Top Compliance Risks for Businesses in 2025 and How to Address Them

In today’s fast-changing technological and regulatory environments, compliance risks for businesses are significant. Businesses face increasing scrutiny from regulators, customers, and other stakeholders to meet legal obligations and uphold best practices. As 2025 unfolds, here are the top compliance risks businesses need to be aware of—and strategies to address them effectively.

1. Data Privacy and Cybersecurity

With the growing prevalence of data breaches and stricter privacy laws, data protection strategies are non-negotiable for all businesses. Laws like the Privacy Act 2020 and global regulations such as the GDPR are evolving, placing higher demands on businesses to safeguard customer and employee data.

How to Address It:

• Conduct regular audits of your data handling processes.
• Implement robust cybersecurity measures, such as encryption and multi-factor authentication.
• Provide training for staff/kaimahi on data privacy and security protocols.
• Ensure your policies reflect the latest regulatory requirements and technological advancements.

2. Workplace Health and Safety Compliance

Health and safety remain top priorities, with regulators closely monitoring workplace standards. This includes ensuring compliance with the Health and Safety at Work Act 2015, particularly for higher-risk industries.  Our Health and Safety regulatory system including the Health and Safety Act is currently being reviewed. The review may result in changes affecting your policies and processes.

How to Address It:

• Regularly review and update your health and safety policies and processes.
• Engage kaimahi/staff in health and safety training and drills.
• Stay informed about the Health and Safety Review and industry-specific guidelines and best practices.

3. Environmental, Social, and Governance (ESG) Obligations

ESG compliance is no longer optional. Stakeholders demand transparency about how businesses impact the environment and society and stakeholder accountability. We all play a vital part in reducing emissions, waste management, and sustainable practices and organisations across every sector have responsibilities.

How to Address It:

• Create or update your ESG policies to align with current regulations and industry standards.
• Prevent harm to current and future generations
• Recognise that business assets and profitability rest, in the long run, on environment, social and cultural respect.
• Monitor your environmental impact and sustainable practice.
• Communicate ESG efforts to stakeholders, showcasing accountability and progress.

4. Anti-Money Laundering and Countering Financing of Terrorism 

Financial regulations require businesses to identify and mitigate risks related to money laundering and terrorism financing. Non-compliance can lead to severe penalties and reputational damage.

How to Address It:

• Ensure your policies comply with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
• Implement robust customer due diligence processes.
• Train kaimahi/staff on identifying suspicious activity and reporting obligations.

5. Employment Law Compliance

Employment law violations, such as failing to meet wage and holiday requirements or mishandling workplace disputes, can result in costly penalties and harm to workplace morale. Recent and proposed changes in Aotearoa to employment law relating to employment status, the minimum wage and personal grievances highlight the importance of staying current.

How to Address It:

• Review workplace policies regularly and employment agreements to ensure agreements align.
• Ensure all your kaimahi/staff are familiar with your policies and procedures and kept informed about changes.
• Provide training to all management levels on fair treatment and dispute resolution.
• Monitor updates to employment legislation and ensure your policies are kept current.

6. Consumer Protection and Marketing Compliance

Misleading advertising, false claims, or breaches of the Fair Trading Act 1986 and the Consumer Guarantees Act 1993  can lead to legal action and loss of consumer trust.

How to Address It:

• Ensure marketing materials comply with advertising standards and consumer laws.
• Train staff on ethical sales practices and accurate representation of products or services.
• Monitor feedback channels to identify and address consumer complaints promptly.

How We Can Help

Keeping up with regulatory changes can be overwhelming, but you don’t have to do it alone. Our policy management service takes the guesswork out of compliance. We provide:

• Policy content updated to reflect the latest laws and standards.
• Tools to track staff awareness and adherence to policies.
• Regular policy reviews to ensure your business remains compliant.

By outsourcing your policy management, you save time, reduce risks, and gain peace of mind knowing your policies are always current and compliant.

Final Thoughts

Compliance risks are an ever-present challenge for businesses, but they’re manageable with the right approach. By staying proactive and partnering with experts, you can protect your business, maintain trust, and focus on growth in 2025 and beyond.

Contact us today to learn how we can support your compliance needs!