Stumbling Blocks to Compliance
Corporations around the world are spending significant resources and effort in building and sustaining robust compliance programs. However, despite these efforts there is an increasing trend in violations and enforcement actions. Executives are placing more emphasis on making the compliance program succeed amidst complex business operations, geo-political challenges, competitive pressures and financial stress.
In many organisations, there are barriers to overcome – or, red flags that influence the success of a compliance program. In this article, FTI Consulting identifies some of the stumbling blocks of implementing an effective compliance program and the measures companies can take to mitigate and overcome these challenges.
Overstressed Business Aspirations
One of the foremost and fundamental factors in creating an effective compliance program, is the buy-in from management and shareholders on its impact on business, growth and profits. One has to bite the bullet on the consequences of having to deal with red-tape, delays and impact on the operations and growth of the business. The employee on the ground cannot be expected to adhere to all compliance guidelines whilst also being pressured with business goals. Often the risk of bribery and corruption increases due to aggressive business plans and strategies. This does not imply that a successful business is built on a foundation of bribes and corruption, but it is important to acknowledge and maintain balance between a culture of compliance and achieving business goals.