COST OF NON COMPLIANCE IN BRAZIL

Abstract

It is well known that organizations in all sectors must comply with privacy and data protection laws and policies designed to protect sensitive individuals and confidential information. Compliance requires organizations to adopt and implement a variety of measures related to processes, people and technologies, all of which involve an intrinsic cost to implement and monitoring. However, despite these costs, there is already a lot of research into what the cost of non-compliance might be, namely the liabilities - and risks - to which legal entities are subject because their employees conduct is not adapted to national and international norms. Therefore, the focus of this study topic “Costs of Non-Compliance in Brazil” is a legal analysis of the risks and losses caused by the absence of an effective compliance program in the business world, observing the national and international sanctions applied due to non-compliance with laws or in the event of unlawful conduct, such as corruption (public or private). The work however, will be limited to carrying out this analysis from the perspective of private legal entities, whether national or international, exclusively in Brazil. This paper, however, will be limited to carrying out such analysis from the perspective of legal entities under private law, national or international, exclusively in Brazilian territory, using deductive methodology to develop the concepts of the research objects through bibliographic exploration, and qualitative methodology with case studies. In the end, the result of the research demonstrated that, although the operational costs are high in the implementation of compliance systems, these are small when compared to the risks that companies may eventually face, often without knowing it, in the eventual hypothesis of not implementing effective compliance systems, which will serve not only to control their activities, but also as a risk mitigator, which, per se, already justifies their investment, especially in highly regulated business environments such as the Brazilian one.