Regulatory Compliance refers to an organization’s conformity with regulatory and statutory guidelines and specifications relevant to its operations. With developments in the business environment, the pool of regulatory and statutory provisions that an organization is expected to adhere to grows wider. They can be sector specific such as market rules, or non-sector specific, for example, data protection requirements, monitoring of transactions to identify fraud and corporate filing requirements which cut across all sectors of the economy. Non- conformity with regulations could have wide- reaching implications for businesses including damages to brand reputation, monetary fines and costly compliance audit and inspection procedures.
There are also several advantages of proper regulatory compliance to a business. It drives accountability, transparency, objectivity, and professionalism in the workplace, and helps
protect the resources and reputation of a business. As stated above, the scope of regulatory compliance evolves with periodic changes in the operating legal, regulatory, and statutory framework. Every business must create a strategic approach to effectively manage regulatory compliance risks within its organization.
Organisations that are interested in longevity in addition to achieving financial and non- financial objectives must build an effective compliance program that aids in the attainment of effective regulatory compliance. An effective compliance management program should encapsulate planning, readiness assessment, remediation, and monitoring. This would involve an analysis of the legal and regulatory framework, together with an assessment of the systems and processes that impact on the attainment of sound regulatory compliance....more