What is the difference between a policy and a procedure in compliance?

The distinction between a policy and a procedure is fundamental in the context of compliance and organizational governance. A policy serves as a guiding principle that outlines the organization's intentions, goals, and overall approach to a specific area, such as compliance or risk management. It provides a framework for decision-making and sets the tone for the behavior expected within the organization.

On the other hand, procedures are the step-by-step instructions that detail how to implement those policies in practice. They cover the specific actions that need to be taken, who is responsible for the actions, and the timeline for implementation. This structured approach ensures that the intentions set forth in the policy are effectively translated into day-to-day operations.

By delineating the high-level intentions in a policy and the detailed processes in procedures, an organization ensures clarity and consistency in its compliance efforts. This distinction is crucial for employees and management, as it helps everyone understand not just what is supposed to be done (the policy) but also how to do it (the procedures).