Compliance is not something that any organization can shake.

Why?

As per our risk entry on compliance, compliance is a major risk. In any given country there are dozens (and dozens) of regulations that have to be adhered to. They cover all aspects of operations from workforce to production to distribution and all of the environmental and operational and labelling requirements that go with it.

Impact Potential

• fines that can be serious as a result of violating any regulatory requirement
• seizure and destruction if a product contains banned substances
• criminal charges in some jurisdictions as gross negligence that leads to people getting hurt or killed by your product or service is sometimes enough for criminal charges

Major Challenges/Risks

• international organizations are subject to hundreds of regulations and even itemizing what they are can be a near impossible task
• reporting requirements can be quite onerous and exacting, especially when there are language laws, minimum disclosure laws, precise submission requirements, etc.
• track and trace requirements that may require every raw material to be tracked and traced back to the source

Final Words

The topic of, risks resulting from non, and the barriers that are imposed by compliance could fill volumes, and has. That’s why compliance will always be a top concern, and why you need experts in the various areas and jurisdictions you need to be compliant in to make sure that you are.