Failing to comply with industry regulations could leave firms exposed to additional risk or costly fines.
Failing to comply with industry regulations could leave firms exposed to additional risk in costly fines. However, a report by CFO Magazine stated that few organizations have sufficient metrics established to monitor compliance issues.
The source noted that businesses are needlessly exposing their operations to risk by not fully addressing regulatory issues. While the article dealt specifically with the Foreign Corruption Practices Act, violating any compliance standard could potentially harm any organization. Failing to meet safety benchmarks may result in additional accidents that reduce production and create labor problems.
Employee rewards and recognition programs provide managers with the tools needed to create a safety-focused culture. Acknowledging individuals who have made factory floors and other work areas more secure helps reinforce a commitment to regulations. CFO Magazine noted that establishing rewards for staff members who report violations can encourage everyone to take responsibility of how their companies operate.
Incentive programs can be used to create various metrics that help firms eliminate regulatory issues. Creating team-based rewards for performance could improve communication and coordination among departments. Making everyone responsible for compliance ensures that objectives are reached quickly and reinforces the importance of continual improvement on risk management practices.