LIABILITY is COSTLY
Ask anyone who has become embroiled in any form of enforcement litigation, whether it is administrative, civil or criminal in nature, or whether brought by the government or a citizen. The legal and transactional costs of merely responding to allegations of non-compliance are srccp. The costs of proving comphiance are heart-stopping.
Cost cannot fairly be measured only in terms of the costs incurred in defending a claim. The real costs are much higher and more subtle. The cost of dirninished public confidence, enhanced competitor standing, potenrial share value, compromised relations with federal and state regulators, public relations implications, insurance rares and damage to corporate image are but a few of thc true “costs” incurred when a firm is alleged to be in a state of non-compliance.