How to Navigate Risks in Today’s Global Regulatory Environment
Today’s corporations face multiple risks affecting their strategic, financial, and operational objectives. The dynamic regulatory environment and innovations force businesses to identify their shortcomings and change their strategic plans.
If companies wish to mitigate problems, losses, and risks, they need corporate policies, procedures, supervision, and harmonization to support them in their corporate governance.
Risk management helps businesses improve their performance, increase worldwide recognition, achieve strategic aims, and avoid or mitigate obstacles to their presence, growth, and sustainability in pursuit of their goals. Thus, a company can systematically assess its potential risks, prevent losses and make solid decisions while identifying, evaluating, and controlling potential threats to future success.
Regulatory Compliance Is Key to International Business
Turkey’s regulatory landscape obliges companies to follow the Turkish Commercial Code, the Act on the Protection of Competition, and the Law on the Protection of Personal Data. Therefore, Turkish companies must recognize, obey and keep abreast of the applicable legislation and sector-specific regulations. For instance, the health, construction, energy, and chemicals industries must respect the appropriate environment and security rules. The Banking Regulation and Supervision Agency and the Treasury rules are essential for the finance industry. At the same time, those of the Capital Markets Board of Turkey are crucial for public companies.
Foreign investors prioritize corporate compliance mechanisms that are easily auditable. Therefore, international corporations must follow global rules and standards such as the UK Bribery Act, the U.S. Foreign Corrupt Practices Act, the EU Anti-Trust Policy, Money Laundering Act, and the General Data Protection Regulation, regardless of their operational territory.
Strict Regulatory Requirements and High Penalty Rates
Regulations embody principles that determine the political limits of government intervention and practices that aim to expand the global economy with lawful activities, encompassing legal, economic, social, and political components. Despite their broad scope, regulations must be respected as a coherent and harmonized set of rules.
The ever-growing demands of regulatory compliance, the obligation to perform business activities and transactions in compliance with the legislation, and the increasing competition between companies force national and international corporations to follow various legislation to meet their sector-specific standards. If companies fail to meet their requirements, regulators might impose high administrative fines and penalties.
Globalization has resulted in more strict and complex standards, rules, and regulations for any industry worldwide. Thus, new regulators are emerging while the existing authorities are becoming more stringent by increasing their controls and imposing higher penalty rates.
Infringements of legislation cause severe penalties for companies, especially financial institutions, resulting in financial losses and reputational damage.
How We Can Help You
Şengün & Partners’ Risk Management and Regulatory Compliance Center have various offerings to ensure regulatory compliance. We help you manage your sector-specific risks that might challenge your business objectives, including legal, strategic, financial, contractual, operational, and regulatory risks, as well as the risks of compliance, credit, liquidity, sustainability, investment, project finance, cyber security, project, occupational health and safety, environmental and safety, along with third-party risks, trademark risk, and reputation risk. We support you in building a solid corporate management structure, conducting sustainable and efficient audits, and organizing your compliance processes. We are committed to preventing risks and analyzing and reporting their possible effects on your activities by adopting the right strategy for your risk management. Thus, we integrate the risk assessment results into the decision-making processes.
We aim to perform the necessary risk analyses and assessments for your sector and business, conduct in-depth due diligence, determine the right risk management strategies, foresee local and global regulatory risks, assess the risk status of your organization, identify your business risks, conduct a risk impact assessment and prioritization to define an internal risk terminology, create business plans and roadmaps to minimize the risks and obstacles to your goals, monitor the compliance process and the relevant controls, eliminate the shortcomings, and establish a sustainable regulatory system at your company.
We keep abreast of critical regulators' latest resolutions and legislation, namely the Personal Data Protection Authority, the Competition Authority, the Banking Regulation and Supervision Agency, the Capital Markets Board of Turkey, and the Energy Market Regulatory Authority. We follow the current national laws and international developments, and regulations to make analyses that can directly or indirectly impact your projects, investments, and activities. We also publish media releases and short articles on the current legislation, follow the necessary legal practices, work on mandatory compliance procedures, create checklists, organize training, make due diligence studies on potential risks and write risk assessment reports on our findings. We are determined to identify your current shortcomings and write words describing the necessary measures and our recommended solutions for eliminating hazards before they become risks. We also offer on-demand training to companies on regulatory compliance and risk management. In case of non-compliance, we notify and assist you in avoiding any penalties and fines.
Our holistic approach helps you minimize the risk of future liabilities, indemnity, and other claims.