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POLICY 2.0 OVERVIEW


Policy 2.0 offers regulated firms a new and streamlined way to convey guidelines and compliance requirements to their teams. Moving away from extensive document sets, it uses a unique principle-based approach that maps directly to the business operations.


This approach not only reduces the management burden of maintaining extensive document sets but also offers businesses a clear path forward. It's simpler to monitor and support with automated reporting while delivering a clearer understanding to the business teams on what's expected from them.



What Does Policy 2.0 Replace?


Currently, businesses communicate their compliance and other requirements through extensive document sets made up of Standards, Policies, and Procedures. The sheer amount of information and complex cross-referencing in these documents often leads to limited business interaction with them.


Large Document Suite used by businesses to manage their compliance and other business instructions.
Large Document Suite used by businesses to manage their compliance and other business instructions.

This creates a gap between the expectations set out in the policy documents and the actual business operations. Such discrepancies pose challenges in assuring the Board and Senior Managers (subject to SMCR) that the business is aligning with their expected standards as outlined in the policies.



Introducing a Fresh Approach


Most business policies are developed around key principles, commonly referred to as "Policy Principles". Policy 2.0 allows firms to build their business instructions around these policy principles.


Turning long form policies into discreet Policy principles
Turning long form policies into discreet Policy principles

These Policy Principles represent the primary goals the Board wants the business to achieve. Once a principle is set by the Board, the designated executive will define the CORE Elements linked to that principle.


CORE Elements are defined as the smallest operational units of a business, think of these as the building blocks of your operations. We define four types of CORE Elements and link them directly to each Policy Principle. These are:

CORE Elements supporting Policy Principles
CORE Elements supporting Policy Principles
  1. Risks: These identify potential pitfalls or issues that could arise if a principle isn't achieved.

  2. Controls: These are the proactive measures or steps a business should implement to ensure they align with the desired outcomes of a policy principle.

  3. Indicators: These are the measurable metrics or signs used to monitor and confirm that a principle is actively being met.

  4. Actions: These are the reactive measures or steps taken when things deviate from the expected path or when unforeseen challenges arise.


Explore related articles below to see how this approach is brought to life by our Policy 2.0 App.

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