The Compliance Ecosystem
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 wrote in from Lagos