What are compliance issues?

Compliance issues are issues that relate to organizations and individual employees regarding laws, regulations, rules, guidelines, and ethics that govern specific organizations and specific industries companies operate in.

No matter the size of a particular business or organization, and no matter the industry that business or organization is in, there are certain laws, regulations, and guidelines that all must comply with as part of their operations.

Regulatory compliance standards and laws are often provided by the federal government or branches of the federal government, like the Occupational Safety and Health Administration (OSHA), or the Equal Opportunity Commission (EEOC).

The specific requirements of regulatory compliance can vary depending on these factors:

• The industry the business operates in

• The type of business an organization is involved in

• The size of the business

• The specific operations and activities that the business is engaged in

Compliance issues can occur when an organization is not following the regulations and laws that govern its industry.

However, it can also happen when an organization or its employees violate internal company policies. This can happen in broad terms like with particular company strategies, or on a more micro-level, like when specific employees within a company are not adhering to internal company policies concerning ethics or other important areas.

There are many different types of compliance issues. Here are some of the most common:

• Corruption or illegal behavior

When an organization stays in legal compliance, it makes sure all of its employees, and the company as a whole, adhere to any laws or regulations that apply to its industry. Compliance issues in this area include activities like money laundering, theft, bribery, and embezzlement.

• Breaches of privacy

One of the common compliance issues is when organizations violate privacy laws. Companies sometimes handle extremely sensitive customer or member information, and this data can be subject to hacking, viruses, or malware intended to steal it if organizations don't take the right cybersecurity measures. All companies must take preventative actions regarding this matter.

• Environmental regulations and laws

Compliance issues in this area are associated with issues like pollution, environmental damage, and sustainable practices. Organizations are in compliance if they engage in any activities that threaten the welfare of the environment, such as using harmful chemicals or substances, and deforestation that results in the destruction of habitats in certain regions.

• Process risks

• Workplace safety and hiring practices

Regulatory compliance standards and laws are often provided by the federal government or branches of the federal government, like the Occupational Safety and Health Administration (OSHA), or the Equal Opportunity Commission (EEOC). These are just two prime examples, but there are often many different governmental contributors to the regulations of an industry.