Certain persons are interested in the company's compliance risk management system. Let's look at them in more detail.
Shareholders (business owners)
As a rule, these are very busy people who do not like to listen to long presentations about how dangerous this or that threat is and what consequences it may lead to. At the same time, most often they are not interested in the risk itself and ways to minimize it, but in how much it can be mitigated and whether it is possible to eliminate it completely.
Who needs compliance?
A compliance system is vital for shareholders. It can minimize the threat of long and painful inspections by regulatory authorities, lawsuits and proceedings. It can help save fantuan database the company's financial resources: if you minimize the possibility of a particular compliance risk, you will not have to spend money on fines and the work of consultants, lawyers and attorneys in the future. The compliance system helps maintain the company's reputation, the loyalty of clients, partners and suppliers.
Investors
In most cases, these people are hired risk managers, IR managers of institutional investment corporations or employees of large financial institutions, working according to their own standards and approved internal rules. Thus, investors are limited by the rules of the compliance system of the enterprise they work for, in addition, each exchange has its own internal standards and regulations, which must also be taken into account.
To effectively invest money in stocks or securities and enter a stock exchange, companies often hire a compliance manager who works out the risks in detail from all sides and helps the organization enter the chosen platform.
Often, after going public, investors feel quite stable. But over time, compliance managers will have serious questions about the reliability of securities. Most likely, investors will ask their IR managers numerous questions about the securities they invested in. And if the answers do not match the available data (for example, annual financial reports or information from partners), the question of getting rid of such assets will arise immediately. However, negotiations on this decision may drag on, which will subsequently lead, at best, to a loss of investment, at worst - to litigation.
Investors
Before investing in securities of a particular company, it is necessary to study all possible threats. For example, the implementation of compliance risks of banks or other financial institutions wishing to invest their financial resources in a company may in future periods threaten huge fines, a ban on entrepreneurial activity in the main assets and areas, endless litigation and inspections by regulatory authorities.
History knows many examples when, for example, the implementation of compliance risks of violating antitrust laws led to a sharp decrease in the value of shares of even large international corporations.
All this emphasizes the need for compliance control for any investor. A qualified assessment of potential threats allows him to receive larger dividends from his investments in securities in the future, as well as to be sure that in the event of unforeseen or force majeure circumstances he will be able to fully return all invested funds.
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