIATel: +91 22 6638 7272Fax: +91 22 2218 8175

email: preet@lateralpraxis.comWebsite: www.lateralpraxis.com

i n c l u s i v e i n n o v a t i o n

Sample compliance dashboard

The LP promiseReliable, actionable information, provided in a consistent, rule-bound time line.

Compliance for performance

Compliance is definitely inward facing. But, in today’s economy, the Compliance department needs to operate like a well-run commercial enterprise by lifting some of the lessons about metrics and service levels from customer service models...

LP-CMS DashboardsOur CMS dashboards are executive information systems that enhance visibility of performance and allow tracking of your key GRC performance indicators. Collating data from disparate systems, our dashboards present a unified view of the information. We enable your directors, manag-ers & users to have a personalised insight of their GRC status and quickly spot problems before they adversely affect the business.

Your Gain � Economic in cost, time & resources. Low TCO,

Low implementation period, Low IT footprint � A consistent, dependable compliance monitoring

process for the company and all business stakeholders

� Prevent duplicitous monitoring of business processes and meet reporting requirements within time lines

� Drive the automation and efficiency of data loading, validation and auditing by focusing your resources

Continuous TransparencyJargon and hype aside—it is now necessary to step away from the traditional ledger and spread-sheet approach and focus on establishing a cohesive, learning system, delivering two impor-tant qualities in all your companies’ dealings: continuous transparency and inherent honesty.LP-CMS is a software framework that allows you to bring these goals with reach.

We are good at this —call us.