LOC Consulting's James Keenan says that although compliance can be costly, the cost of a breach can be far higher and that those in breach must ensure that they recover by delivering a long-term, effective change.
The internal workings of organisations are being scrutinised
like never before.
This stems not only from regulatory measures to improve
transparency, but also from a social change. Perceived
wrong-doing is now more closely investigated by, amongst
others, an increasing cadre of small but active shareholders,
as well as a growing contingent of so-called
Aside from some of the more dubious (and some illegal)
practises to have been uncovered as a result, it has become
clear that many organisations continue to sail close to the
wind in terms of risk, both managed and unmanaged, as they seek
to reap greater reward. However, a precipitous plunge awaits
those that cut it too fine, especially if they are unable to
quantify their level of exposure and are subsequently found to
have lacked the appropriate controls and board-oversight to
prevent the compliance breach.
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