A compliance program is essential for several reasons:
1. Legal Protection: Companies that implement effective compliance programs are better protected against legal penalties, fines, and lawsuits. 2. Reputation Management: Maintaining a strong compliance program helps in building and preserving the company’s reputation. 3. Operational Efficiency: Compliance programs help streamline processes, which can lead to improved operational efficiency. 4. Risk Management: Identifying and mitigating risks before they become problematic is a key function of compliance programs.