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Are the consequences of non-compliance worth the risk?
Countless local and international regulations that govern every business operation are put in place to ensure that commercial entities act in a reasonable and responsible manner. But with the abundance and complexity of regulations, and the fact that they change rapidly, many businesses tend to treat compliance as a secondary function with little consideration of the consequences.
In addition to penalties such as hefty fines and trade sanctions, other consequences of non-compliance with applicable laws can include:
No director or board member wants to face criminal charges for not ensuring that their enterprise adheres to the law. However, criminal charges are a potential consequence for certain regulatory non-compliance. Failure to comply in areas pertaining to staff management, workplace safety, marketing, supply chain, corporate governance, stock management and due diligence laws could result in jail time.
A business’ public image is key to its success. When a company is thrust into the public eye for failing to comply with regulations, there are reputational repercussions, which eventually leads to distrust. Once that happens, loyal customers may leave, new customers may be put off and potentially beneficial partnerships may never develop.
Loss of lucrative opportunities
South African businesses are required to meet a host of regulations if they wish to do business with government or any of its parastatals. Non-compliance across your enterprise and business network could result in exclusion from the tendering process and supplier database. In addition, companies that place value on corporate compliance may avoid doing business with you as they would want to ensure that they meet their own regulatory obligations.
Greg Chamberlin, Business Development: Compliance at LexisNexis, said companies can avoid these consequences by having in place a well-coordinated compliance management system, which begins with identifying the acts and principles that apply to your organisation. In addition, he advised taking a pro-active approach to protecting the business. “It is extremely beneficial to keep abreast of the updates and changes to these regulations so that you can identify threats before they impact your business,” said Chamberlin.
“Compliance is challenging and LexisNexis offers a variety of solutions to simplify the process. One such solution is Lexis® Assure, a built-in notification service that informs customers of any regulatory changes that could specifically put their businesses at risk,” Chamberlin added.
LexisAssure is backed by a team of LexisNexis journalists and subject matter experts providing the information companies need to interpret emerging legislation. The solution keeps users abreast of regulations to determine their compliance obligations within the context of their own industry and organisation. This information powers the regulatory change management engine, ensuring that users never miss an important regulatory event and that they can action the necessary changes quickly and effectively. The solution base package covers Human Resources, Financial and General Compliance. For a more comprehensive solution organisations can then add industry specific packages such as Banking and Financial Services, Manufacturing, Transportation and Retail.
Key features include:
- Regulatory Universe - A convenient snapshot of all the relevant Acts relating to the users’ business as well as the level of associated compliance risk for each Act.
- Proactive alerts – with emails that put legislative changes on the client’s radar within 48 hours
- Meaningful Expert Analysis – with simple, clear explanations of any changes to the client’s regulatory universe, relevant compliance obligations and any penalties resulting from non-compliance
- Compliance Calendar – which reminds customers about important effective dates of legislation, regulations and penalties affecting their regulatory universe.
For more information, visit http://www.lexisnexis.co.za/lexisassure/
LexisNexis Legal & Professional is a leading global provider of content and technology solutions that enable professionals in legal, corporate, tax, government, academic and non-profit organizations to make informed decisions and achieve better business outcomes. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis® and Nexis® services. Today, LexisNexis Legal & Professional harnesses leading-edge technology and world-class content to help professionals work in faster, easier and more effective ways. Through close collaboration with its customers, the company ensures organizations can leverage its solutions to reduce risk, improve productivity, increase profitability and grow their business. LexisNexis Legal & Professional, which serves customers in more than 175 countries with 10,000 employees worldwide, is part of RELX Group, a global provider of information and analytics for professional and business customers across industries.
In South Africa, the LexisNexis Legal Information and Compliance division combines the best of local knowledge in Butterworths with the innovative global technology in LexisNexis, with authoritative content available in print, online, mobile and eBook format. Through compliance management solutions such as Lexis Assure and Lexis GRC, LexisNexis offers clients a strategic approach to regulatory change management.
South African investment firm, Tsiya Group, chaired by Fani Titi, acquired a minority interest in LexisNexis South Africa in July 2012.