Legal Compliance Risk
What is Legal compliance risk?
Legal compliance is the procedures that are implemented to make certain that a company follows the regulations, laws, and rules, established by Work, Health & Safety. Recently there have been additions to legal compliance to determine if certain work places are adhering to ethical codes established for the workplace.
What is Legal compliance risk like?
Legal compliance risks are like the risks a sports team takes if they do not follow the safety program, or the code of conduct, established by their governing body. If a sports team discriminates against certain players because of their race, sexual orientation, religious beliefs, or gender, they are apt to be sued for denying everyone the right to try out for the team. This action would be unethical, and illegal. If the team did not follow the guidelines established by the governing body for the sport they participate in then the team would be in violation of league rules and they could be kicked out of the league they played in. Legal compliance risks make certain that every company follows the rules, and regulations established for them by WHS laws so that every employee has the same level of protection.
What is the impact of Legal compliance risk on an organisation?
The impact of legal compliance risk on an organization is that the organization is protected from lawsuits, fines, and penalties, for not complying with the WHS laws and regulations. The workers of an organization are impacted by getting a safer place to work, wages that are fair, workers compensation for injuries they receive on the job, and ways to report abuses they might suffer, like bullying, or sexual abuse.
What is the principal structure of Legal compliance risk?
The principle structure of legal compliance risk is as follows:
- The organization educates themselves on the relevant laws, regulations and business rules that apply to their type of organization
- The organization determines what practices they need to implement to make certain that employees are safe, that ethical concerns are addressed, and that each employee knows their rights as an employee, and how to report incidences they think are unfair
- The organization sets up a system of checks and balances to make sure that they stay in compliance with all relevant laws, regulations, and business rules. This may include establishing a committee of employees that speak for the entire group of employees when there is going to be a change in policy, or procedure within the organization
What are the different types of Legal compliance risk?
There are several different types of legal compliance risk. These include, but are not limited to:
- Self-monitoring for compliance infractions
- Governmental monitoring for compliance issues
- Obedience to the pertinent laws that govern the particular business type
- Fair treatment of all cases
- Employee notification of changes
- Employee training and supervision to ensure proper communication between management and the workforce
What terms are used when identifying Legal compliance risk?
Some of the common terms you will hear concerning legal compliance risk are:
- Legal consistency – meaning that there is one way to handle each type of infraction and that no person will be treated differently because of their stature within the organization, their gender, their race, their religious beliefs, or their sexual orientation
- Compliance – is the act of following as set of laws, or rules, that have been established
- Indiscretions – are acts that went against the rules
- Obligational completeness- is a contract that clearly defines what the consequences of any action are without regards to the person who committed the indiscretion
- Ethical – is pertaining to what the general society thinks as being the correct, or moral thing to do in a given situation
- Enforceability – is whether a rule, or regulations, established by an organization has legal precedence that would hold it up in a court of law
- Legal governance – is a set of checks and balances that are put into place to ensure that the different departments of an organization are following the established guidelines set out by the legal department
Where can I find more information about a Legal compliance risk?
For more information on the subject of legal compliance risk you can visit the following websites.