The high cost of non-compliance

Reaping the rewards of an effective compliance program

Executive summary
Companies are finding legal and regulatory compliance costs soaring
while effectiveness declines, giving rise to huge fines, penalties, awards and settlements – often in the billions of dollars. Policies and procedures build with each new law and regulation but are disparate, duplicative, and fail to comprise an effective compliance program.Some companies not only have made their programs effective and efficient, but also gained tremendous business benefit. Understanding the rationale for ever expanding legal and regulatory requirements, they recognize the underlying marketplace drivers and align strategic initiatives to gain market share, profit and return.By aligning business objectives and building compliance programs into existing management and business processes, responsibility and accountability is put where it works best, increasing effectiveness, reducing cost, and providing senior management and the board with the information they need.What’s the state of your company’s compliance program? Is it truly effective, and are you satisfied with its costs and benefits? Have senior executives in your organization said things like:

  • “We’re fine, because we’ve never had a major compliance problem.”
  • “The kinds of problems our peers suffered couldn’t happen here – we’re better and smarter than that.”
  • “We already have a code of conduct, whistle-blower channel, and other elements of what’s required for compliance.”
  • “Our general counsel has responsibility for ensuring we’re fully compliant with all laws and regulations, so we’re covered.”

If you’re an experienced compliance professional reading this, you’re probably cringing at these “positive” expressions of satisfaction. But whatever your corporate responsibilities, if you’re concerned about the cost and effectiveness of your company’s compliance program, please read on

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