Whilst the complexity and costs associated with ensuring compliance can be significant, the cost of non-compliance can ultimately be many times greater leaving organisations of any size exposed. The potential direct and indirect costs of compliance failures on an organisation will depend on the nature of non-compliance.
Often organisations are preoccupied with the direct financial penalties associated with compliance failures but the risk and total cost of a serious compliance failure can be much greater and involve the following:
“If you think compliance is expensive, try non-compliance”
US Deputy Attorney General Paul McNulty
Significant financial penalty
For example, for severe violations of the General Data Protection Regulation involving personal data, an organisation can be fined up to 4 % of their total global turnover for the preceding fiscal year.
Prevention of trading or access to a certain market
A company, professional or management team can lose their right to operate in a market due to non-compliance with the rules and regulations of a governing industry or professional body.
Existential Reputational damage
Potentially greater than the first two – Customer perceptions can result in no-one wanting to buy from or work for a certain brand – even if a compliance issue was linked to a certain product.
Criminal Charges
Where criminal activity has taken place, employees and management teams can be held responsible for their actions or lack of actions and face criminal charges.
Good Business
Compliance Management is often about reducing risks. However compliant operations build trust and our more reliable which is good for business, loyalty and justifies a premium.
These factors and risks are the driving force behind businesses of all sizes allocating more resource and budget to manage compliance and key risks across their operations and to their business.
What’s your Compliance Management challenge?
We offer Free of Charge consultations to enhance compliance across your operations and processes.
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ProcessFlows transition to Konica Minolta – FAQ
/in News & Insights /by ProcessFlowsHere is a simple Frequently Asked Questions page to assist you regarding the transfer of ProcessFlows business activities to Konica Minolta Business Solutions (UK) Limited .