Compliance is often misunderstood, as what organization must do versus what they want to do. Compliance, when done well, leads the organisation towards high performance and efficiency. In other words, having an effective Compliance Program is the best way forward. Compliance are clear processes that any organization must follow in order to abide by internal rules of conduct and external regulations.
It encompasses the company’s values, ethics policy, employee handbook, policies for complying with all legal business matters such as taxes, data protection, corporate reporting and all international business certifications. Large corporations have a dedicated legal department to manage compliance, whilst in medium this falls under the preview of a CEO, CFO or HR. In small businesses and start-ups, compliance resides with the business owner and often goes undocumented.
We, at Global Synergy Trading (GST), take compliance very seriously. Our CEO, was the Chief Compliance Officer and Risk Manager during his career for his previous companies. He is is very proactive and aggressive on compliance and risk management and ensures that we consistently adhere to our internal policies, whilst guiding our partners to do that same. At GST we believe “it takes years to build a reputation and seconds to lose one.” When it comes to developing and growing our businesses, reputation is key.
At GST, we understand that our customers intend to partner with those that share similar values and compliance principles. We are customer- centric and believe in transparency, trust and long-term partnerships through clear, well documented and effective compliance, thus providing:
• Clarity for your stakeholders. • Reflect joint commitment with the highest ethical standards. • Enable reputation as a corporate organization. • Demonstrate your company’s expertise in the relevant laws and regulations.
1.Builds loyalty and trust: Reputational risk is the number one driver for regulatory compliance, which surpasses the risk of avoiding penalties by far. It is very relevant in the ever-changing business environment, as being transparent about business defects actually improves customer perception and increase collaborative stakeholder engagement.
2.Improves operational processes:
Compliance has significant benefits on business operations though streamlined processes.
• Encourage Best Practices: Ensure to implement best practices when cost cutting comes into play.
• Maximise supply chain awareness: As per Deloitte’s, third-party compliance risk management is the most challenging aspect of compliance. Regulations that mandate compliant supply chains ensure that businesses take a thorough look at their third-party agreements.
• Drive governance:Business records are evidence to prove compliance. Governance leads to strategic decisions, as information and assets are consolidated, evaluated and organized.
• Talent building: Attraction and retention of quality teams with strong work ethics, thus boosting efficiency and effectiveness, with a win – win situation.
3.Boosts a positive bottom line: All business wish to avoid compliance penalties as that has a direct impact to profitability, thus, focus on initiatives that enhance competitive positioning and market share gain. As indicated by a study, the average cost of data privacy compliance is $3.5 million per organization, whereas the average cost of non-compliance-related issues was $9.4 million which included penalties, business disruption, lost productivity, and legal and non-legal fees.
4.Defines the purpose: The “why” of any organisation drives its efforts and gives it a direction - which is based on the set of values and ethics - leading to organisational behaviour.
5.Drives consistency: Clear outlined values, ethics and codes of conduct act as a reference for day to day decision making. Once the right principle is developed, all manifestations of the same generic situation can be handled pragmatically; that is, by adapting the rules to the concrete circumstances of the case.
6.Streamlines common mistakes: The most common errors are made from within the organization and have a direct impact on its performance. Whilst understanding macro and external risks, any business cannot undermine the importance of internally generated organizational risks. At GST, we ensure that we adhere to our internal compliance. A healthy compliance function will highlight business irregularities by tracking core metrics that may show areas of under-performance and friction. It can resolve disputes and human misunderstandings.
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