When a company starts a professional appraisal in order to analyse investments, two aspects are taken into account: the expected profitability of the project according to the initial plan and the overall level of risk associated with the project in question. And it is with this information that they can recommend taking on low-risk projects with a lower return than others with a higher return that are discarded due to the higher level of risk. This means that a higher risk for a company means a higher cost for attracting and retaining financial resources, either through external financing or equity investment.
Investment in compliance is necessary to guarantee the correct development of a company, as it helps to reduce costs and reduce risks, thus guaranteeing the continuity of the company in the best possible conditions. This investment provides us with the time to guarantee the return on this investment, that is, to reduce and reduce those costs that arise from unforeseen events, which are impossible for the entity to prevent. In short, it is a matter of increasing the forecast of continuity and profits of the company, managing at least the costs derived from the lack of foresight and risk control.
Investing in Compliance is investing in protecting the organisation internally and externally, strengthening it through the review and transformation exercise that comes with the adoption of a commitment to compliance, ensuring a favourable perception by the market and the society in which it operates.
For this reason, at LEGAL NOTES SLP we recommend investment in Compliance, based on the evidence and certainty that planning, analysing, preventing and preparing to manage the uncertainties that all business entails is good for ensuring the life of the company and reducing the damage derived from the risks to which it is exposed.
By Tamara Contreras García.