The Business Risks of Ignoring Internationally Recognised Standards

Every business faces risks, but some risks come from within the company’s own choices. One of the biggest risks is ignoring internationally recognised standards. These standards exist to ensure quality, safety, efficiency, and trust across industries and borders. When a business chooses not to implement these standards, it exposes itself to serious problems that can affect reputation, operations, and profitability.

This post explores how neglecting internationally recognised standards can hurt your business and why it is crucial to get on board today.

What Are Internationally Recognised Standards?

Internationally recognised standards are agreed-upon guidelines and specifications developed by global organizations such as ISO (International Organization for Standardization), IEC (International Electrotechnical Commission), and others. These standards cover a wide range of areas including quality management, environmental responsibility, information security, product safety, and more.

They provide a common language and framework that businesses around the world can follow to ensure consistency and reliability in their products, services, and processes.

The Hidden Costs of Ignoring Standards

Choosing not to implement these standards may seem like a way to save time or money, but the hidden costs often outweigh any short-term gains.

Loss of Customer Trust

Customers expect products and services to meet certain quality and safety benchmarks. When a company ignores standards, it risks delivering inconsistent or unsafe products. This can lead to:

• Negative reviews and loss of repeat business

• Damage to brand reputation

• Legal claims from dissatisfied or harmed customers

  
  

For example, a manufacturer that does not follow ISO 9001 quality management standards may produce faulty products, leading to recalls and customer complaints.

Increased Operational Inefficiencies

Standards help streamline processes and reduce waste. Without them, businesses may face:

• Higher error rates

• Increased rework and scrap

• Poor supplier coordination

  
  

A company that ignores environmental standards like ISO 14001 may waste resources and face higher costs managing pollution or waste disposal.

Difficulty Entering Global Markets

Many countries and industries require compliance with certain standards before allowing products or services to enter their markets. Ignoring these standards can result in:

• Export restrictions

• Delays in customs clearance

• Loss of competitive advantage

  
  

For instance, electronics companies must often meet IEC standards to sell products internationally. Without certification, they may be barred from key markets.

A factory floor showing machinery and quality control processes

Image caption: Eye-level view of a factory floor with machinery and quality control checks

Legal and Regulatory Risks

Many internationally recognised standards form the basis of local laws and regulations. Ignoring these standards can lead to:

• Fines and penalties

• Legal action from regulators or customers

• Forced shutdowns or product recalls

  
  

For example, companies that fail to comply with safety standards in the food industry risk closure by health authorities and lawsuits.

Impact on Employee Morale and Safety

Standards often include guidelines to protect workers and improve workplace conditions. Ignoring them can cause:

• Unsafe working environments

• Higher accident rates

• Low employee morale and retention

  
  

A construction company that does not follow occupational health and safety standards may face frequent injuries and high turnover.

How Implementing Standards Benefits Your Business

Getting on board with internationally recognised standards offers clear advantages:

• Improved product quality and consistency

• Greater customer confidence and loyalty

• Access to new markets and business opportunities

• Reduced costs through efficient processes

• Better risk management and compliance

• Enhanced employee safety and satisfaction

  
  

For example, companies certified to ISO 9001 often report fewer defects and higher customer satisfaction scores.

At CKB Enterprise, we can take you through the Steps to Start Implementing Standards Today. Contact us before it's too late!

1. Identify relevant standards for your industry and business size.

2. Conduct a gap analysis to see where your current practices fall short.

3. Develop a plan to address gaps and train your team.

4. Engage with certification bodies if formal certification is needed.

5. Monitor and improve continuously to maintain compliance and benefit from updates.