Your business is subjected to all sorts of state and federal regulations pertaining to issues like security and privacy, illegal activity, workplace health and safety, and environmental issues. There are also industry specific regulations that you’ll have to adhere to if you don’t want to be penalized by hefty fines that could devastate your business’s financial stability and result in lost investors. Regulatory violations can also damage your business’s reputation and harm your operational practices. Therefore, moving forward it’s in your best interests to avoid regulatory issues and properly deal with them when they arise.
But how can you do that? It’s a good question, and one that you have to be able to answer so that you can implement practices that protect you from undesirable outcomes. So, let’s look at what you can do to avoid and deal with any potential regulatory issues that you and your business may face.
How to avoid and deal with allegations of regulatory non-compliance
You should work to avoid regulatory non-compliance if possible. This will save you headaches further down the road. Here are some ways that you can ensure you’re operating in compliance with applicable regulations:
- Know the law: A lot of businesses find themselves in regulatory hot water because they simply don’t know the regulations that are appliable to the them. As a result, they let issues slide that they don’t think are problematic but that are actually violations of key regulatory provisions. By educating yourself on these regulations, you’ll know where to look to ensure compliance, which will give you direction in your preventative efforts.
- Conduct an internal review: Once you know the regulations that are applicable to your business, you can assess the status of your compliance. You can also identify any operational weaknesses that put you at risk of falling out of compliance. This will allow you to take action to strengthen your practices and correct any operational deficiencies that put you at risk.
- Develop a compliance program: If you don’t have one already, you should consider creating a compliance team that focuses on areas of risk. This team can monitor your business’s practices to ensure they align with applicable laws and regulations, and they can report any concerns to you for further consideration and action.
- Train employees: True compliance is going to fall on your employees’ shoulders in many instances. Therefore, it’s imperative that you train them so that they know what actions they need to avoid. If you don’t train them, then they could violate several key regulations without even realizing it, thereby causing extensive and avoidable harm to your business.
What if you’ve already been accused of a regulatory violation?
If you’ve already been accused of regulatory non-compliance, then you need to gather as much information as you can about the conduct in question. Then, you should discuss the matter with your attorney so that you know your options for proceeding. You might be able to deny the allegations and effectively defend yourself against them, or you may be better off negotiating resolution with the regulatory agency in play. The best approach for you is really going to depend on the facts of your case.
Do you have lingering questions about regulatory issues confronting your business?
If you do, then now is the time to seek out the information you need. Only then will you be able to make fully informed decisions that are in your best interests. Hopefully then you’ll be able to confidently navigate any regulatory issues you might be facing.
