Any business organization is an amalgamation of different units and departments and each of these units must work together to become more profitable. Each unit is meant to perform specific tasks and has got their own rules and regulations which has to be followed accordingly. Be it establishing a business unit or financial restructuring of an established organization, it involves a lot of legal procedures which should not be ignored.
Now, it turns out to be extremely important that the steps taken at this point need to be supervised by a business entity so as to make sure that the tasks which are being performed not only match with the set standard but are also legally correct. This is where the term ‘Regulatory Compliance’ and its management comes into the picture.
Let’s understand it in detail.
What Is Regulatory Compliance?
The word’ Regulatory Compliance involves two words that hold an in-depth meaning. Regulatory refers to the governing body that authorizes the legal laws and compliance simply mean to follow the set standards. It is applicable to any and every business organization dealing in all of the business sectors. It is one of the core responsibilities of any company to follow all the rules and regulations of the jurisdiction. In short, we can say that regulatory compliance is a must for any company so that it can keep track that all the rules and regulations are followed in order to achieve the ultimate organizational goal.
Domains Covered under Regulatory Compliance
The compliance covers different domains of a business organization. It is not limited to a specific level and goes beyond in covering a specific area of origin, territory, and country etc. where the business transactions take place. A few of the domains are bellows:
- Hiring Practices
- Health Benefits and Employee Privacy
- Work Environment
- Wages and Hour
- Workplace Safety
- Recruitment and Retention
- Employee Discipline and Termination
Now, let’s have a look at the requirements to initiate the regulatory compliance followed by the reasons for which regulatory compliance management turns out to be essential.
Requirements for Regulatory Compliance
As it is essential for all companies, the requirements for regulatory compliance turns out to be industry-specific. Let’s have a look at the few essentials.
- Annual Statement or Report
- Franchise Tax
- Fair Labour Standards Act
- Physical Entrance Policies
- Virtual Access
- Password Protection
- Security Updates
- Virus Protection
- Emergency Response
- Business Continuity
- Media Removal
- Risk Analysis
- Audits and Reviews
Importance of Regulatory Compliance Management
As discussed above, the rules and regulations play a very important part for any business organization in any domain. Now, the management of these compliances turns out to be essential for the following reasons:
- Provides a legal framework to enhances business relationships
- Enhances the litigation process regarding laws and policies
- Understanding of foreign laws is a must if the business entity deals with other nations
- Helps to deal with risk management
- Improves the overall business health
Thus, you can see that how important regulatory compliance turns out to be. In order to run a company successfully, you can’t overlook or ignore these necessities. Dealing with foreign nation again alters the requirements. The best you can do is to have a consult with compliance consulting firms that hold the updated information and helps you to deal with your company compliance policies. The sooner you deal with it, the better.
In order to understand more about Regulatory compliance and how it can help the growth of your business, you can contact the experts at JAXA Chartered Accountants. JAXA will provide in-depth knowledge to you about the Regulatory compliance requirement of your business and can also provide you with the best possible solution for your business.
Feel free to contact us to initiate further steps. We’d be glad to assist you.