Many business owners would consider regulatory compliance a waste of time and money. However, did you know that staying compliant and conducting effective compliance training programs from platforms like True Office Learning can help you save more in the long run?
If your business has a compliance risk, you may face hefty fines, reputational damage, material and productivity loss, and even business closure. This article will tackle the different compliance risks your company should watch out for and include in online compliance training programs.
The Foreign Corrupt Practices Act disallows bribing foreign officials or political agents by companies, US citizens, and foreign subsidiaries of American-based businesses. An organization can be held liable for actions by third parties outside their direct control, as long as they are aware of the chance that such companies would engage in corruption.
One prime example is Zimmer Biomet, which had to pay out over $30 million in fines for actions of its third-party distributor and foreign subsidiaries.
2. Employee Behavior
Organizations need to address discrimination and harassment before it happens in the workplace. Even if you already have guidelines that outline appropriate employee behavior, one staff member can cause a host of problems, especially if his actions weren’t adequately dealt with right away.
If organizations don’t take proper preventative steps against employee behavior, they can pay a lot in fines and reputational damage. Throughout 2015, the US Equal Employment Opportunity Commission collected over $525 million for victims of discrimination in the workplace, with about $125.5 million of the settlements relating to harassment-related cases.
Discrimination and harassment aren’t something to overlook. Make sure all employees are properly informed of what constitutes inappropriate behavior, the consequences, and who to contact to report such cases.
3. Workplace Health and Safety
Employees are the heart of any organization, which is why it’s important to keep everyone healthy and safe. That’s why there are numerous federal regulations that the Occupational Safety and Health Administration oversees. The rules would cover all employees in the USA, with the organization enforcing safety compliance.
If an organization doesn’t meet such guidelines, it’ll be prepared to pay a significant price. For example, an Ohio auto parts manufacturer had to pay around $3.42 million in fines because they willfully exposed their temporary workers to machine hazards!
4. Data Management
Depending on the information your organization works with, it will have to comply with various regulations related to how data is stored and transmitted. Furthermore, organizations have to comply and create policies on who can access such confidential data.
Here are the most common cases associated with oversight:
· Financial documents
· Credit card data
· Medical information
· Student records
There are also many more compliance risks associated with data management. Organizations that are not fully compliant with data-related regulations can face stiff penalties that can affect their operations, reputation, and cash flow for years.
Wrapping It Up
Now that you know more about compliance risks, you must ensure you mitigate such risks with an effective training program.