Many businesses do an adequate job at managing organization-wide compliance. There are a few errors here and there, and some minor compliance issues, but that it just taken as part and parcel of the process. Businesses realize that they have reached the ceiling of compliance efficiency under their existing compliance frameworks and achieving anything higher will be unsustainable in the long run. Why compliance productivity plateaus Before we look at how we can go above and beyond, it is important to look at why compliance productivity plateaus.
Most organizations care about it because failing at compliance can have severe consequences. Most people will assume that the penalties levies by the regulatory bodies would be the worst offenders, but a monetary fine is probably the best thing that can happen Phone Number List to an organization after a violation, because the alternatives are much worse in comparison. Most violations are not too severe. We have all heard about million and even billion-dollar fines, but we only heard about them because they were so rare and thus newsworthy. If a business makes a small mistake, the regulatory body will levy a small fine. The fines we hear about - which can go into hundreds of millions of dollars and even go above a billion dollars - are levied on particularly egregious offenses.
The banks that are fined so high are the ones which exposed the whole banking network to risk because of poor controls, or that allowed money laundering of drug trafficking or other nefarious funding to go through the banking network by having poor KYC checks and balances. There are other, more severe consequences to having compliance vulnerabilities. If the regulatory body thinks that the management is doing a particularly poor job of implementing controls into their compliance framework and presents a danger to the banking network overall, they may even end up taking control of the bank. This is done only in the worst cases and is done to ensure that the other players in the market which frequently deal with the bank in question do not end up being damaged due to the mistakes.