3 Reasons Regulatory Non-Compliance Is Holding Your Business Back

In the daily business of running your organization, compliance may seem like another batch of red-tape paperwork. Complex and regularly updated legal requirements are a challenge to understand. The demands sometimes require expensive compliance experts and software. It can seem like every decision you make needs to be run through the filter of compliance. You just want to run your business and do your job! But regulatory non-compliance can cost your business in the short term — and into the future.

From the direct expense of fines, to the immeasurable expense of a damaged reputation with customers and consumers, non-compliance will hold your business back for years to come. Having a robust compliance plan in place will help you avoid the expense of non-compliance and strengthen your business for a profitable future.


The most direct and obvious way regulatory non-compliance will cost your business is in the form of fines and penalties. If you are found to be non-compliant, violations can cost you a significant amount of money each day. For instance, Spill, Prevention, Control, and Countermeasure (SPCC) violations can cost you almost $40,000 per day in fines from the Environmental Protection Agency (EPA).

It is better to invest in being compliant from the beginning than having to pay fines, after which you will still have to spend the money to achieve compliance. If you are behind in developing your compliance plan, start now rather than waiting to be penalized.

The Expense of Mistakes

Compliance may seem like it’s costing you a lot of money, but the expense of not following regulations will cost you more in the future. You will eventually have to comply and correct the mistakes that might have taken place during a period of non-compliance. Sometimes these mistakes can be even more costly than correctly adhering to regulations in the first place.

Maybe you’ve supplied a non-compliant part to a customer, and the customer is now requiring you to re-supply a compliant part at your expense. You will need to have an action plan to find a replacement part, material or supplier for the non-compliant part. You might also have to invest in research and testing, another cost you will have to absorb. Not only will this cost you time and expense, it could also jeopardize your relationship with your customer.

Making your business compliant after a period of non-compliance will come with a variety of expenses, such as consulting fees, compliance software and training costs, modifications to your facilities or manufacturing process, the lost time of needing to revamp your process, not to mention the potential fines and penalties.

It is better to be proactively compliant instead of waiting for an interruption to force compliance. You should regularly survey your own supply chain as a preventive measure so you can be prepared for changing regulations and have a plan in place if non-compliant products are discovered. Staying ahead of the game when it comes to compliance will save you time and money in the long run.

Loss of Reputation

A reputation of non-compliance will cost your business for years to come. Not only will your own customers potentially disappear, but other prospective customers will get word of regulatory violations and avoid working with your business.

Supply chain norms are changing. Learn how to adapt to stand out among your competitors!

Regulations exist for a reason: to protect people and/or the environment. Being non-compliant means you are putting someone or something else in the world at risk, when instead you could be an example of corporate responsibility.

You want to be a business that others want to work with, and meeting compliance regulations will show your organization’s forethought and responsibility.

Get Compliant

If you are looking to meet compliance regulations after a period of regulatory non-compliance, there are several steps you can take:

  1. Keep a pulse on the regulations your organization needs to comply with.
  2. Understand the ins and outs of customer quality requirements and government regulations, as well as the consequences for non-compliance.
  3. Build a team of compliance experts, dedicated to keeping your operations on-track with all standards and regulations.

Become a certified regulatory compliance expert today—with Tetra Tech online IMDS, CDX or OEM-custom training!

Regulations are constantly changing, and new regulations are popping up all the time. Keeping your team informed and trained on changing regulations is the best way for them to assist your supply chain and your customers — and to keep your organization compliant.

Stand out to customers as a trusted supplier with an expert compliance team, ready to meet all necessary regulations and keep products on the global market. Explore Tetra Tech’s online compliance trainings, covering IMDS, CDX and SPCC. Or contact one of our compliance experts. Tetra Tech can assist your business in developing a robust compliance program.


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