By Tolulope Adigun
Different industries have different levels of regulation. In the Nigerian economy, the financial sector is the one with the most regulations. Globally, the compliance industry is always changing. The main issue that many businesses are facing is a lack of knowledge regarding the possible consequences of non-compliance. In any firm, a robust and encouraging compliance culture is essential for success. Within an enterprise, ethical behavior can be communicated through compliance.
Everyone is accountable for compliance; compliance professionals are not the only ones. A company’s bottom line is frequently perceived as being threatened or burdened by regulatory compliance. Within the realm of business, rules and regulations are sometimes perceived as onerous, costly, and cumbersome.
Ensuring that the appropriate actions are taken at the appropriate time and in the appropriate manner is known as compliance. In addition, compliance refers to actions taken to guarantee that businesses follow laws and industry regulations, keeping in mind that the government is at the top of the regulatory hierarchy.
The compliance function makes sure that regulations are followed, keeps an eye on how the regulatory environment is changing, and notifies relevant parties of any new or amended regulations. It ensures conformity with regulatory requirements.Therefore, it is important to integrate a positive compliance culture into the organization’s daily operations.
When compliance is ingrained in an organization’s culture, it gives them the flexibility and productivity needed for long-term success.
Our capacity to positively impact others is essential to the success and efficacy of the initiatives we oversee as compliance professionals.
We need to be continuously compliance conscious in our everyday lives as the cost of complying with regulations is nothing compared to the cost of fines incurred because of non-compliance.
What distinguishes compliance from Risk Management and why is it that you must comprehend this distinction?
Compliance is a reactive measure because organizations often need to respond to changes in laws and regulations as they occur. Risk management, on the other hand, is a proactive initiative that helps organizations prepare for and respond to potential risks before they occur.
Compliance often requires organizations to follow a “check-the-box” approach to determine whether the business is acting in accordance with the risks. the law Risk management is more strategic and focuses on minimizing the potential damage of a crisis.:
Compliance is about ethical business practices and ensuring that an organization does what it is supposed to do, while risk management focuses on minimizing the potential effects of a crisis. . crisis
There is no doubt that compliance and risk management are closely related. Both processes are an important part of business strategy. However, there are striking differences between them.
Tolulope Adigun,
CAMS,CRCMP,CISRCP,CC(GRC)P,DCP,MPA
