© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Compliance Risks: 5 Examples and Solutions
Posted 29th June 2022

Compliance Risks: 5 Examples and Solutions

Compliance risk, also known in some regions as "integrity risk", is a business's potential to be exposed to monetary fines, legal penalties, material losses, etc. All this is caused by a failure to comply with the parameters set by the industry’s best practices and laws and regulations.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Compliance Risks: 5 Examples and Solutions
Compliance

Compliance risk, also known in some regions as “integrity risk”, is a business’s potential to be exposed to monetary fines, legal penalties, material losses, etc. All this is caused by a failure to comply with the parameters set by the industry’s best practices and laws and regulations. Compliance risk is present for every type of business, regardless of whether it’s a profit or non-profit or operates in the private or public sector.

All organizations accept that this type of risk is the price of doing business in a regulated and controlled manner. It is the responsibility of the organization to stay cognizant of the industry’s regulatory bodies and stay up to date with the changes made in legislation. There are of course organizations such as https://techumen.com/hipaa-security-risk-assessment/ that deal specifically with making sure that your company avoids any compliance risk issues.

This article will dive into the most common examples of compliance risk and then delve into comprehensive solutions to avoid and mitigate the penalties that might come your way.

 

1. Data Management

Depending on what type of information your organization deals with, several regulations are in place that stipulates how this data is stored and transferred, and who ultimately has access to it. The types of records most commonly under scrutiny include:

  • Medical history
  • Financial documents
  • Academic records
  • Credit card data

Failure to protect your client’s data will lead to hefty penalties. Small businesses and start-ups, in particular, are prone to data breaches as they don’t usually prioritize their resources toward cybersecurity.

 

2. Corruption

Corruption is a common malaise found in almost all organizations. It’s the job of the business to create an environment that doesn’t allow for its employees to engage in behavior that could prove harmful to the business’s image and integrity such as fraud.

Ethics training must be conducted on an as-needed basis for all staff to prevent any room for interpretation. Monitoring employee behavior is also a viable option to curtail corruption. It must be noted that your company can be held liable if third-party businesses outside of your company’s control are engaging in corrupt activity and your company is aware of it.

 

3. Lack of Disaster Preparedness

This refers to the failure to have strategies and plans in place in the event of natural or man-made disasters. It’s a largely overlooked compliance risk as many businesses, particularly smaller ones, would believe this to be an example of external factors out of their control.

That’s why it’s important to examine the different disaster scenarios that could affect businesses’ day-to-day operations.

For business continuity, it must implement IT support systems that will make it possible for a business to function amidst the disaster. An added risk that was discussed in a previous point is the protection of data. A disaster recovery plan that focuses on procedures that will be employed to protect, retrieve, and restore data to ensure basic operating functions as soon as the company can.

A data breach that occurs during this period due to the vulnerability of a company’s systems can be penalized if proper measures weren’t taken to prevent it.

A well-thought-out disaster recovery plan must include details such as:

  • Strategies that minimize the duration of disruption of regular business operations.
  • The development of teams that will be on standby to implement the recovery work.
  • The simplifying of recovery work through performing test drills regularly to ensure the effectiveness of the plan.

 

4. Health and Safety Protocols

Many laws regulate health and safety compliance across the globe. In the United States, OSHA (Occupational Safety and Health Administration) and FDA (Food and Drug Administration) are present. Their equivalent in Europe would be EU-OSHA (European Agency for Safety and Health at Work) and EMA (European Medicines Agency).

Businesses are legally bound to follow the specific health and safety protocols specific to their region. By adhering to health and safety compliance, an organization can avoid injuries, health-related issues, and even death.

 

5. Social Responsibility

The impact on and way your organization treats its staff and the surrounding community can create financial risks.

While this final point may not be a regulated compliance risk, no organization is free from the scrutiny of the court of public opinion. Failure to retain a good image for your business will result in a boycott of your service/product which will, in turn, cause you to lose profits.

 

Conclusion

An organization must run regular compliance risk assessment checks which will help identify the potential risks that will lead to the breaking of compliance regulations. As mentioned in this article, the easiest and most effective way of avoiding breaking compliance is simply complying.

Categories: News, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Sie Holding acquires 51% of shares in Tagor Electronic doo Nis.
Legal
05/05/2015Sie Holding acquires 51% of shares in Tagor Electronic doo Nis.

Marija Tasic and Vanja Stojanovic, attorneys at law from Tasic & Partners, after months of negotiation, have finalized the acquisition between Austrian company System Industrie Electronic Holding AG (SIE Holding) and Tagor Electronic doo Nis, leading manufactu

Read Full PostRead - Eye Icon
Business Success: Five Ways AI Can Aid Human Connection and Collaboration
Innovation
17/04/2023Business Success: Five Ways AI Can Aid Human Connection and Collaboration

Technology is constantly changing the way we work, and automation is something business owners will be keeping an eye on in the future. This is definitely the case with artificial intelligence, with the global market for AI predicted to reach $267 billion by 2

Read Full PostRead - Eye Icon
What Do Companies Look for in their Accountants?
Finance
01/09/2020What Do Companies Look for in their Accountants?

Very few professions are as versatile as that of an accountant. Unlike most skilled workers, including doctors and engineers, the accountant can potentially work in any industry. The ability to work with numbers, or rather make the numbers work for their emplo

Read Full PostRead - Eye Icon
An Unwavering Commitment to Excellence
Finance
02/06/2017An Unwavering Commitment to Excellence

Bonassa Bucker Advogados has been involved in the implementation of several international enterprises, constituting companies and partnerships, as well as serving foreign investors from various sources. In this article, Fátima Cristina Bonassa Bucker provides

Read Full PostRead - Eye Icon
Almost Two Thirds of UK Companies Report Higher Revenues Than Last Year
Finance
16/04/2015Almost Two Thirds of UK Companies Report Higher Revenues Than Last Year

64% of UK companies have reported higher or much higher revenues than a year ago, in a new survey commissioned by American Express.

Read Full PostRead - Eye Icon
3.5 Million Jobs at Risk if EU Grants Market Economy Status to China
Leadership
21/09/20153.5 Million Jobs at Risk if EU Grants Market Economy Status to China

A landmark study by the Economic Policy Institute released today reveals that if the EU grants Market Economy Status to China, the EU could lose 3.5 million jobs and 2% of GDP.

Read Full PostRead - Eye Icon
6 Tips To Enhance Commercial Fleet Sustainability
Strategy
10/01/20236 Tips To Enhance Commercial Fleet Sustainability

More and more, the idea of making business socially responsible has become urgent in light of the looming crisis. As the push to become eco-friendly intensifies, making commercial fleets sustainable is becoming the norm, especially for those of a considerable

Read Full PostRead - Eye Icon
Kong Announces Launch of New Premium Technology Partner Programme to Enhance Developer Ecosystem
Innovation
17/09/2024Kong Announces Launch of New Premium Technology Partner Programme to Enhance Developer Ecosystem

Kong In, the leading developer of cloud API technologies, unveiled during the company’s annual API Summit, its new Premium Technology Partner Programme.

Read Full PostRead - Eye Icon
The Blueprint for Selling Real Estate in Chicago IL: Acquisition International’s Expert Insights
News
27/03/2024The Blueprint for Selling Real Estate in Chicago IL: Acquisition International’s Expert Insights

Chicago drips with real estate potential. Skyrocketing home values, thriving neighborhoods, a vibrant culture – ripe opportunities abound for savvy investors. Yet seizing this wealth potential requires insider expertise in the complex workings of the mar



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow