industry
5 min read
Introduction
Non-compliance in high-risk industries can expose your organisation to massive fines, reputational damage, and even legal consequences for your leadership team. For example, Morgan Stanley faced penalties exceeding $95 million after two data breaches exposed their failure to meet compliance standards in data management and IT decommissioning. Such cases highlight the challenges of ensuring compliance and the devastating costs of failing to do so.
But it’s not all doom and gloom. Modern solutions now exist to help industries close compliance gaps and regain control, even in the most complex environments.
This blog will explore:
The risks and consequences of non-compliance in high-risk industries
Factors driving compliance challenges today
Practical solutions to ensure compliance and reduce risks
How LAAMP, an compliance platform, can help mitigate costs and simplify workforce compliance
By the end of this guide, you’ll have actionable strategies to minimise non-compliance penalties and take control of your organisation’s risk management.
The Problem with Non-Compliance in High-Risk Industries
High-risk industries such as mining, construction, and healthcare face greater scrutiny when it comes to compliance. Regulatory bodies enforce rigorous standards to protect employees, consumers, and the public. However, failing to comply can lead to crippling fines, legal battles, and hazardous workplace incidents.
Take Morgan Stanley’s case, for example:
2016 and 2019 Data Breaches: Poor decommissioning procedures for IT systems caused sensitive data to leak during auction resales.
Penalties: By 2020, the United States Office of the Comptroller of the Currency (OCC) imposed a $60 million fine.
SEC Follow-Up: Additional lapses resulted in $35 million in fines from the Securities and Exchange Commission.
The cost here isn’t just monetary, it damages company reputation and creates public mistrust. Leadership teams are left questioning how such preventable gaps occurred in the first place.
Similar mistakes have occurred in other industries:
A 2017 data breach at Equifax cost the company $575 million in compensation after an unpatched system was exploited.
Workplace safety violations across construction industries in Australia have delayed multi-billion-dollar projects and led to dangerous conditions for employees.
Whether it’s IT negligence, environmental breaches, or lapses in safety, the consistent thread is lack of oversight and outdated processes.
Why Are Compliance Challenges Growing?
Today’s industries are more interconnected and reliant on technology than a decade ago. This brings new complexities:
Growing Use of Technology: Large organisations now use over 175 applications to manage day-to-day business operations, a number that continues to grow annually. This increases the risk of oversight and missed updates.
Decentralised Workforces: With remote workforces spanning multiple sites, managing compliance without clear visibility is increasingly difficult.
Manual Processes: Many companies still rely on spreadsheets and isolated records to manage workforce compliance, leaving critical gaps in risk monitoring.
Data Volume Explosion: With the rise of big data, securing sensitive information becomes a progressively harder battle.
These issues, coupled with changing regulations, make compliance a growing challenge for even the most diligent organisations.
The Cost of Non-Compliance
What’s at stake if your organisation fails to comply? Here are some key risks:
Financial Penalties
Non-compliance fines can quickly reach millions or even billions of dollars. Those funds could have gone toward innovation, employee development, or safety improvements.
Reputational Damage
Losing the trust of clients, investors, and employees has long-lasting effects on your business. A damaged reputation takes years (and significant resources) to rebuild.
Operational Disruptions
Failing audits or non-compliance penalties can halt operations. For high-risk industries, this can delay projects or shut down facilities, with compounding financial losses.
Legal Exposure
Leadership teams may personally face legal consequences for failing to meet their duty of care. This includes fines, sanctions, and loss of professional credibility.
It’s clear, the cost of ignoring compliance processes far outweighs the effort required to maintain them.
The Solution to Ensuring Compliance
Non-compliance isn’t inevitable. With the right tools and strategies in place, organisations can transform compliance from a challenge into an operational strength.
1. Invest in Real-Time Tracking
Ensure instant visibility into everything affecting compliance—from safety equipment certifications to software patches. Automating this data tracking reduces human errors and gives your team accurate, actionable insights.
2. Automate Compliance Processes
Manual processes are a key contributor to lapses in compliance. Use automation to:
Regularly verify qualifications and credentials
Schedule safety training and compliance audits
Issue alerts for required updates or expiring certifications
By automating these repetitive tasks, your team can focus on high-impact priorities while minimising risks.
3. Develop Centralised Frameworks
Establish a unified digital platform that can monitor every aspect of compliance, including:
Worker certifications and skills
Asset maintenance schedules
Risk-management protocols
By using one system, you’ll improve visibility and simplify governance for leadership teams.
4. Create Comprehensive Audit Trails
Unclear or incomplete audit trails can lead to disaster in the event of incidents or investigations. A system that provides secure and centralised documentation ensures you’re always one step ahead when audited.
5. Train and Develop Your Workforce
Educating employees about your compliance objectives ensures that everyone—regardless of their role—understands their responsibilities. A prepared workforce is a compliant workforce.
6. Integrate Compliance Technology Solutions
Modern compliance platforms like LAAMP take these practices to the next level by integrating learning, compliance, and workforce planning into one seamless system.
How LAAMP Makes Compliance Easy
The Learning and Assessment Management Platform (LAAMP) is a powerful workforce compliance solution designed with high-risk industries in mind. Whether you’re managing a distributed workforce or dozens of moving parts, LAAMP simplifies processes to protect your organisation.
Key Features of LAAMP:
Automated Workflows: Manage training, compliance tasks, and risk assessments with ease.
Real-Time Reporting: Get instant visibility into workforce compliance metrics.
Digital Evidence Capture: Keep secure, comprehensive records of employee certifications and assessments.
Transferable Passports: Allow employees to carry credentials between projects and organisations, enhancing workforce flexibility.
Audit Trails: Maintain permanent, up-to-date records necessary for regulatory reporting.
Unlike manual compliance methods, LAAMP’s advanced automation and reporting give you control, confidence, and clarity.
Protect Your Business (and Bottom Line)
Switching to a workforce compliance platform like LAAMP not only prevents costly non-compliance penalties but also enhances operational efficiency. With reduced administrative efforts and greater insight, you’ll be free to focus on driving innovation.
Best of all, LAAMP is tailored to high-risk industries, including mining, construction, and healthcare. With a platform built for industry by industry experts, you can trust that nothing is overlooked.
