Compliance Reporting + Consequences of Noncompliance + Compliance Monitoring

Internal reporting

typically involves regular reports to the management or the board, highlighting the state of compliance, identifying gaps, and providing recommendations

External compliance reporting

is mandated by regulatory bodies or as part of contractual obligations. It involves providing necessary documentation and evidence to external entities to demonstrate that the organization is in compliance with relevant laws and regulations

Consequences of Noncompliance

• Fines

• Sanctions

• Reputational damage

• Loss of business

• Legal action

Due care

a complementary concept, refers to the ongoing efforts to ensure that the implemented policies and controls are effective and continuously maintained

Part of due care

invovles attestation and acknowledgment

Acknowledgment

means ensuring that employees and business partners state that they are aware of the compliance requirements

Attestation

means that they are aware of those requirements but have also confirmed that their practices adhere to these policies

Internal monitoring

inclues internal audits, reviews, and checks to ensure that the organization follows its policies and meeting legal requirements

External monitoring

involves third-party audits and assessments, which provide an unbiased view of the organization’s compliance status