Regulation a “scary word” which can lead to penalties
Regulation is an official way of doing the things made by an authority which consists of a set of rules and trends. It is normally defined as legislation imposed by government authorities on individuals, firms private or public to regulate and amend economic factors.
Compliance in law
Compliance means following rules and regulations as prescribed in the law. Every business in the modern world is required to follow certain legal and business rules. Compliance requires implementing codes of practice and company policies to ensure the regulations are being met on a day-to-day basis. Like all Company management level officers, employees are required to comply with all the laws, rules, and regulations related to their business activities. For example, if the Companies Act states that annual returns must be filed by every registered company, then legal compliance would be to do just the same. Legal compliance is statutory compliance i.e. abiding by what the law has stated in these acts.
Failure to adhere to the compliances stated can lead to heavy fines, penalties, or legal suits. You must have heard about EU GDPR – “General data protection regulation” a unanimous move to protect data from cyber-attacks and breaches which is to be followed by all the organizations operating within Europe, European residents as well as by all the Non-European organizations trading with European nationals or companies.
Failure to comply will result in a fine of 4% of the annual worldwide turnover of the organization or 20 million Euros; whichever is higher.
Compliance provides the moral center of significance that influence your entire organization. A lack of compliance can cost you loads of heavy penalties. Rather than merely enforcing policy, today’s compliance officers can help in accelerating business by providing information that will help the business leaders make more informed decisions regarding the risk and expense of working with third parties.