The great recession of 2008 forced several entrepreneurs to shut down their businesses. Numerous individuals lost their job, had to find alternative ways of earning a living and filed for unemployment. And, these days, owing to so many unsettling economic news it seems like another recession is making its way. These economic indicators are becoming a serious matter of concern for many small businesses but how many of them are thinking of a strategic plan to survive if the recession actually hit them hard in the future? Recessions are highly unpredictable and drastically impact businesses especially the small ones. Entrepreneurs struggle to retain their assets whereas many fail to continue their ventures. Thus, whenever there are warning signs of an economic crisis, it’s best to take adequate precautions so that the business can endure and survive the downturn. The steps taken to make the organization recession-proof might look troublesome for now but they definitely pay off in the long run.
Financial crime has become a serious matter of concern for governments all around the globe. Considering the fact that such crimes often lead to devastating consequences that severely impact individuals, societies and economies, organizations need to work smarter to ensure that they are compliant with the laws and regulations and there are no loopholes in their procedures. Financial crimes can be broadly divided into two categories. The first category comprises activities that unethically generate money for those involved in financial crime, such as exploiting insider information or acquiring someone’s property by deceit for some kind of material benefit. The second category includes activities that do not directly intend to secure any benefit but are aimed at protecting or facilitating a benefit. For instance, laundering the procedures of an offense to place it beyond the reach of the law. Financial crimes not only harm the national exchequers, but the money acquired from financial crimes are also frequently used in anti-social actives with far-reaching consequences.
The human resources department has a number of compliance responsibilities under which it has to take care of various laws and regulations, both at local and national levels. Needless to mention, compliance has always been a complex area, having multilayered issues and challenges, and with the governments at various levels becoming more and more stringent about the enforcement of the laws, the HR department needs to be even more informed and skilled. Also, the laws and regulations, today, keep changing frequently and the HR professionals often find it difficult to keep up. Compliance in an organization covers a number of subjects like compensation, training programs, management practices, employee behavior and more. The HR department acts as the front line of defense for any company, and is responsible for ensuring that the employees are treated fairly, they are taken care of and the business complies with all the regulations. Also, a weak compliance program can bring significant legal risks to the business.