If You Think Compliance is Expensive - Try Non-Compliance!

Compliance should be made as simple as possible because it is a complicated business area. This is true regardless of which sector or industry you work in. Compliance is so much more than just another business function. Adhering to whichever rules, regulations, laws and standards apply to your business is the ‘what’ of compliance. However, it’s the ‘how’ and ‘why’ that a company should be most concerned with.

Not Just a Tick Box Exercise

If you consider compliance in areas such as data protection or employment law, there are not many businesses exempt from these requirements. That’s millions of UK companies that should be implementing and following policies and procedures aimed at complying with specific regulations and legislation.

Compliance often comes with a stigma of being a time-consuming, expensive exercise. This is especially true for small businesses and sole traders who often find themselves having to meet the same high compliance standards as much larger firms. It can be seen as a ‘tick box’ exercise that can be checked off a list and then forgotten about.

However, it is important to understand that non-compliance has real world consequences. Consider a business who processes personal data and so has obligations under the General Data Protection Regulation (GDPR). Overseen by the Information Commissioners Office (ICO), infringement of the regulations can lead to a standard maximum penalty. This can result in fine of £8.7 million or 2% of the preceding years annual turnover, whichever is higher.

Cost Versus Reputation

Even more daunting than the potential fines compliance breaches can incur is the cost to a business’s reputation. Suggestions of non-compliance in any business area can be extremely damaging to a company’s image. The loss of existing and potential customers, not to mention revenue can be hard to calculate.

Moreover, reputational damage from stories and suggestions of non-compliance can take a long time to recover from. If a business is not complying with one law or regulation, what else is it not complying with?

Always remember “a bad reputation takes longer to rebuild than a good reputation takes to build!”

Make Compliance Important to You!

Compliance is not just for those running the company. It must filter down to all levels of the business and be the responsibility of everyone. Not everybody loves their job! For some people it is a means to an end and a way to pay the bills. However, if you can make your work relatable…make it personal, you can change how you view it.

Carrying out multiple checks on the data you are inputting into the system on your office PC may seem tedious. You’ve already checked it twice and now ‘Shirley from Admin’ has to check it as well. You’re frustrated and just want to get onto the next job. BUT, if you can put yourself in the shoes of the person whose data you are inputting for just a few minutes, your attitude may change.

How much care and attention would you like the office admin assistant to give to your personal data when logging your car insurance claim? What about the receptionist at your GP’s surgery? Care and attention become all the more important when it is your information that is at risk. Compliance is and should be everyones responsibility and concern. Non-compliance is one of the most expensive areas a business can be involved with. Making the time and effort to comply with laws and regulations is in everybody’s best interests.