What is Legal and Regulatory compliance?
Legal compliance is the ongoing process of adhering to all applicable laws, regulations, and internal policies governing an organization's activities. It encompasses a proactive approach to identifying, understanding, and implementing these requirements to mitigate legal risks, build trust with stakeholders, and operate ethically within the broader business environment.
What is regulatory compliance?
Adhering to legal and regulatory requirements specific to an organization’s sector forms the bedrock of legal compliance. Compliance failures typically result in penalties for the organization and potentially the individual at fault too. The consequences of legal compliance failures vary hugely according to the specific rule broken.
Is compliance a legal requirement?
Firms cannot afford to take a casual approach to compliance. Consequences of breaching rules and regulations that apply to financial institutions include internal or regulatory disciplinary actions, civil liability, costly penalties and fines, damaged corporate reputation, and loss of goodwill. Effective compliance strategies allow organizations to mitigate these risks.
What are the benefits of legal compliance?
The benefits of legal compliance extend far beyond simply avoiding penalties and legal trouble. The key advantages include reduced risk, enhanced reputation, operational efficiency, and stronger governance. By embracing compliance, companies can create a foundation for sustainable success and contribute to a more responsible and trustworthy business environment. Contact one of our specialists today for help keeping your organisation compliant.