There are many benefits of a compliance program such as improving organizational culture, protecting the company’s reputation, and improving work productivity and employee engagement.
If it does not have it, the company is exposed to legal risks; that is, sanctions, fines, imprisonment, disqualification of subsidies or product seizures; financial risks such as loss of investor confidence or decrease in potential profits; business risks such as liens that would prevent the ability for the business to operate properly; and an impact on reputation, which causes loss of confidence, decreased employee morale and a drop in work productivity.
Basically, neglect of an obligation will definitely result in unpleasant consequences, regardless of how serious or light the violation is. In the modern investment climate, any violation can result in serious consequences which primarily reduce the level of public trust in the company concerned. Risks will always exist but by implementing a compliance system, they can be reduced as much as possible.
What are the risks?
The main economic crimes in companies with the highest incidence in our country are:
Asset misappropriation
Bribery and corruption
Fraud in the purchasing process
Misuse of insider information
Accounting fraud
Cyber crimes
This panorama makes it clear why implementing a compliance program
The response of organizations to economic crimes has to be comprehensive; That is, beyond focusing on a single aspect, preparation to confront crimes of this nature must consider components of deterrence, prevention, detection, investigation, and punishment.
Main benefits of a compliance program
Compliance programs help mitigate risks and strengthen prevention and the resilience of companies. It is important for organizations to know the specific risks that threaten the business, from the environment in which they operate to the industry, business partners, and changes in regulatory policies.
Therefore, one of the alternatives is to resort to legal consulting, whose experts will be able to guide the organization in the best compliance practices. Finally, it is important to highlight that for the program to be effective, there must be participation from the directors of regulatory compliance, human resources, general director, general council, audit, director of finance, director of operations, director of risks, and communicate the messages to the entire company so that each member is aware of the practices and behaviors that the company needs to reduce risks.
Regulatory updates are the backbone of any compliance system
The compliance system, whatever it is, will no longer be relevant one day because of the changes that continue to occur. Every year thousands of industry standards, regulations, and laws change around the world and any compliance system that is not in line with these changes will no longer be effective or in more general terms, no longer relevant.
Therefore regulatory update service is a must for any company to protect them from the possibility of not complying with their obligations and fortunately, Nimonik inc. makes everything easier. Nimonik is a compliance software development company based in Canada and has representatives in several countries. Broadly speaking, this is a global company with many high-level clients such as Coca-Cola, Adidas, Caterpillar, and Bayer.
As a compliance software development company, Nimonik ensures that software updates are carried out regularly in line with changes that occur in external obligations, which include all kinds of regulations, standards, and laws that cover an industry.
By implementing a compliance program that is supported by regulatory update services, each company can significantly reduce the risk of neglecting its obligations. Nimonik ensures that all obligations, both internal and external, can be integrated to be managed in an established and regularly updated compliance system.
