Implement scenario-based learning for successful compliance
In 2024, regulatory fines reached an unprecedented $19.3 billion worldwide. These fines imposed for financial crimes, failure to compliance, and violations of governance are harsh reminders of the risks businesses face when compliance is not taken seriously.
The real risk of violation
We all know that non-compliance can have serious consequences. It’s not just about paying a fine. There are legal implications such as criminal charges, litigation and regulatory sanctions that can disrupt business operations. Damage to a company’s reputation can be long-term and can have a negative impact on the performance of the stock market, losing trust, missing business opportunities, and even having a negative impact on stock market performance. Operationally, non-compliance can result in regulatory restrictions and increased scrutiny, making daily business even more challenging.
Wide range of compliance
To avoid these pitfalls, organizations need to actively address compliance across a wide range of areas. These include:
code of conduct. This covers everything from conflicts of interest and insider trading to whistleblower protection and fraud prevention. Legal and regulatory compliance. Here, organizations should remain vigilant about bribery and corruption, money laundering anti-money laundering (AML), export controls, financial reporting standards, intellectual property, and risk management related to third parties. Data and information protection. Regulations such as the GDPR and CCPA require businesses to focus on data privacy, cybersecurity, record management and responsible use of social media. Workplace behavior and culture. Ensuring a respectful and inclusive workplace means dealing with harassment, violence, discrimination, and the promotion of diversity, equity, and inclusion (DEI). Health, safety, the environment. Maintaining a safe and healthy environment is an unnegotiable part of compliance.
Looking at the full spectrum, it is clear that compliance is not a small feat. This is an ongoing responsibility.
Compliance and Training Programs
The organization implements compliance training programs to raise ethical awareness and adhere to regulatory standards. But how effective are they?
According to a report from Gallup, only 10% of employees felt that compliance training had an impact on their work practices. There may be several reasons for this, but education designers have the opportunity to make meaningful impact.
Deciphering compliance clauses
Let’s take a closer look at the typical compliance-related terms you may encounter.
“Employees are required to disclose any individual, financial or other interests that may affect or affect their ability to perform their duties fairly.” “Employees are prohibited from buying or selling securities based on materials, private information obtained during their employment.” “Gifts, entertainment, or other perks must not be accepted by vendors or clients if they may affect or affect decision-making.” “In the processing of personal data, we guarantee that the data subject is legally responsible for processing, consent when necessary, principles of minimization of data are observed, and that appropriate technical and organizational measures will protect against the fraudulent or illegal processing, loss or destruction of personal data in accordance with Articles 5 and 32 of Article 32 of Article 32 of Article 32 (EU). “We will maintain a risk-based customer due diligence programme that includes steps to identify and verify the identity of clients, beneficial owners, and politically exposed persons (PEPs), and maintain ongoing monitoring of transactions to detect suspicious activity in accordance with the requirements of the Bank’s Secret Act and Finsen Guidance.”
There are thousands of such provisions in the workplace that govern ethics and compliance. The language is often clear, but really getting to know the intent behind these rules and how to apply them in real scenarios is where many employees struggle.
Scenario-based learning for compliance: From phrases to clarity
The eLearning Course brings these provisions to benefits and results through interactive templates separated by knowledge checks. But it still cannot drive meaningful understanding. This is where scenario-based learning comes to the forefront.
So, what is scenario-based learning?
This is a way to help learners apply their knowledge and make decisions in a practical context using realistic, problem-based situations. Enhance engagement, critical thinking and retention by simulating real-world challenges.
When it comes to compliance training, education designers can use realistic workplace situations to teach employees how to recognize, respond and prevent non-compliance. Place learners in practical scenarios reinforce correct behavior in a safe and attractive environment. A scenario could be on any topic, such as handling conflicts of interest, reporting misconduct, or navigation of ethical dilemmas.
Scenario Presentation Style
There are countless ways to present scenarios depending on content, course duration and scope.
Interactive mission
One approach is to embark on learners on interactive missions filled with scenario-based activities. As they navigate each situation and make decisions, they learn appropriate behavior for different contexts. Missions can progress through different levels of difficulty, and learners earn badges, stars, or points as rewards for the correct choice.
Topic-specific scenarios
Another method might be to design a scenario for each topic or subtopic and introduce content after a quiz activity. Depending on your learning goals, you can include or exclude gamification elements such as rewards and points.
Content-first, scenario operator
Alternatively, the course will deliver core content first, followed by a scenario-based knowledge check to enhance understanding.
Complex topic branching scenarios
Branching scenarios are especially valuable for complex compliance topics. In complex compliance topics, the boundary between right and wrong can be a razor. This approach allows multiple variations or variables within a single situation, showing both the right and inappropriate actions. Such an immersive scenario helps build critical thinking skills and prepares learners to handle real situations with confidence and accuracy.
Example scenario: From clause to context
Let’s reconsider one of our compliance clauses. “Employees must disclose personal, financial or other interests that may affect or affect their ability to perform their duties fairly.”
Imagine a scenario in which Alex is reviewing his company’s vendor contracts and realizes that one of the vendors is owned by a close family. This is the perfect setup for scenario-based learning modules.
Build a scenario
Brunch 1
Alex will immediately notify the supervisor of the relationship and retreat from the evaluation process. The supervisor will review the supplier’s suggestions with another team member to ensure fairness and transparency.
Brunch 2
Alex decides not to mention friendship, believing it will not affect judgment. Later, during the approval of the contract, the colleagues question Alex’s fairness, leading to an internal review.
Brunch 3
Alex reveals the relationship, but continues to be involved in decision-making. This creates confusion among team members regarding potential biases and delays the project timeline.
A well-crafted storyline covers situations that employees are likely to encounter. For each branch, both positive and negative outcomes can be explained to highlight the outcome of each selection. You can also incorporate a YES/NO decision flow within each branch to add depth and clarity. This level of detail helps learners understand the finer boundaries between ethical and inappropriate behavior.
Why scenario-based learning works for compliance
In complex compliance areas, static content is often lacking. Scenario-based learning leverages dynamic and interactive situations that help learners understand not only the rules but also the intention behind them. Give employees a safe space to practice ethical judgment and prepare them to make the right decisions when it matters.
Conclusion
The shortest distance to workplace compliance practice is an e-learning course that is driven by scenarios.
By immersing learners in realistic situations and divergent decision paths, you help them to clarify the gray areas and strengthen ethical and policy-aligned decision-making.
It maintains a rich repository of scenario-based and decision-making simulations that simplifies and clarify the intent behind complex compliance clauses and regulations. As a result, more employees may report that training will have a positive impact on work practices, thereby helping to protect the organization from regulatory penalties and reputational risks.
Tesseract Learning specializes in designing innovative learning solutions that enhance workplace safety. Our learning platform, KREDO, helps organizations provide engaging and impactful training that promotes a strong safety culture.
For more information on how to support your organization’s safety training initiatives, see Tesseract Learning.
Tesseract Learning Pvt Ltd
Tesseract Learning works with global organizations to improve employee performance through a variety of digital learning solutions. Solutions include e-learning, mobile learning, microlearning, game-based learning, AR/VR, adaptive learning, and more.
