Keeping a pulse on global compliance and operations presents a host of challenges in today’s rapidly evolving international economy. As a growing number of middle market companies expand their presence into new countries, the need for understanding and organization of global compliance requirements is on the rise. Regardless of the driver for international expansion challenges remains for; cost optimization, acquisition, market and investment diversification. Most companies face strained budgets, unstaffed resources, tight timelines, inadequate subject matter experts and lack of organization and communication, adding to the uncertainty of compliance operations, and exposing a company to penalties, legal action, reputation-risk and possible shut-down to operations.
Identifying and addressing current and emerging compliance risk can start with four fundamental considerations:
- How does the organization currently manage information related to its global compliance requirements?
- Is key information easily accessible in a central location (and available in a timely manner) for operations across the enterprise?
- Who is responsible for managing these efforts, across the globe?
- Who are the contacts for each location, country or entity?
- How does the organization obtain, maintain and communicate compliance requirement and deadline information across the enterprise to ensure effective execution?
- What are the roadblocks that are causing non-compliance risk?
- Is there a delay in flow of information across the enterprise, causing a domino effect of missed deadlines, and as a result, penalties?
Understanding the current process and key contacts can help reduce these unnecessary compliance risks. Getting a handle on the questions outlined above can help an organization understand if its process is cohesive and whether they may be at risk for penalties for non-compliance. Successful global compliance and efficiency across an organization, frees up team members to focus on strategic, value-add initiatives, opens up finances for growth and investment and reduces overall organizational risk.