What is compliance?
Compliance in the enterprise context refers to adhering to laws, regulations, standards, and ethical practices applicable to business operations. It encompasses everything from data protection and financial reporting to industry-specific regulations.
What does compliance look like in an enterprise?
Compliance manifests as a framework of policies, procedures, and controls that guide operations. It includes regular audits, compliance training for staff, and reporting mechanisms to ensure all practices and outcomes meet the required standards.
Why is mitigating the compliance risk important?
Maintaining Reputation
Adherence to compliance maintains a company’s reputation and fosters trust among clients, partners, and regulators.
Avoiding Legal Repercussions
Non-compliance can lead to fines, sanctions, or legal action, making compliance a critical risk to manage.
Operational Continuity
Ensuring compliance avoids interruptions to business operations that non-compliance incidents could cause.