As the Coronavirus pandemic continues to plague businesses across the globe, Stratford-upon-Avon based business risk and compliance experts GWCI have urged companies to keep compliance top of mind whilst attempting to navigate through the pandemic, in order to evade avoidable slip-ups in the future.
Compliance models are put in place to help businesses maintain compliance in all areas of operation to avoid issues such as waste, fraud, abuse, discrimination as well as other unethical or illegal practices. Such models will focus on upholding policies and procedures that prevent companies and their employees from breaking laws and regulations.
With compliance often coming at a cost, Graham Welland, CEO of GWCI has become concerned that as cashflow panic continues to set in due to the fallout from Covid-19, businesses will look to cut their compliance budgets which could subsequently lead to serious repercussions.
With Covid-19’s world tour now in full swing, many businesses have been forced to make difficult decisions to ensure their organisation remains solvent over the next few months.
Much of these difficult choices have revolved around cutting costs in order to protect organisations and their employees in the midst of the Coronavirus outbreak as businesses inevitably prepare for a long hiatus without income.
As lockdowns are implemented throughout the world, a significant dip in cashflow has since become a serious concern amongst organisations which has led to businesses taking precautionary actions to preserve their very existence.
In light of the current situation, GWCI has further advised that whilst the need to tighten the belt is growing, the importance for businesses to retain their compliance model has never been more crucial in such unprecedented times.
Graham Welland, CEO of GWCI commented: “The Coronavirus pandemic has had an unsolicited global effect on businesses of all industries throughout the globe and this is certainly worrying times for many.
“But in the process of cutting costs we strongly urge businesses to avoid the temptation of curtailing the budget set aside for compliance as this may prove to be counterproductive and in turn could create issues further down the line.
“Businesses who cut their compliance budgets are simply instilling a false economy within their own organisation as falling foul of compliance regulations may happen when you least expect it – and such penalties come at a cost.
“Understandably, businesses will be fighting tooth and nail to remain solvent over the next few months but the reality is that those who successfully navigate their way through this uncertain period may leave themselves vulnerable to reputational and financial consequences if they are found to be in breach of key compliance regulation.
“As such, businesses need to be mindful of the future, as well as the now. Stripping costs is an unfortunate reality of managing the current situation, but ignoring laws, regulations, standards and ethical practices that apply to your organisation will only serve to damage the company.
“The purpose of enforcing a compliance model within an organisation is ultimately protect it from any ‘short-term’ism’ that may take hold. Regulators may be lenient on a company that does not respond immediately to requests, but they will not give any leeway when it comes to breaking the law. This was seen after the collapse of the financial markets in 2007-8. In such uncertain times protecting your business has become more crucial than ever and making sure that all areas of your organisation are working in tandem will not only help it grow but also prevent major disasters from occurring.”
To protect business from falling foul of key regulations, GWCI has launched a cost-effective all-in-one solution called Compliance in a Box which allows companies to demonstrate key areas of compliance to ensure that they do not put themselves at a distinct disadvantage when looking to trade around the world.
