Common Compliance Issues and How to Tackle It

1. Common Compliance Issues and How to Tackle It? India has always been one of the most ambitious countries with it’s ‘Make in India initiative’. India is also ranked 142 out of 190 countries in the world when it comes to ease of doing business operations according to 2014, the World Bank’s Ease of Doing Business Index. The country is still struggling with the complex compliance requirement which makes it challenging for businesses to operate without getting into some type of legal issues. In this blog, we will take a look at the compliance issues to gain a better understanding. We will also look at some of the ways that can help companies to mitigate common compliance risks and indulge in better risk management and it is best to start with the basics. What are Compliance Issues? Compliance issues are situations where organizations or individuals fail to follow the rules and regulations that a business established in India is supposed to follow. These issues can be in various domains such as finance, taxes, data safety as well as health guidelines.

2. What is Compliance Risk? Compliance risk refers to the consequences that the company might face if the company fails to comply with the various laws and regulations that are supposed to be followed. The consequences and most common compliance risks might include legal penalties or regulatory action. Corporate compliance or regulatory compliance is simply a set of rules and regulations such as privacy laws, and occupational safety that a business has to follow in a timely manner. These set of standards are set to ensure ethical practices in business to make certain that everyone is treated fairly, and avoid environmental damage. Importance of Compliance in Business India has numerous laws and regulations to ensure that every person, entity, associates, and all the stakeholders of the business gets fair treatment. In addition to that, there are laws and regulations to ensure business operations and services are not harming people, privacy, the environment, natural resources, occupational safety, health, and much more. It’s one of the crucial responsibilities of the business to ensure regulatory compliance by following all the guidelines mandated by the regulatory bodies. Failing to keep up with the regulatory environment and finding itself in a situation of non-compliance costs business much more than legal penalties and the potential losses from lawsuits. There is a loss of trust in the market if a company gets a reputation that it does not follow ethical practices. Building that trust again takes a significant amount of time and effort. Meanwhile, companies might suffer massive losses if they fail to mend that trust with the vendors. The failure to keep up with compliance also has major financial risks attached to it. These can be hefty penalties or costly lawsuits for an organization. The reputation damage that comes along with the legal penalties and regulatory actions also affects your customers. It damages the brand image and often leads to a major reduction in the market share. If you do not follow legal compliance related to employment such as a healthy work environment and minimum wages, it is likely to cause a lack of employee loyalty, higher

3. turnover, lower productivity, and higher recruitment costs. That makes it essential to process risks strictly & follow compliance policies. Read the full article: Compliance Issues