Maintaining a Competitive Edge in the Banking Industry
Compliance professionals know it well: the organizations that embrace compliance and adopt a culture of ethics absolutely reap the benefits from a business perspective. John Freeman, Chief Legal Officer at Tata Communications, discusses why a positive approach to compliance is essential.
Regulatory compliance often conjures up feelings of “big government,” and it’s seen by many in the corporate world as a hindrance to doing business. In today’s day and age, however, the cost of noncompliance can far outweigh the costs of compliance. Thus, many executives begrudgingly treat compliance as a necessary evil – or table stakes to merely compete within their industries.
But for companies that treat regulatory compliance as an opportunity, robust compliance programs combined with a strong culture of ethics can serve as a competitive differentiator. In fact, one recent study suggests a significant correlation between effective ethics and compliance programs and a firm’s increased performance against their competitors, especially in stock price growth.
While the cost of compliance is no doubt increasing across industries, there is none so more impacted as the BSFI industry. Banks are some of the most highly regulated businesses in…
