For business owners everywhere, maximising profitability will always be the bottom line. But equally important for all organisations is continuing to operate within the boundaries of the law, and that means maintaining total compliance at all times.
Doing so will ensure your company does not open itself up to potentially damaging consequences, which can include severe financial penalties that, in some cases, can lead to businesses going under.
So, with so much at stake, it’s more important than ever that your enterprise remains compliant, something which these pieces of advice can help you to achieve:
Assess the risks
First and foremost, you need to gain a clear understanding of the potential risks and how they are most likely to affect you. For example, a recent survey revealed that 11% of SMEs were not aware of new tax laws which were introduced. Being naïve of such legislations is unlikely to save you when the authorities come knocking, so it’s imperative that you familiarise yourself with all your legal requirements as well as analyse which areas of your business are most susceptible to risk.
Employ an effective risk management system
Of course, being aware of the possible risks only forms part of the solution. Your company needs to employ systems that prevent or at least minimise any damage – something which can be done by enlisting the services of a third-party legal firm, such as Clifford Chance’s risk management and compliance team. An independent, objective company may be able to simplify things for you and pinpoint areas of risk which you had not previously identified.
Part of your strategy should include frequent audits and checks, which may help you to recognise any problem areas. These audits should become a routine feature of your processes, therefore increasing your chances of spotting anything that could become a concern.
Use the right software
As advances in modern technology continue to transform the business landscape on a seemingly daily basis, utilising the right software is more important than ever. Part of those considerations should be your software’s GDPR capabilities – it was recently revealed that 52% of companies were not fully GDPR compliant, more than 12 months on from its introduction – and such breaches can have significant and potentially destructive repercussions.
In the high-stakes world of modern business, those are risks you can ill afford to take.