Mastering Compliance in a Rapidly Changing Business Landscape

October 2, 2023

All types of businesses have compliance obligations. State laws, federal laws, regulations, and ordinances adopted by government agencies and subdivisions establish myriad requirements for businesses—and it is up to business owners to ensure that they are doing what is necessary to comply.

But this is easier said than done. Due to the volume and complexity of businesses’ compliance obligations, doing everything necessary can pose a significant challenge. This is not an excuse for non-compliance, and businesses that fail to master compliance can face enforcement actions, fines, and other penalties.

5 Steps for Mastering Compliance in Today’s Volatile Business Environment

What does it take to master compliance in today’s rapidly changing business landscape? Here are some of the key steps involved:

1. Conduct a Comprehensive Compliance Needs Assessment

Business compliance obligations can vary widely. To ensure that they are doing everything that is necessary (and not doing anything that isn’t), businesses should start by conducting a comprehensive compliance needs assessment.

2. Critically Evaluate the Business’s Current Compliance Efforts (If Any)

After assessing their compliance needs, businesses should critically evaluate their current compliance efforts (if any). Do the business’s compliance efforts address all areas of concern? Do they address each area effectively? Have any of the business’s policies, procedures, or other compliance tools become outdated? These are all critical questions that businesses need to answer honestly.

3. Develop a Comprehensive and Custom-Tailored Compliance Program

An effective compliance program will comprehensively address all areas of concern in an organized and integrated manner without unnecessary duplication. It will also be custom-tailored to the business’s operations, risks, and needs. Anything less will fail to serve its intended purpose—and the business could become more at risk by placing its trust in an ineffective compliance program.

4. Implement the Business’s Compliance Policies and Procedures

A compliance program will also fail to serve its intended purpose if it does little more than sit on a shelf. Implementation is key, and businesses must devote the effort and resources necessary to implement their compliance programs in all aspects of their operations. Training is a critical component in implementation, and all personnel should clearly understand their role in helping manage the business’s compliance-related risk.

5. Continue to Monitor and Assess Compliance Risks On an Ongoing Basis

Finally, since the business landscape is rapidly changing, businesses must continue to monitor and assess their compliance risks on an ongoing basis. As a business grows or shifts focus, its compliance obligations will change. Compliance requirements regularly change, and businesses must monitor for these changes to avoid falling behind.

Speak with a Compliance Attorney at AGLA-LTD

At AGLA-LTD, we help businesses in all industries effectively manage their compliance obligations. If you have questions or concerns about compliance, we invite you to contact us.