As Businesses Withdraw From China, Compliance Is On The Mind

Shifts in international law and compliance rules have seen unprecedented changes in where businesses are willing to do business. This has culminated with the extraction of Yahoo from China, according to US News, due to what has been described as an “increasingly challenging” business-legal environment. The emergence of tech and new business rules has caused significant disruption for digital business everywhere – getting to the bottom of the matter and establishing a new foundation when it comes to compliance is essential.

Several major events have exposed businesses to risk in recent months. Reuters notes the Pandora Papers as one key event that has exposed businesses, but in truth, international business trends have moved businesses to a space where they need to be minimizing risk in order to continue growing. A compliance-centric model is now essential, especially for those businesses that have generated new levels of digital business following the downturn of the face-to-face economy globally.

Much of this new demand for compliance is driven by the smart revolution. Billions of people were already subscribed to digital tools and IoT devices prior to the pandemic. The need for clean, digital solutions has moved many more millions of services online, creating huge swathes of new data processing and new risk points. Addressing this effectively is a key objective for any business, and will help to prepare for future growth. It is essential that businesses are compliant now to build for the future.

According to Deloitte, these developments have left many businesses at a crossroads. Most particularly, the roles of legal and technical officers are becoming rapidly intersected. Also, according to Deloitte, it will soon be apparent that businesses looking at their compliance efforts need to take a holistic approach to their work and ensure that every box is ticked. This is increasingly difficult to do from one technological or professional standpoint, and so cross-culture working is absolutely necessary to ensure that all compliance needs are met and businesses are meeting the regulatory requirements placed on them by the federal and state authorities.

Arguably, this shows that businesses, now more than ever, need to take responsibility for their actions in the digital sphere and work in a collaborative manner. Making compliance the business of every single area of the business will help to ensure every employee and data-set is in line.