"You must learn from the mistakes of others. You can’t possibly live long enough to make them all yourself" Sam Levenson
It is complex, wide ranging, expensive and constantly changing. Welcome to the legal and regulatory compliance environment we now inhabit. Welcome to the perfect storm, and the four weather fronts that are driving it on:
- Protecting the public. Financial system stability, treating customers fairly, data privacy and a host of other rules aim to protect the public from harm at the hands of business.
- Defeating criminals. From drug dealers to terrorists, to those involved in bribery and corruption, regulation is on the books to slow them down.
- Achieving public policy goals. Or, put another way, political goals. Sarbanes-Oxley, bank lending guidelines, executive pay rules and others are heavily driven by the political agenda.
- Protecting lifestyle choices. ‘Shadow’ self-regulatory regimes govern businesses who wish to operate under Islamic principles or achieve environmental sustainability. The consequences of non-compliance become greater as companies make these choices a central element of their customer appeal.
It is inevitable, in whatever industry you operate, that at least one of these regulatory fronts will impact your organisation. In many industries all four do, with varying international flavours to contend with. Whilst the cost of compliance can be significant the consequences of non-compliance can be greater still. Dealing with a regulatory investigation, even if it proves innocence, has an immense impact on time and resource. If guilt is proven, then expensive sanctions are common and reputational damage inevitable.
Every organisation, large or small, needs to know the answer to four questions:
- What regulatory rules are we specifically subject to?
- What gaps exist in how we comply with those rules?
- What is my action plan for fixing those gaps?
- How do I stay on top of changing regulation to prevent new gaps emerging?
To remain competitive they should also be asking an additional question:
- How much more efficient could we be in achieving compliance?
Kingston Smith Consulting can help you navigate compliance risk, from advice on specific rules to broad support in operating efficient compliance regimes. We have the expertise to help you avoid mistakes.
