Through Compliance & Outsourcing Services in Delhi, a company implements a whole series of activities that aim to prevent and avoid the risk of failing to comply with the sector regulations and the laws in force in the area in which it operates.
Therefore, has the purpose of implementing specific activities that always allow full compliance with the laws in force.
In this way, therefore, in the event of problems leading to non-compliance with the laws, all activities will be implemented through compliance to make these compliance mechanisms effective and suitable.
The fact of adopting compliance strategies in compliance with the laws in force and respecting what competitiveness is, certainly makes the company itself more attractive and inspires confidence in markets and lenders.
The Breadth of Corporate risks and, Therefore, of Compliance
Companies must daily consider all the risks they may incur: risks related not only to factors such as safety and the environment (the most widespread and socially most perceived) but also to corporate integrity as a whole.
Therefore, companies must apply a long series of regulations and laws on anti-corruption, abuse of dominant position, unfair competition, terrorist financing or money laundering, etc.
Corporate compliance consists of implementing the preventive procedures necessary to avoid being exposed to financial penalties relating to non-compliance with laws and regulations.
At the same time, the companies avoid damage to their reputation. Regulatory compliance concerns both the company and its executive bodies and employees. Its implementation is based on two pillars, namely:
- The establishment of a culture of compliance with the rules through training as well as the awareness of employees and managers;
- The creation of internal alert, audit, and advisory bodies in order to detect and deal with cases of offenses.
The implementation of a prevention policy generates additional expenditure. However, making compliance a real commitment also has many benefits.
Reduced risk of lawsuits
Like natural persons (ordinary individuals), companies are required to comply with the laws and regulations in force.
In some areas such as anti-money laundering, the creation of a compliance policy is mandatory. Indeed, if a company is guilty of abuse of a dominant position or illegal agreement, it exposes itself to fairly significant financial risks.
In addition to the fine, the financial risks take the form of a claim for damages from business partners. Other sanctions are also incurred, namely:
- The arrest;
- A prison sentence;
- The nullity of the agreements concluded.
A good reputation
Compliance also allows the company to improve risk management with regard to its image with:
- Customers;
- Suppliers;
- Employees;
- And the general public.
Compliance is even a competitive argument used by some companies to display their responsible commitment and stand out from their competitors. Conversely, a company sanctioned for breaking the rules risks:
- To see its reputation deteriorate;
- Losing the trust of customers and business partners.
It is up to each company to develop a compliance policy based on competitive risks and its activity. Compliance & Outsourcing Services in Delhi can help you to ensure its effectiveness.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by
CA Aman Aggarwal
AKGVG & Associates