Regulatory Compliance – What is the need?
When an organisation is formed, the most important and the foremost thing that is put into effect is the rules and the regulations that need to be followed. These are necessary for the enterprise to work in an organisational and structured manner which will eventually lead to the betterment and the growth of the organisation. The setup and the implementation of the rules and regulations are applicable to both the established and the start-up enterprises.
The different departments and sections are given a certain set of rules that the employees engaged in those departments follow in order to make the firm work efficiently and effectively. The rules and the regulations that are designed for the institution must be followed thoroughly else the point of their existence is not reasonable. The enterprise has to ensure that the rules are being implemented and followed as per structured, and this is where the use of regulatory compliance in Dubai, UAE comes into the picture.
What Is Regulatory Compliance in Dubai, UAE?
The regulatory compliance can be defined as compliance with the standards and the regulations that are set by an organisation. This is an extremely important and integral part of the existence of an enterprise and must not be skipped. The proper implementation and the compliance with the laws and the regulations of the organisation help in the encouragement of a work positive environment wherein the employees of the enterprise work in an orderly fashion to achieve the goals set for them. This also encourages a good relationship with the stakeholders of the company.
Roles of The Regulatory Compliance in Dubai, UAE
To ensure that the rules and the regulations of the enterprise are being followed religiously in the firm, the regulatory compliance management performs the three lines of defense for the compliance. The following listed are the three lines of defense that are followed by the regulatory compliance team:
- Management Assurance in Dubai, UAE
- Aids in the planning and the execution of the strategies and the achieving of the goals set by the organisation.
- Encourages strong and integrated compliance culture
- Offers guidance and direction to the firm
- Promotes a sustainable and strong risk- averting thinking
- Risk management and Legal Compliance in Dubai, UAE
- This stage includes the interpretation of the requirements of regulatory compliance.
- Supervise the management assurance stage.
- Cultivate a strong and reliable framework for organisational policies.
- Monitors the risk and the legal compliance for the firm
- Internal Audit and Independent Assurance Providers in Dubai, UAE
- Monitors and tracks the risk management and the other internal controls
- Offers assurance for the effectiveness of the mitigation plans
- Administer the organisational risks
- Checks for the overall efficiency and the constructiveness of the governance
Why is regulatory compliance important in Dubai, UAE?
Since the regulatory compliance deals with the overseeing of the compliance of the employees with the rules of the organisation to promote a healthier and better work environment, it serves an eminent purpose in the firm. The following points summarise how regulatory compliance makes a difference in the functionality of the firm.
- It improves the work environment at the firm
- It boosts the legal process
- It helps in the development of risk management strategies and plans
- Improves the business relationships by following a framework for the different functions
These are the important functions that are served by the regulatory compliance in the firm and form an integral part of the conduction of the structured plans in the enterprise. It reinforces the core foundation of the firm, along with giving shape to the other ongoing business functions.
Since the compliance with the rules and the regulations of the firms results in a lot of benefits for the business and the structure of the firm, you must wonder what would happen if there is no regulatory compliance management in an organisation. The answer to this thought can be found in the following paragraph.
Result of Non – compliance
The consequences of not complying to the rules and the regulations of the firm could result in the following outcomes:
- Reputational and legal risks
- Revocation of the licenses
- Disruption of the sustainability of the organisation
- Fines, and penalties that could even result in the lifelong imprisonment
- The paucity of decent corporate governance
- Complexities in the business valuation process
The aforementioned are just some of the consequences that could be enforced due to the non – compliance of the structured laws and regulations that are made for the betterment of the organisation. These outcomes could become intense if the compliance is not done.
Thus, the regulatory compliance management is vital for the firm to function in an organised and structured fashion. The regulatory compliance will provide with a healthier and effective work environment that will increase the productivity and the morale of the employees.
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