DEVELOPING AN EFFECTIVE COMPLIANCE STRATEGY

RC: In broad terms, could you provide an insight into the rising regulatory challenges faced by today’s firms? How important is an effective compliance strategy to manage these challenges?

Higgs: Over the past five years in particular, there has been a marked increase in legislative initiatives to increase standards of business ethics and to combat harmful business conduct such as bribery and corruption and fraud. Alongside legislative reform, there has been a marked increase in regulatory enforcement in a number of jurisdictions. Today, companies with operations in the US or UK in particular cannot afford not to have a compliance program in place – particularly those working in more heavily regulated industries, or industries which have attracted the particular attention of regulators. However, regardless of where a company does business, it needs to be aware of increased regulatory enforcement. Beyond regulatory challenges, it is also simply good business to implement a compliance and business ethics strategy.

Zikmund: The regulatory challenges faced by today’s firms are stronger than ever. All firms are impacted by various regulations depending upon the type of industry. Financial services, healthcare and manufacturing are not immune. An effective compliance strategy is extremely useful to manage and mitigate risks faced by these firms and ensure compliance with applicable laws and regulations. A compliance strategy includes a compliance risk assessment, which identifies those risks impacting the firm. Any regulatory requirements should be identified during the risk assessment. The Chief Compliance Officer must ensure that the compliance program includes measure to manage these risks once the results of the risk assessment are reviewed.

Oct-Dec 2014 Issue

Balfour Beatty Plc

Bunge Limited

Navigant

Starbucks Coffee Company