Regulatory compliance is the adherence that an organization has towards the laws, rules, policies and regulations in order to aspire and ensure that the organization is aware and follows what the Jurisdiction says at their place of business. A lack of regulatory compliance can lead to many unfortunate situations with you and your business. You may incur fines, lawsuits or may even be forced to shut your business down.
Regulatory Compliance often depends on the location of the business rather than by the industry.
A business in the present-day faces a lot of challenges while setting up their regulatory compliance protocols due to the increasing number of regulations and needs for operational transparency. This where regulatory compliance experts like JAXA help out business so that the need for necessary governance requirements do not clash with the daily operational activity draining both the time and resources of the business.
Why Do You Need Regulatory Compliance?
Regulatory compliance is mandatory ie. there is no option to not be compliant. Therefore being in line with the regulations is extremely important. The certifications and compliances of a business are all a matter of public record. Following are the reasons why you need regulatory compliance:
Being a known compliant business will lead your clients and prospective clients to inherently trust you as your business comes with a ‘stamp of approval’ from the government.
Following all regulatory compliance protocols ensures that the government or any regulatory body will implicitly or explicitly associate with you as they know that according to their rules you are clean and transparent.
Not following compliance rules has a high price. You may be subject to a large number of fines and even imprisonment in some cases if found guilty. Not to mention the consequences of such an event will be a loss of goodwill and state co-operation, both of which has a substantial financial impact.
Having robust regulatory compliance set up helps to mitigate risks that a business might face in its daily operations. Being compliant ensures that a financial audit won’t throw up an unknown component that may lead to unwanted legal exposure. Also already being compliant is a cornerstone of any dynamic risk management strategy.
If your business is looking for investors or a large line of credit, any proper due diligence report will state the nature and state of compliance in your business. Financial institutions and investors will decide on their investments or loans only after looking and analysing such reports. Having a compliant business will ensure that investors look to your business as a viable place to invest without much worry.
If your business looks for other business to invest, even then will there be a due diligence report by the business that is being invested on will do. Being compliant will provide the assurance of the bonafide nature of the investment.
Regulatory compliance practices help your business to be optimized by lowering weak areas and thus reducing vulnerabilities. Usually, an up to date compliant company has the usual signs of good health, as it has all its accounts in order.
Promoting a work culture that promotes regulatory compliance practices ensure that your employees in all different positions are working towards a goal that is sustainable in the long run. Regulatory compliance practices also promote a safe, healthy and happy workspace in cases where such regulations promote workers safety, wage security, insurance, etc.
Anticipating regulatory trends is important to ensure that the protocols are integrated well so that overall efficiency is always on the way up. Emerging regulations also dictate and influence business direction and decisions. Implementing such changes in time is a sign of adaptability and key in the long run.
By now it is well established that regulatory compliance is mandatory and essential to any business in the long run. However, the sheer number of regulations is very intimidating, challenging and drains a lot of resources. Thus, you have experts like Jaxa Chartered Accountants who are with you every step of the way while managing your regulatory compliance practices. Contact us now to update your compliance practices and be worry-free.