Regulatory Compliance Ver. Training Pack 2

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HSE Regulatory Compliance HSE Regulatory Compliance Verification Training PackVerification Training Pack

Module 2 for HSE Advisors & Module 2 for HSE Advisors & Line HSE Focal PointsLine HSE Focal Points

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Training Pack Module 2Training Pack Module 2

As part of its Business Principles and Policies, SPDC is required As part of its Business Principles and Policies, SPDC is required to comply with all the relevant HSE Laws and Regulations enacted to comply with all the relevant HSE Laws and Regulations enacted by the Federal, State and Local Governments of Nigeria. by the Federal, State and Local Governments of Nigeria. In addition to this, SPDC is required to comply with some In addition to this, SPDC is required to comply with some international laws, conventions and protocols to which Nigeria is international laws, conventions and protocols to which Nigeria is signatory; and all limits, criteria and other requirements signatory; and all limits, criteria and other requirements subscribed to by SPDC, SIEP and the Shell Group, including subscribed to by SPDC, SIEP and the Shell Group, including international standards where applicable. international standards where applicable.

Introduction:-Introduction:-

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WHAT IS COMPLIANCE ? WHAT IS COMPLIANCE ?

AN ACT OF YEILDING

(PROCEDURES,POLICIES,STANDANDS ETC)

SUBMISSION (LAWS,ACTS,DECREES ETC)

AGREEMENT (PROTOCLOS,CONVENTIONS,TREATIES ETC)

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DEFINITION

Statute, ordinance, judicial decision, executive order, or a regulation having the force and effect of law, that determines the legal standing of a case or issue.

Applicable legislation are Statutes/regulations that are relevant or peculiar to a particular operation.

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WHY COMPLY ?

♞TO PREVENT ACCIDENTS/INCIDENTS IN SEPCiN OPERATIONS

♞TO PROTECT OUR ENVIRONMENT, ASSETS AND PEOPLE

♞TO DEMONSTRATE TRANSPARENT AND EFFECTIVE CORPORATE

GOVERNANCE

♞PRUDENT FINANCIAL MANAGEMENT

♞UPHOLDING OUR REPUTATION

♞MAINTAINING OUR LTO

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•Keeping an overview of HSE Compliance within SEPCiN.

•Ensuring that all facilities and Projects meet the regulatory requirements and possess necessary permits / LTO’s within the context of the law.

•Keeping the company abreast of situations that may lead to withdrawal of LTO.

•Facilitating the application for & acquisition of required permits, exemptions & waivers for SEPCiN production facilities & processes.

•Maintaining close liaison with Govt. statutory & regulatory bodies to negotiate in areas of non-compliance based on available objective evidences & best practices to seek for dispensation for non-complying items in order to sustain SEPCiN LTO.

•Acting as SEPCiN corporate focal point for regulatory compliance in reporting to DPR and other Regulatory bodies.

•Maintaining contact & liaison with Regulatory bodies and the OPTS on issues relating to H, S & E in the O&G industry.

Responsibilities of the HSE Compliance Team

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• Reporting to LTO Forum, HSE-SC, QBR & other such meetings on the compliance status of the company

•Make the Functional Managers aware of HSE Regulations applicable to them. Make the Functional Managers aware of HSE Regulations applicable to them.

• Provide the Functional Focal Points with detailed knowledge of the HSEProvide the Functional Focal Points with detailed knowledge of the HSE Regulations applicable to them.Regulations applicable to them.

• Organize meetings with Regulators and Execution Party May Participate.Organize meetings with Regulators and Execution Party May Participate.

• Providing expert support to the line for ALL Regulatory compliance issues.

• Plan and conduct compliance verification exercise of all line teams and Plan and conduct compliance verification exercise of all line teams and monitor action close out status.monitor action close out status.

• Coordinates Regulator inspections, drills(planned and ad-hoc) etc and Coordinates Regulator inspections, drills(planned and ad-hoc) etc and participate in the events.participate in the events.

• Deliver Awareness lectures on applicable legislation to the line on demandDeliver Awareness lectures on applicable legislation to the line on demand

Responsibilities of the HSE Compliance Team Cont.

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Key Regulatory Bodies

•DPR (Department of Petroleum Resources)

• FMEnv (Federal Ministry of Environment)

•NAPIMS (National Petroleum Investment Management Services)

• NCAA (Nigerian Civil Aviation Authority)

• NNRA (Nigerian Nuclear Regulatory Authority)

• NOSDRA (Nigerian Oil Spill Detection Response Agency)

• ITU (International Telecommunication Union)

• OPTS (Oil Producers Trade Sector)

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Applicable Legislation

SOURCES

NIGERIAN STATE LEGISLATION

FEDERAL NIGERIAN LEGISLATION

INTERNATIONAL LEGISLATION

Register of critical Legislation and HSE Compliance Procedure : HSE document centre.

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OVERVIEW OF HSE REGULATORS & ISSUES COVERED BY OVERVIEW OF HSE REGULATORS & ISSUES COVERED BY REGULATIONSREGULATIONS

DPR (Department of Petroleum Resources)

Organisation:

Regulations:

EGASPIN

MOSR

(Mineral Oil Safety Regulations)

(Environmental Guidelines and Standards for the Petroleum Industry in Nigeria)

RegulatorsMain Tasks:

• Develop and issue Regulatory Requirement on behalf of the Nigerian Government related to Health, Safety and Environment.• Monitor and Confirm that the Nigerian Government Regulations are adhered too• Issue Permits and Waivers as deemed necessary

NNPC

DPR- WestWarry

DPR Head QuartersLagos

DPR- EastPort Harcourt

DPROthers

EIA (Environmental Impact Assessment)

PA (Pipelines Act)

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Some Areas covered by Some Areas covered by EGASPINEGASPIN by Department of Petroleum Resourcesby Department of Petroleum Resources

Use of Radioactive Source

Monitoring of radio-active substances

Reporting of Radioactive sources to DPR

Identification of Hazardous waste/materials

Transportation of Hazardous Waste

Reporting of Hazardous waste to DPR

Waste Management (Release inventory/segregation)

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Some Areas covered by Some Areas covered by MOSRMOSR by Department of Petroleum Resourcesby Department of Petroleum Resources

Duties of licensees and lessees Appointment of competent persons Chemicals management (SHOC card) Audiometric test Display of Regulation Personnel protective equipment Injuries and first aid Fire protection e.t.c.

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Areas covered in some Applicable Areas covered in some Applicable legislationslegislations

Environmental Impact Assessment Precaution to take before starting a project

Application for EIA

Exception for EIA

Identification of Environmental Issues

Requirements for EIA

Minimum content of EIA

Prohibition to carry out a project.

Penalty/fine

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Areas covered by the Pipeline Act 2003

Permit to Survey Pipeline route

Application for license to construct and operate a Pipeline

Pipeline design & Standard

Construction Of pipeline

Commencement of inspection and testing of a pipeline

Operating and maintenance guidelines

Procedure for upgrading pipeline or changing substance transmitted by pipeline

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NCC Act 2003 C 130-134 & 135-137 Approvals ( Licenses, Contractor and Equipments) Safety of Equipments Competency of Installers and service providers

Protection of people & Environment

Some Areas covered by Some Areas covered by NCCNCCby Department of Petroleum Resourcesby Department of Petroleum Resources

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FEPA – FMEnv & UDFEPA – FMEnv & UDFederal Ministry of Environment & Urban Dev.Federal Ministry of Environment & Urban Dev.

Organisation:

Regulations: Environmental Impact Assessment Regulations


• Develop and issue Regulatory Requirement on behalf of the Nigerian Government related to need for Environmental Impact Assessments.• Review and approve EIAs conducted• Issue Permits and Waivers as deemed necessary

FMEnv- WestWarry

FMEnv Head QuartersLagos

FMEnv- EastPort Harcourt

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FML (FML (Federal Ministry of Labour)Federal Ministry of Labour)

FML- WestWarry

FMLHead QuartersAbuja

FML EastPort Harcourt

FML- LagosWarry

Organisation:

Regulations: Factories Act


• Develop and issue Regulatory Requirement on behalf of the Nigerian Government related to need for Factories• Issue Permits / Certificates to operate a Factory

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Some Areas covered by Factories Act

The Powers of the Director of Factory

Vessel containing dangerous liquids.

Training and supervision of in-experienced workers

Hoists and lift

Lighting & Ventilation in a factory

Overcrowding in the factory

Cranes and other lifting machines

Safe means of access and safe place of employment

Safety provisions in case of fire e.t.c

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NAPIMSNAPIMSNational Petroleum Investment Management ServiceNational Petroleum Investment Management Service

NAPIMSHead Quarters LagosOrganisation:

Regulations: Contract Regulations


• Develop and issue Regulatory Requirement on behalf of the Nigerian Government related to Civil Aviations.• Conduct verifications to confirm that Regulations are fully implemented.

Requirements covers:• Need for registration of all contractors with NAPIMS• HSE in Contracts

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NCAANCAANigerian Civil Aviation AuthorityNigerian Civil Aviation Authority

Organisation:

Regulations: NCAA Act


• Develop and issue Regulatory Requirement on behalf of the Nigerian Government related to Civil Aviations.• Conduct verifications to confirm that Regulations are fully implemented.

Act covers:• Licenses• Height of Towers• Lighting requirements in towers (120m lights at the 4 base and top while 60 m just)

NCAA- WestWarry

NCAA Head Quarters Lagos

NCAA- EastPort Harcourt

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NNRANNRANigeria Nuclear Regulatory AuthorityNigeria Nuclear Regulatory Authority

NNRA- WestWarry

NNRA Head QuartersLagosOrganisation:

NNRA- EastPort Harcourt

Regulations: Nigeria Basic Ionizing Radiation Regulations


• Develop and issue Regulatory Requirement on behalf of the Nigerian Government related to storage and use of Radiation Equipment.• Monitor and Confirm that the Nigerian Government Regulations are adhered too• Issue Permits and Waivers as deemed necessary

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Areas covered by Areas covered by NNRANNRA by Nigeria Nuclear Regulatory Authorityby Nigeria Nuclear Regulatory Authority

Use of Radioactive Source

Monitoring of radio-active substances

Reporting of Radioactive sources to DPR

Ensuring the Registration of site that Radio active sources

are used.

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NOSDRANOSDRANigerian Oil Spill Detection Response AgencyNigerian Oil Spill Detection Response Agency

NOSDRA- WestWarry

NOSDRA Head Quarters LagosOrganisation:

NOSDRA- EastPort Harcourt

Regulations: Environmental Spill / Clean-up Regulations


• Develop and issue Regulatory Requirement on behalf of the Nigerian Government related to detection and response to oil and chemical spills.• Conduct verifications to confirm that Regulations are fully implemented.

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Other RegulationsOther Regulations

International Telecoms Union (ITU) Regulations

National Civil Aviation Authority (NCAA)

Standards Organisation Nigeria(SON)

DEP/OEM (Practices and Equipments standard/manual)

BCP (Group Guidelines, Rules & Regulation)

ICTU ACTS/NEMA ACT (Still in its development/Draft state)

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Applicable LegislationApplicable Legislation

Where do you find applicable legislation?URL

https://sww-knowledge-epg.shell.com/knowtepg1/livelink.exe?func=ll&objId=3764957&objAction=browse&sort=name&viewType=1

OR

Go through the document centre via the HSE Web site. Click on the following link HSE Assurance & Compliance HSE Compliance

International & Federal legislation or State legislation

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OPTSOPTSOil Producer Trade SectorOil Producer Trade Sector

Members of OPTS participate in review of regulations impacting onthe oil producing companies in Nigeria.

Several Groups have been formed to study different issues such as:-

Production Water Disposal Air pollution Gas Flare Down NESREA

Benchmark and disseminate Best Practice

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Oil Producing Trade Sector (OPTS) StructureOil Producing Trade Sector (OPTS) Structure

Executive Management CommitteeSPDC Rep: Basil Omiyi

Environmental & Safety CommitteeSPDC Rep: Carol MacauleySNEPCo Rep: Justice Derefaka

Gas Flare Down Working GroupJV Rep: Abdul YammamaSPDC Rep: Catherine Osharode

Production Water Disposal Study Working GroupJV Rep: SPDC Rep: Carol Macauley

Air Quality Study Working GroupJV Rep: SPDC Rep:Abdul Yammama

NESREA Working GroupJV Rep:SPDC Rep: Carol Macauley

Legal CommitteeEPG Rep: TBA

External Stake Holder CommitteeEPG Rep: TBA

Others

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HSE Regulator Focal Points:

No

HSE Regulation Focal Point

1 MOSR All Members Of HSE Compliance Team

2 EGASPIN All Members Of HSE Compliance Team

3 FMEnv Remi

NCAA Lucky

4 NNRA Abdul

5 NOSDRA Caroline

6 NCC Tele

7 NAMA Lucky

8 Oil and Gas Pipelines Regulations

Tele

9 NMA Chituru

10 FML Caroline

11 Explosives Act Chituru

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Strategy and Plan For Compliance Verification in 2009

•Identify Line Compliance Focal Points

•Develop Training Packages.

•Conduct Regulatory Compliance Training for Identified Line Focal Points.

•Support Identified Focal Points in conducting First time verification.

•Line Focal Points to send Verification Report to HSE Compliance Team for Quality Checks

•Carry out Risk based Priority Compliance Verification Spot Checks with planned schedule for the Line.

•Report NC’s to Line Manager/ TL and Monitor close out

•Line loads NC’s into Fountain and ensure close out.

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Steps involved in Conducting Reg. Compliance Steps involved in Conducting Reg. Compliance verification/ Audit.verification/ Audit.

What is Reg. Compliance Verification:-What is Reg. Compliance Verification:-

Compliance Verification Exercise is a monitoring process as it seeks to assess how a team or facility is complying with the regulatory requirements guiding its operations at any point in time. Since new regulations will constantly be evolving, the steps set out here would be considered generic irrespective of which regulation is being monitored or verified for compliance.

Planning

The planning stage shall involve preparation of tracking matrices or such other simplified checklists for the Regulations to be verified and the publication of an agreed verification schedule.

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Tracking Matrices:

• At the commencement of each cycle (the year), the Principal HSE Compliance Advisor shall advise line teams on what Regulations to verify for that year. The criteria for choosing the Regulations to be verified will be based on the business needs and objectives as well as the industry’s critical concerns on Legal / Regulatory compliance for that year.

• Any new Regulation shall also be considered top priority with respect to verification in order to ascertain the company’s baseline compliance status with its requirements.


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•Compliance Verification ScheduleA verification schedule, which details the teams to be verified, and period of verification shall be published by first quarter of every year.•Conducting the AuditOpening meeting It is mandatory that as a minimum, the HSE head of the Auditee or an appropriate representative be present at the meeting. The line team to be verified shall be responsible for all issues of logistics associated with the successful completion of the verification exercise. •Verification exercise:The actual verification shall commence with a document review where elements of the Regulatory requirements applicable to the facilities will be agreed. Past verification reports and closeout status shall also be assessed at this stage. Site visits and interviews of personnel shall be used to obtain evidence of the teams’ activities to assess their level of compliance with the requirements.


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Report of findingsCloseout meeting• Agreement by the Asset, Service or Line teams shall be expected on appropriate corrective actions to address the non-compliances identified in a timely and cost effective manner.• Attendance is mandatory for Asset or Line manager, his HSE Team Lead and other key team members at the close out meeting to challenge and accept the non-compliances raised. • Also Asset or Line Manager shall commit to the corrective action proposed for the close out of the non-compliances. Complete Verification report• This shall comprise a word document summarizing the findings of the audit, the completed tracking matrices reflecting the verified compliance status and non-compliance resolution sheet. (Appendix 1)


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•Stating the details of the non-compliance as observed in the facilities visited, agreed corrective action and time lines for implementation of the corrective actions.

•In summarizing the findings of the verification, all relevant information including results of past verification exercises should be stated to give an indication of trend.

•Draft copies of the report shall be published for comments from the asset teams at least two weeks after the verification exercise while final copies shall be published maximum three weeks after the exercise.

Steps involved in Conducting Reg. Compliance Steps involved in Conducting Reg. Compliance verification/ Audit Cont.verification/ Audit Cont.

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• Corrective Action TrackingAll non-compliances and the agreed corrective actions and dates shall be entered into the SPDC Compliance Verification Resolution Form and duly endorsed by the Asset Owner or his representative (HSE Lead) and the Location Lead HSE Compliance or his representative (Compliance Advisor). This is the commitment document that all the non-compliances shall be addressed at the times specified by the action parties.

• Asset Owners may include remarks to indicate possible constraints to closeout actions but both signatories must agree on this.

• Teams shall avail the non-compliance items and the close out dates into the Fountain Impact database system for tracking.


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Compliance status Report

• The Compliance Status report for the Company shall be published, for all verified Regulations, Half yearly by the HSE Compliance Team. The report will comprise of the compliance status from all the teams verified as at the time of report publication and the status of closeout actions.

• It shall also include updates on Regulatory issues across the company and corporate actions on addressing some company-wide non-compliance issues.

• This report will also form the basis of feedback from the Line teams.


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Adequate commitments and human resources are critical factors in the success of the internal Regulatory Compliance verification process. It is therefore essential that the regulatory compliance verifiers/auditors/inspectors receive as a minimum, appropriate training, either as auditors/ internal auditors or through a programme of shadowed and observed auditing/inspection under a lead auditor in line with EP2005-0180 and associated Work Instructions. A satisfactory completion of a minimum of 3 of these verification audits would guarantee confirmation as a competent compliance inspector by the HSE Manager.

Competence Requirement for compliance inspectors

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Application of Skills and Personal Judgment

Unlike other types of audits where the auditor could use his judgment and audit skills in grey areas, statutory compliance audit is specific and only subject to legal / regulatory control. As such, witnessed evidence shall either be compliant or non-compliant. Where there is a disagreement between the Auditee and Auditor, the understanding of the Regulators shall apply.


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“USE OF HSE REGULATORY TRACKING MATRIX”

Objective

To familiarize participants with the

component and the use of HSE

regulatory tracking Matrix

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WHAT IS A TRACKING MATRIX ?

HSE Regulatory tracking matrix is a tool used in

tracking percentage compliance of a given team in

respect of a particular regulation e.g

Environmental Guidelines and Standard for the

Petroleum Industries in Nigeria (EGASPIN), The

Mineral Oil Safety Regulation (MOSR), Factories

Acts, Petroleum Acts e.t.c.

The Tracking Matrix has three key columns, they

are the Do, Have and Report columns. Each

column is formatted and will automatically change

when inputted with a C for complying or an NC for

Not complying,while N/A for not applicable will not

affect the percentage compliance result of the

team.

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The DO ColumnThe DO Column The Do column requires the team or individual to carryout a particular or set of

action.

The following are examples of a Do statement from some applicable regulation

• Licencee/Leasee shall institute planned and integrated environmental

management practices (EGASPIN)

• Appoint, in writing, a person to be a manager who shall take continual charge

of all the operations authorised by the licence or lease (MOSR)

• Every industry shall install anti-pollution equipment for the detoxification of

effluent and chemical discharges emanating from the Industry (FMEnv)

• All agencies, institutions must apply in writing to the FEPA before embarking

on a project, to enable an environment assessment to be carried out at an

early stage (EIA)

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The Have ColumnThe Have Column

The Have column requires the team or individual to possess or acquire a

particular or set of things

The following are examples of a Have statement from some applicable regulation

• Licencee/operator shall have an environmental management system manual

(EGASPIN)

• The manager shall ensure that workers are provided with the appropriate

hearing protection if noise levels are equal to or greater than 85 dBA for an 8

hour time weighted average TWA.(MOSR)

• No person or body corporate shall engage in the storage treatment and

transportation of harmful toxic waste within Nigeria without a permit issued by

the Agency.(FMEnv)

• A certificate will be issued by the relevant Agency after completion of an EIA.

(EIA)

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The Report Column.The Report Column. The Report column requires the team or individual to inform or

notify the regulators of an activity or set of activities.

The following are examples of a Report statement from some applicable

regulation

• All spillages of crude oil/chemical/oil products shall be reported to the Director

of Petroleum Resources, in accordance with the oil spillage/notification

reporting formats, A, B and C.(EGASPIN)

• Operators to make available to the DPR results of conducted Annual

Audiometric test for personnel who work in high noise areas.(MOSR)

• Industries must inform Agency of toxic, hazardous and radioactive substances

on their Premises, discharged during production.(FMEnv)

• Incase of a change in respect to the particulars set out in the application,the

the occupier should inform the DOF in writing..(FA)

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Example of a tracking MatrixExample of a tracking Matrix

Microsoft Excel Worksheet

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Calculation for Percentage Compliance withCalculation for Percentage Compliance with

Formula:

% Compliance = number of complied requirements X 100

Total number of applicable requirements

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Regulatory Compliance Ver. Training Pack 2

Documents