Tackling Local Compliance In An Increasingly Globalised World

What issues keep compliance professionals awake at night? For many compliance experts at multinational organisations with an Asia Pacific presence, keeping up with changing regulations is not conducive to a sound night's sleep.

Participants in a recent Risk.net/TMF Group survey agree, with almost 40% of senior legal and compliance professionals polled across the Asia Pacific region (APAC) citing changing local and global regulatory requirements as major challenges confronting their organisations.

In addressing these challenges, it is important to consider strategies for managing regulatory risk across multiple jurisdictions, and also working with third parties that may not yet be in alignment. In this respect, by adopting the highest possible global standards, even in jurisdictions with less onerous requirements, organisations can take positive steps to minimise exposure to regulatory risk.

But what if aiming to deliver over and above basic regional standards raises more questions than solutions by senior management? To gain their support, it is important that business leaders appreciate the benefits. Ultimately, the impetus for change in regulatory systems and processes must come from the top. Only with their blessing can change permeate the entire organisation.

However, it can be challenging to convince management that time and money must be spent on compliance - an investment that often doesn't directly produce returns with interest in the short term - much less on complying with additional rules set by a multitude of regulators. In such situations it can be helpful to point out the potential risks and penalties of non-compliance. To what extent is management willing to invest towards protecting a brand rather than place their business in jeopardy?

Changing attitudes

Fortunately, attitudes towards compliance are shifting as more APAC countries tighten local regulatory oversight of businesses operating within their remit. Indeed, in recent years the role of compliance has started to shift out of the background, now often playing a major role in protecting companies' brands.

It can take time for such changes to blossom, and their success can also depend on the region, the regulatory systems at play and the broader culture of compliance. However, the imperative to elevate compliance to a core business objective is increasingly being grasped at board level, with flow-on impacts to the overall corporate strategy at organisations throughout...

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