Non-compliance with certain rules can jeopardize your business. To prevent this from happening, we want to share how companies manage this important day-to-day topic and ensure that attention remains focused on business development.
First and foremost, I believe it is important to assess whether our company is complying with all key policies, rules, regulations, and contracts established with partners, suppliers, customers, employees, and shareholders. Is it fulfilling all legislation required for the conduct of its activities, such as the rules regulated by the National Land Transportation Agency (ANTT) and the applicable laws (Municipal, State, and Federal)? The Brazilian Institute of Tax Planning and Research (IBPT) has a study indicating that there are approximately 790,000 regulations in force in Brazil, with an average of 776 legislative changes per business day.
The primary impact of non-compliance with certain rules can jeopardize your business when risks are compounded, whether through the lack of an operating permit (making it impossible to carry out your operations), a penalty for failure to comply with applicable legislation, or even the termination of contracts with strategic suppliers or customers.
Faced with this scenario, large companies create a Compliance department within their organizational structure. The term can be interpreted as Conformity, meaning a function responsible for ensuring that Senior Management (Shareholders, Directors, and Managers) is aware of the risks involved and whether or not the company is meeting all applicable rules, regulations, and contracts. This function provides both preventive and corrective action, minimizing negative business impact. It becomes a major ally, delivering cost reductions and efficient risk and contingency management.
When we assess this scenario, we realize it is no different for our companies. However, we face additional challenges: we do not want to significantly increase costs, our administrative structure is already lean and lacks professionals with the required expertise, and this administrative activity ("red tape") cannot hinder our business growth.
For this reason, many companies have chosen to outsource their compliance department, enabling access to specialized advisory services across the various topics that surround their operations. The fact is that those involved in this function must understand the company's business and remain attentive not only to routine matters but also to the constant changes in the regulatory landscape.
A Apter with its 360º approach covering all aspects of your business, offers an ideal solution through our Legal Advisory practice, which we define as Compliance and Legal Services, where we can operate in a manner tailored to your needs: either taking full responsibility for your compliance department or advising on specific matters. To learn more, please contact us.
