Compliance and Its Implications

The video tutorial explains compliance as the process of adhering to standards set by laws, regulations, or agreements. It highlights the importance of compliance, potential penalties for non-compliance, and the role of compliance officers. Examples of regulatory compliance like Sarbanes-Oxley, HIPAA, and GLBA are discussed, along with the financial and reputational impacts of non-compliance, as illustrated by the Uber breach case. The tutorial also covers compliance monitoring, due diligence, and the use of automated systems to ensure ongoing compliance.

What is one of the potential consequences of failing to meet compliance standards?

• Increased sales

• Fines or penalties

• Improved reputation

• Higher employee morale

Who is typically responsible for ensuring an organization meets compliance requirements?

• Marketing Director

• Compliance Officer

• Chief Financial Officer

• Human Resources Manager

Which act is associated with ensuring the privacy of medical information in the United States?

• Sarbanes-Oxley Act

• Graham-Leach-Bliley Act

• HIPAA

• Dodd-Frank Act

What was the financial penalty Uber faced due to their data breach?

• $200 million

• $50 million

• $100 million

• $148 million

What is a potential impact of non-compliance on a company's reputation?

• Improved employee satisfaction

• Reputational damage

• Stock price increase

• Increased customer trust

What is the term for the internal activities a company performs to ensure compliance?

• Due care

• Due diligence

• Risk assessment

• Quality control

What is the purpose of automated compliance monitoring systems?

• To increase company profits

• To ensure compliance information is up-to-date

• To improve customer service

• To reduce employee workload

What is the role of attestation in the compliance process?

• To verify financial statements

• To confirm compliance status

• To improve marketing strategies

• To enhance product quality

What is the difference between due diligence and due care?

• Both are internal processes

• Both are external processes

• Due diligence is internal, due care is external

• Due diligence is external, due care is internal

Why might a company automate its compliance processes?

• To reduce costs

• To ensure consistent compliance

• To increase employee satisfaction

• To improve product quality