External Considerations
External considerations shape an organization’s compliance, operations, and strategic decisions. They ensure adherence to laws, industry standards, and global trends, and may influence an organization’s success, risk mitigation, and ethical conduct in an interconnected world. These considerations include several factors, described in the following list:
- Regulatory: Governments and regulatory bodies enact laws and regulations to ensure fair practices, protect consumers, and maintain industry standards. Staying compliant with these regulations is essential to avoiding legal consequences and maintaining public trust. Whether it’s data privacy, financial reporting, or environmental standards, organizations must navigate the intricate web of regulations that apply to their industry and jurisdiction.
- Legal: Legal factors encompass not only regulatory compliance but also broader legal issues that organizations face, such as contracts...