Compliance at the end of the day could be about money. The law, rules & regulation are at best, guidelines for individuals, communities, entities and organisations to behave. Ideally for common good. Enforcement, pleading guilty or not guilty, bribery, corruption, fines, annual analytics, traffic authorities budgets and collection targets all are aspects of money. An unfortunate side effect of modern societies. The alternate is transparency, integrity, peace of mind, sleep at well night.
Take for instance the figure 1, below. It applies only for driving, road vehicles or drivers in India, in the State of Karnataka valid in the year 2025. Look through a quick list (there are many more but not listed here) and the laws seem to address local problems. Two wheeler's are mentioned. Carrying more than allowed passengers (a uniquely India problem), not wearing a helmet (many states even in India do not require this). Unspecified offenses, you may think, includes driving under the influence of alcohol. No. The fine for that is Rs. 10,000/-. Could lead to a suspension of your driving license, impounding the vehicle, while repeat offenders could have, even their driving license revoked.
Most of this is known to most vehicle owners or drivers of vehicles in Bangalore, Karnataka State in India. So do you. In the country, states and city in which you live in or travel to. Uber drivers know this and self-driving cars will have their own set of regulatory controls as they become more common-place.
Have you thought of this same applicability to your business? Your company? Your organisation? You went through hula-hoops to get started. Registrations, Banking, Paperwork, Contracts, Payments, Chartered Accountants, Lawyers & many, many, many agencies.
While any authority will tell you that "driving" is a "privilege" rather than a "right" a similar mindset may be in order for everything "business" perspective. After all - the end consumer is still the same.
Similar to "compliance while driving", "driving compliance" while conducting business is analagous.
You were able to relate to the India Karnataka Bangalore short-list of driving fines. In conducting business in India there is SEBI, RBI, MCA, TRAI, IRDAI, FSSAI, FEMA, DPDPA, Ministries of Environment, Forest Products, Ocean Products, Packaging, Recycling, Water conservation, Boilers safety, Waste Management, Energy usage. A consolidated, and endless plethora of legal acts and list of clauses, many of them applicable to you, even if you do not know most of them, but not relevant till one party or the other, realizes that there is a liability and you are now liable and have been liable for years. With back-fines you now have a money problem.
When your business is starting and small, it may not be important to you, nor the authorities. It is always a cost and overhead. As your business expand the risk exposure is not linear. Over time, your liability grows logarithmically.
In India, for example, there are 782 central acts and 24,202 acts across all states. If you are pareto there at 80%+ we are all probably doing a good job. But which 80% if also important.
Some compliance can bankrupt you. Some may interrupt business and partial suspension of certain activities. Reputation may take a hit. The brand can take a hit. Stock prices can fall. Cost of borrowing will be higher. Insurance premiums are higher because you are non-compliant.
If you have not addressed it, the time to do so, is now. If it is overwhelming, list all of them. Use a scientific approach including risk registers, to list and prioritize, assign probability, impact & periodicity, to identify, measure & manage the risks around compliance. If you need an expert or experts, partner with one.
Don't you think "prevention" is better than a "cure"? Or are you leaving it to the "Will of God", "in sha Allah", "God willing", "fate", "karma", "bad luck"? Will it be more expensive or less in the short run? What about the long run?
Can you have a wonderful party full of cocktails, alcohol and the king of good times, and hope to run the gauntlet with your Ferrari through Bangalore traffic stops late at night on a Sunday? Are you taking the same chances with your business?
response@riskpro.in