The modern corporate era is full of compliance challenges put in place by different governing bodies. Today, businesses are not limited to particular geography but have operations across the globe. This makes it even harder to comply with various laws and regulations put in place by different institutions. This ever-evolving landscape brings in new challenges now and then. Not complying with corporate compliance laws can lead to heavy fiscal and legal penalties. Corporate compliance solutions can be a lifesaver in this regard. Read on to learn more about corporate compliance and related solutions.
What does corporate compliance entail?
Corporate compliance can be broadly explained as a set of rules and regulations that help govern an organisation and lead people effectively. Corporate compliance policies help to ensure that a company is adhering to all applicable laws and regulations. This discipline can be divided into two segments, i.e., internal corporate compliance and external corporate compliance. Now, external compliance includes the rules set by the government for a particular business industry that need to be followed. For example, preparation of quarterly financial statements by all publicly traded companies. Internal compliance policies layout rules and regulations for how people in the organisation should function.
Why corporate compliance is important?
Now that we have a fair idea of what corporate compliance entails, let’s find out why it’s important in today’s business world. There are various types of risk associated with a business, and compliance risk is a part of the parcel. Failing to comply with the existing laws and regulations can legal and financial challenges for a business. Here are some key compliance-related risks that make compliance important for most companies today.
- Corruption risk
Failing to comply with the existing internal corporate compliance guidelines can increase the chances of corruption. These malpractices can include bid-rigging, bribery, money laundering, etc.
- Reporting risk
Companies have to submit financial reports to different stakeholders to provide them with a summary of a business’s financial performance. Not having a compliance solution in place can add to the reporting risk.
- Data protection
Various compliance guidelines highlight the need for disclosing any breaches of privacy by the organisation. Not adhering to these guidelines can add to the data protection risk.
- Environmental, health and safety risks
Concerns related to environmental hazards, personal health and safety at the workplace are taken very seriously. Not obeying rules set in place by regulatory bodies can be harmful to the environment and workers both. This can increase the risk for businesses.
- Employment risk
There are several concerns related to workplace practices that are addressed by the internal compliance guidelines. It ensures that ethical workplace practices, including fair compensation, anti-harassment, anti-discrimination, are in place to safeguard workers’ interests.
How do corporate compliance solutions help?
Failing to adhere to the compliance guidelines put in place by the internal or external authorities can lead to major consequences for firms. Compliance-related matters require in-depth legal knowledge related to the policies and procedures. It’s recommended to opt for corporate compliance solutions that can help you adopt these policies and procedures to fulfil your regulatory obligations. Let’s look at some important corporate compliance solutions that can help your business in overcoming compliance-related risks and challenges.
- Risk management system
Having necessary preventive measures in place to deter and ward off malpractices including corruption, cyber-theft, moneylending etc. is crucial for businesses. An effective workplace compliance solution can help to assess different business practices and the associated risks. It can help to measure the likelihood of the occurrence of these risks, which in turn, can be used to create a robust compliance strategy.
- Continuous control monitoring
Continuous control monitoring solutions entail a set of technologies that are deployed to reduce the risk for businesses by leveraging real-time monitoring techniques. Some of the important controls monitored are related to system configurations, authorization, access, etc.
- Other corporate compliance solutions
Several other compliance solutions cover a diverse range of managed services. This can include e-communication reviews, advertisement and marketing content reviews, distribution compliance checks, monitoring code of ethics, social media compliance, etc. Hiring a reliable compliance solution provider in India can help you ease your compliance worries cost-effectively. They take a comprehensive approach to provide compliance-related solutions and employ the best talent for the job.
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