Is the cost of compliance value for money?

Value for money has long been an area of consideration for product providers and product compliance professionals

It’s clear that delivering value for money needs to go well beyond the current range of gaining a compliance certificate in order to achieve a competitive market access that works for business. If organisations do not have a robust methodology for measuring value for money, this can significantly limit the business the ability to deliver it.

Aside from the obvious risk of regulatory intervention, an issue that is often overlooked is the impact of getting this wrong in terms of a decline in customer trust and loyalty and, ultimately, the impact this could have on long term commercial success.

So what factors should organisations considers when it comes to assessing value for money to ensure they meet regulatory requirements and achieve business goals?

Business definition of value for money can vary greatly. It’s a subjective area and we regularly see it dividing opinions within a firm. For example, finance teams will have a different perception than engineering or commercial teams.

Some practical considerations for your review framework:

  1. Do you have a methodology that uses a combination of different benchmarks to demonstrate how the supplier has demonstrated your product is compliant?

  2. How do you examine whether the information supplied meets the regulatory requirements?

  3. Does the information supplied clearly demonstrate compliance to the applicable standards?

  4. Do you have a methodology that uses a combination of different benchmarks to demonstrate how a product is performing?

It’s not enough just to ensure controls are robust. The value of effective controls is only realised when organisations commit to action when poor customer outcomes are found. The challenge organisations have is establishing a set of thresholds, below which the performance of a product is classed as unsatisfactory – this not always easy in the subjective area of value for money, and is a challenge further exacerbated by the need to take a risk-based approach (i.e. the need to establish the level of risk inherent in each product and to react proportionately to manage it).

When it comes to value for money, compliance should have no risk, a business should be able to demonstrate it has met the regional regulatory requirements where they do business, not by showing a certificate that they have met the requirements but documentary evidence that they have met the requirements.

The CE Marking Authority is here to help business demonstrate compliance. So, let the trusted voices in product compliance guide you through the regulatory approval process. So, contact the team at the CE Marking Authority delivering high quality certification and associated services to our customers around the world.

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Unfortunately, I wish to inform you of the new UKCA Marking requirements that our government publish on 14 November 2022. I wish to apologise to all my customers for ensuring they were UKCA compliant