Overcoming 7 Facility Management Compliance Risks with CAFM
Overcoming 7 Facility Management Compliance Risks with CAFM
Managing risk is an integral part of a facility manager’s (FM) role, given that they are responsible for ensuring that facilities comply with health and safety as well as other regulatory legislation. But what challenges do they face when it comes to mitigating risk? For FMs, the true challenge lies in the sheer number of risks they need to manage on a day-to-day basis. Facilities managers need to take charge of building safety, asset management, audits, as well as the safety and wellbeing of all their building users. Not to mention, they also need to make sure risk assessments are in place and third-party due diligence has been conducted thoroughly.
So, as you can imagine, FMs have a lot to contend with. According to JLL, one of our current clients, there are seven major areas of compliance risk that FMs face. But what are they?
What are the 7 facilities management compliance risks?
Across these seven compliance risks, we consider how Computer Aided Facilities Management (CAFM) can help FMs mitigate them.
Safety
Safety compliance is essential for ensuring the well-being of people using your facilities. In essence, this requires FMs to keep those using their buildings safe. Risks include fire, electrical, gas, water, air, asbestos, and hazardous waste handling. Facilities managers can mitigate these risks by maintaining equipment and facilities to required standards, ensuring proper training and qualifications for individuals monitoring and maintaining equipment, and demonstrating compliance through reporting.
Although there are many factors that affect the health and safety of a building, one of the best ways to remain compliant is to implement planned preventative maintenance. Preventive maintenance is essential in helping you ensure health and safety across your property portfolio. That’s why Elogs CAFM offers a PPM tool which makes it easy for FMs and PMs to streamline workflows and keep control of planned maintenance activities.
Hard facilities management activities is also vital with regards to meeting the latest health and safety regulations. This is because hard FM focuses on the physical elements that make up a facility or building, contributing to the functionality and safety of a space. Examples of hard FM include fire safety systems, electrical and mechanical, preventative maintenance works, and more. With job logging, increased visibility, and preventive maintenance, Elogs CAFM system makes managing hard FM simple.
CAFM also helps facilitate continuous improvement in health and safety, as it takes a Plan-Do-Check-Act (PDCA) approach. This process helps businesses to constantly plan, check and carry out actions; this is especially helpful with regards to safety in facilities management, as it offers an easy way to manage change and solve problems.
Security
Security compliance involves handling confidential information (e.g., GDPR, ISO 27001). Facilities managers can mitigate security risks by implementing robust data security measures, ensuring compliance with relevant regulations, and using secure document management systems for contracts and other sensitive information.
CAFM platforms serve as centralised systems for critical facility-related data, including asset information, maintenance records, and work order requests. By consolidating this information in a central database, CAFM software makes facilities management simple and stress-free. Elogs CAFM system also stores all your supply chain documents in a single location. Ultimately, CAFM helps to enhance security by improving safe documentation storage.
Finance
Finance compliance means providing financial transparency across supplier relations. Facilities managers can mitigate finance risks by implementing strict financial controls, maintaining accurate and consistent financial data, and adhering to procurement and vendor management policies and procedures.
Elogs CAFM system is integrated with Prosure360, a supply chain management software, which gives you full control of your supply chain. This unique platform shows whether your contractors and suppliers meet your specific business requirements. Finding reliable and qualified suppliers is extremely important in ensuring property maintenance is conducted efficiently and to a high standard.
With regards to financial management, Prosure360 allows you to easily see the financial status of your service providers in an accessible, readable format. With real-time data, you can see an up-to-date analysis of your service providers, making it easy to keep track of their financial health.
Not knowing the financial status of your suppliers and contractors is risky. If a service provider doesn’t complete a job due to financial circumstances, it doesn’t just reflect badly on them, but also on your business. This means not only will your tenants been dissatisfied, but your investors will lose trust that you can effectively manage your property portfolio. With Elogs CAFM, there is also functionality which allows you to request quotes, meaning that the facilities manager can conduct their due diligence and obtain the relevant number of quotes to ensure they are getting value for money from those they are working with.
The financial status of your current suppliers and contractors could change at any minute which means FMs always need to stay informed. With Elogs CAFM and Prosure360, you can have peace of mind that you are working with financially stable companies, helping to reduce risk in your business.
Data
Data compliance involves demonstrating compliance through reporting and standardising data related to compliance. Facilities managers can mitigate data risks by using facilities management systems to capture and report on relevant data. This ensures the accuracy and consistency of data, and securing sensitive information.
Elogs CAFM stores all your documentation, tracks actions, and allows you to see comprehensive audit trails so that everyone stays informed. This means you can see what equipment has been serviced and when, the service history of your assets, any supplier requests. With Elogs CAFM, you have total visibility of your buildings, meaning it’s much easier to protect and share sensitive data.
Ethical
Ethical compliance requires ensuring transparency and accountability across FM operations. Facilities managers can mitigate ethical risks by effectively managing supplier relationships using an SCM platform. FMs also need to prove how supplier relationships are managed financially, contractually, and operationally. All facilities management companies should be able to demonstrate a strong commitment to ethical behaviour.
Elogs CAFM is integrated with Prosure360. This means all your supplier and contractor certifications, verifications, and other vital documentation is in one easy-to-access place. This means that your business only works with ethical service providers who meet your specific standards, ensuring good corporate governance. Prosure360 offers the capability to conduct pre-qualified assessments which cover subject matters that are critical for ESG alignment, encompassing the requirements outlined in PAS91, including:
- Modern Slavery.
- Equality and Inclusion.
- Quality.
- Sustainability.
Using our integrated software, FM companies can verify that their partners share and uphold the same ethical standards.
Contractual
Contractual compliance involves controlling and maintaining legal documentation. Facilities managers can mitigate contractual risks by storing contracts in secure document management systems, like CAFM. With these systems, you’ll be able to easily access documents and prove to external stakeholders that you have the right assurances in place regarding suppliers and compliance.
Elogs CAFM system allows clients to track the performance of a contractor on their portfolio. This KPI (Key Performance Indicator) function means that you can monitor the performance of a specific KPI by service provider, site, or portfolio, over a 12-month rolling period. This can be particularly useful for demonstrating a performance trend, and it can be used in conjunction with the monthly report if a site or service partner is on an improvement plan.
In addition to Prosure360, Elogs CAFM is also integrated with risk management software, Meridian. With this cutting-edge compliance management solution, you can gain comprehensive insights into your health and safety performance.
Being able to evidence your procurement processes and supplier selection methods is half the battle when it comes to compliance. Regulators need to see proof that you can safely provide services to those working or living in your buildings, so be prepared.
Labour
Labour compliance demands that facilities managers ensure their people are adequately qualified and carrying out duties as required. Facilities managers can mitigate labour risks by complying with anti-discrimination laws, human resource-related regulations, and company policies, both in their own operations and with their subcontractors.
Being able to evidence this requires FMs to hire qualified people, mitigate risk in the supply chain, ensure suppliers comply with your business requirements as well as the current legislation.
What is the impact of not managing these compliance risks?
Mitigating these compliance risks and meeting statutory compliance is non-negotiable for facilities management companies. The impact of not meeting these requirements can seriously put your business at risk. By having insufficient awareness of legal responsibilities or being unable to evidence compliance, your business could suffer significant brand and reputational damage, as well as receiving potential.
It’s also important to consider the human element here. Managing health and safety is not just about remaining compliant, but about keeping people safe. Any stakeholders or building occupants have the right to feel safe and sure that your building is not exposed to any serious risk. As a facilities manager, you have a duty to ensure the safety of your buildings and the people within them.
Identifying, understanding, and managing these seven compliance risks is crucial to ensuring a safe and secure environment for colleagues, tenants, and key stakeholders in addition to protecting brand reputation. By addressing these compliance risks proactively, facilities managers can create a safer, more secure, and ethically sound environment while also avoiding potential financial and legal repercussions.
Ready to improve compliance activities with CAFM? Get in touch to book a demo today!
