Top Practices to Maintain Compliance and Mitigate Regulatory Risks

In just the first seven-and-a-half months of 2024, the number of newly reported Common Vulnerabilities and Exposures (CVEs) surged by 30%, climbing from 17,114 to 22,254. This sharp rise is a clear sign of how fast the cybersecurity and compliance landscape is changing.

As technology evolves rapidly and regulations become more stringent, staying compliant is no longer a simple task. It’s not just about ticking off requirements anymore—it’s about staying proactive and making sure your organization isn’t exposed to unnecessary risks that could harm its reputation or bottom line.

In this guide, we’ll explore the essential compliance practices that can help your organization stay on track, especially if you’re operating across different regions or markets. From understanding the key regulations shaping compliance today to implementing smart strategies for minimizing risk, this article offers practical insights to help you protect your organization and stay ahead of the curve in an increasingly complex regulatory world.

The High Cost of Non-Compliance

In 2024, U.S. regulators imposed over $4.3 billion in fines, with $1.06 billion directed at U.S.-based financial institutions. While global penalties decreased by 30% compared to the previous year, fines for banks soared by 522%, totaling $3.65 billion. The most alarming increase came from Anti-Money Laundering (AML) enforcement, where penalties surged 100%, surpassing $3.3 billion.

Maintaining compliance isn’t just about following rules—it’s about protecting your organization from significant risks. Here’s why it’s so important:

• The Financial Impact: These fines aren’t hypothetical—they’re happening now. As seen with the jump in penalties, non-compliance can cost companies millions. It’s a heavy financial burden that many organizations are still underestimating.
• The Reputation Gamble: The damage from non-compliance isn’t always visible in financial statements. Loss of reputation, customer trust, and investor confidence can be far more detrimental in the long run. A company’s public image takes years to build and moments to destroy.
• Operational Consequences: When you fail to comply, the fallout can extend well beyond fines. From legal actions to operational shutdowns, the consequences can freeze or even reverse your growth momentum, forcing you to rebuild.

Modern tools and constant attention keep compliance on track. Real-time monitoring and automated checks help catch issues early, preventing expensive mistakes down the road. When teams use technology smartly, they can spot rule changes quickly and fix problems before they grow. Moving away from yearly reviews to daily oversight helps turn compliance from a headache into a natural part of doing business.

What it Means to Maintain Compliance Within Your Industry

Maintaining compliance means ensuring your organization adheres to all applicable laws, regulations, and standards within your industry. While every sector faces unique challenges, the core mission remains: protecting stakeholders, managing risks, and upholding ethical practices.

Healthcare

Healthcare compliance encompasses patient data protection, medical safety standards, and emerging digital healthcare regulations to ensure quality care delivery and privacy protection.

• Regulatory bodies implementing stricter validation requirements for AI diagnostic tools
• State medical boards establishing new requirements for cross-border telehealth services
• Digital health platforms facing enhanced privacy protection requirements
• Healthcare providers adapting to expanded monitoring compliance standards

Framework	Purpose	2025 Focus Areas
HIPAA	Patient data privacy and security	AI data handling, telemedicine security
HITECH	Electronic health records protection	Cross-border data flows
FDA Regulations	Medical device and drug safety	AI/ML validation in medical devices
Joint Commission	Healthcare quality standards	Virtual care quality metrics
GDPR (for EU patients)	Data protection	International patient data transfers

Read: What is Healthcare Compliance: A Comprehensive Guide

Financial Services

Financial compliance focuses on transaction monitoring, risk management, and market stability while adapting to digital asset evolution and sustainable finance demands.

• Regulators requiring advanced real-time transaction surveillance systems
• New Custody Regulations Reshaping Digital Asset Management Requirements
• Mandatory ESG reporting standards extending across more jurisdictions
• Financial Institutions Facing Broader Climate Risk Disclosure Obligations
• 2025: New regulatory frameworks addressing decentralized finance risks

Framework	Purpose	2025 Focus Areas
SOX	Financial reporting accuracy	Digital asset reporting
Basel III	Banking risk management	Crypto exposure metrics
Dodd-Frank	Financial market stability	DeFi risk assessment
AML/KYC	Money laundering prevention	Digital currency monitoring
MiFID II	Investment service regulation	ESG compliance validation

Technology

Tech compliance centers on data protection, AI governance, and emerging security standards to protect user privacy and ensure responsible innovation.

• Global regulators introducing stricter AI oversight requirements
• Privacy Standards Expanding to address edge computing risks
• Security requirements for IoT devices becoming more comprehensive
• International data transfer regulations are growing more complex
• 2025: New standards addressing quantum computing security risks

Framework	Purpose	2025 Focus Areas
GDPR	Data privacy and protection	AI ethics compliance
CCPA/CPRA	Consumer privacy rights	Edge computing privacy
NIST	Cybersecurity standards	Quantum security prep
ISO 27001	Information security	AI system validation
PCI DSS	Payment data security	Real-time monitoring

Manufacturing

Manufacturing compliance combines traditional safety standards with new digital requirements, focusing on sustainability and smart factory operations.

• Security protocols expanding for digital twin implementations
• Smart manufacturing facilities facing new compliance obligations
• Environmental agencies mandating detailed carbon emission tracking
• Supply chain regulations requiring enhanced transparency measures
• 2025: New standards addressing industrial IoT security risks

Framework	Purpose	2025 Focus Areas
ISO 9001	Quality management	Digital twin validation
OSHA	Workplace safety	Smart factory safety
EPA Guidelines	Environmental protection	Carbon reporting
RoHS	Hazardous substance control	Circular economy metrics
IATF 16949	Automotive quality	IoT security standards

Retail & E-commerce

Retail compliance adapts to digital commerce evolution, focusing on consumer protection and emerging technology standards.

• Web accessibility requirements becoming more comprehensive
• Authentication protocols expanding for product verification
• Regulators introducing new social commerce oversight measures
• Price transparency requirements extending to dynamic pricing models
• 2025: New standards addressing AR commerce and sustainable packaging

Framework	Purpose	2025 Focus Areas
PCI DSS	Payment Security	Social commerce security
ADA	Accessibility compliance	Digital interface access
CPSC	Product Safety	AR/VR safety standards
FTC Guidelines	Consumer protection	Dynamic pricing transparency
GDPR/CCPA	Customer data privacy	Cross-border data flows

As regulatory complexities grow across industries, organizations can’t afford to rely on periodic checks alone. Continuous compliance monitoring and automation are now essential. With VComply’s sector-specific solutions, you can streamline your compliance process and reduce operational overhead while aligning with globally recognized frameworks like ISO, COSO, or NIST to ensure robust governance.

The Consequences of Non-Compliance

Non-compliance can result in severe penalties, including hefty fines, lawsuits, and reputational damage. The cost of non-compliance can far outweigh the expense of implementing a comprehensive compliance program. The fallout can also include loss of consumer trust, regulatory scrutiny, and the failure to meet business objectives.

• Financial Penalties: Fines and settlements can reach into the billions, draining resources and reducing profitability.
• Reputational Damage: Loss of consumer confidence and media backlash can have long-lasting effects, eroding market position and brand loyalty.
• Legal and Operational Disruptions: Legal actions, investigations, and operational stoppages can halt business activities, disrupt partnerships, and increase costs in the long term.

Read: Impact of Non-compliance on Organizations

Real-World Examples of Compliance Failures and Their Lasting Impact

The price of non-compliance can be steep, and the consequences often go far beyond just financial penalties. Real-world cases from across various industries show just how devastating compliance failures can be—not just in terms of fines, but in reputational damage, operational disruptions, and long-lasting loss of trust. Here are some standout examples that underscore the critical importance of maintaining compliance.

Goldman Sachs and the 1MDB Scandal

One of the most infamous compliance failures in recent years was Goldman Sachs’ involvement in the 1MDB scandal. The investment bank was accused of failing to follow anti-money laundering (AML) controls when it facilitated questionable transactions related to the Malaysian sovereign wealth fund. 

The aftermath was grim: $2.9 billion in penalties, along with irreparable damage to the firm’s reputation.

What’s striking about this case is that it wasn’t a simple oversight. It was a systemic breakdown of compliance practices at multiple levels. Goldman Sachs’ failure to maintain compliance with AML regulations not only cost them billions but also eroded trust in their business practices. 

For any organization, this kind of reputational damage can take years to recover from, and in some cases, the effects are permanent.

MGM Grand & The Cosmopolitan: A Case of AML Missteps

In another high-profile case, MGM Grand and The Cosmopolitan, two major Las Vegas casinos, were hit with $7.45 million in fines for violating AML regulations. The casinos failed to report suspicious transactions tied to an illegal sports betting ring, which was operated by a criminal named Wayne Nix. 

The situation escalated because the casinos didn’t properly vet the source of funds, a critical step in anti-money laundering controls.

What made this case even worse was the involvement of Scott Sibella, the former MGM Grand president, who admitted to not reporting these transactions between 2017 and 2022. 

His actions (or lack thereof) allowed illegal betting to continue under their roof, ultimately exposing the casinos to financial penalties and a tarnished reputation. This is a classic example of how failing to maintain compliance can snowball into major risks—not just financial but operational and reputational.

Boeing 737 MAX Crisis

The Boeing 737 MAX disaster is a striking example of how compliance failures in safety regulations can lead to catastrophic outcomes. The company was found to have failed to disclose safety risks related to the aircraft, which led to two fatal crashes and the global grounding of the entire 737 MAX fleet.

The direct fallout included a $2.5 billion settlement, but the long-term damage was far worse—Boeing’s reputation and its relationship with customers, regulators, and the general public were seriously harmed.

This case serves as a reminder of the critical importance of maintaining compliance, not just in financial or operational matters but also in safeguarding public safety. 

These examples highlight the immense risks organizations face when compliance lapses occur. However, what often gets less attention is the cascading impact of such failures. Beyond hefty fines, the reputational damage, operational upheaval, and erosion of customer trust can far exceed the immediate financial penalties.

For businesses aiming to avoid such outcomes, compliance must go beyond a checklist—it needs to become an intrinsic part of the organizational culture.

Adopting key practices like consistent monitoring, clear reporting, and fostering transparency can help identify and mitigate risks early. With a solution like VComply, companies can simplify compliance management, ensuring their programs are integrated and effective across all levels of the organization.

Best Practices to Maintain Compliance and Mitigate Regulatory Risks

Regulatory compliance shapes how businesses operate and grow in virtually every industry. The right compliance practices not only protect organizations but drive sustainable growth and build stakeholder trust.

The key to effective compliance lies in practical, actionable strategies that work across different business contexts. Whether you’re a growing startup or an established enterprise, these proven practices can transform how your organization approaches compliance. Let’s look at what really matters:

• Start with clear ownership

Every department needs a compliance champion who understands both the regulatory requirements and day-to-day operations. These champions become the bridge between your compliance team and frontline workers.

• Conduct regular audits

Regular audits go beyond meeting regulatory requirements—they provide an opportunity to identify weaknesses, enhance processes, and support continuous improvement. Routine internal audits, complemented by periodic external reviews, help validate compliance efforts and uncover areas for refinement. Using audit management tools can simplify the process, making it easier to track, document, and act on findings effectively.

• Create effective, practical policies

Build clear, accessible guidelines that serve as a solid foundation. Avoid lengthy documents that go unused, and instead focus on concise, actionable policies that teams can easily apply. Use reliable templates as a starting point and adapt them to fit your specific needs.

• Make compliance part of everyone’s job

The strongest programs seamlessly embed compliance into everyday workflows and systems. When it’s integrated into regular processes rather than treated as an add-on, adherence becomes second nature.

• Use tools that help, not hinder

Modern compliance management platforms like Vcomply streamline documentation, automate monitoring, and generate real-time insights. This frees up your team to focus on what matters: analyzing trends, spotting risks, and solving real problems before they escalate.

• Build a speak-up culture 

Employees need to know they can raise concerns without fear. Whether it’s spotting potential conflicts of interest or raising ethical concerns, companies that handle this best make reporting easy and follow up consistently. They protect whistleblowers and celebrate people who flag issues early.

• Keep learning and adapting

Regulations change. Business changes. Your compliance program needs to keep up. Regular reviews, honest feedback from employees, and a willingness to adjust course when something isn’t working – these are hallmarks of programs that last.

• Team training that sticks

Skip the boring slideshows. Use real examples from your industry. Make it relevant to people’s actual jobs. The best training sessions I’ve seen mix practical scenarios with clear explanations of why compliance matters.

• Track what matters

Focus your metrics on outcomes, not just activities. Don’t just count how many people completed training – measure whether behaviors actually changed. Look for leading indicators that can help you spot problems early.

• Learn from incidents to strengthen your compliance program

Every incident, whether minor or major, is an opportunity to improve. A structured approach to incident management helps organizations identify root causes, address gaps, and implement corrective actions to prevent recurrence. 

By documenting and analyzing incidents effectively, you create a feedback loop that continuously enhances your compliance framework. Using case management tools allows teams to track, investigate, and address incidents efficiently. This organized approach helps improve processes and fosters a more robust compliance framework.

Strong compliance isn’t about having the most policies or the fanciest software. It’s about creating an environment where doing the right thing is the easy thing. When you get that right, compliance becomes a competitive advantage, not just a cost center.

Wrapping Up

The path to effective compliance isn’t about having the most policies or the strictest controls. It’s about building smart, sustainable practices that protect your organization while enabling growth. By focusing on clear ownership, ongoing training, and leveraging the right tools, you can transform compliance from a burden into a business advantage.

The regulatory landscape will keep evolving, but the fundamentals of good compliance remain constant: clear processes, engaged employees, and systems that make doing the right thing easy. Whether you’re just starting to formalize your compliance program or looking to strengthen existing practices, these strategies can help you build a more resilient organization.

Want to see how modern compliance management can transform your organization? Schedule a free demo of VComply today and discover a better way to maintain compliance.

Achieve Compliance with Confidence

Stop wrestling with spreadsheets and fragmented tools. VComply brings your entire compliance program into one powerful platform – from risk assessments and policy management to audit tracking and real-time monitoring. Our solution seamlessly integrates with your existing frameworks while automating the tedious manual work that bogs down compliance teams.

Ready to revolutionize your compliance program? Start your free 21-day trial and see the difference structured, automated compliance management can make.

Maintaining compliance doesn’t have to be overwhelming. Equip your organization with the tools and insights needed to navigate global regulations seamlessly. Learn how to build a compliance program that works for you.