Definition
A failure to comply with a legislative obligation that may be established in Organisational’s Rules, Policies, Procedures or Guidelines.
Examples
a) Leak company’s confidential information for personal benefits.
b) Breach the Code of Conduct of the company.
Effects
a) Legal costs of policy negligence:
By clearly outlining expectations and practices, well-maintained policies can prevent incidents that could result in lawsuits. If a lawsuit does arise, courts will often look at company policies to see if the organization is at fault.
b) Security Costs of Policy Negligence:
As technology advances, storing important documents on a shared drive or free cloud storage solution has become increasingly risky. Policy negligence can leave your organization open to hacking.
c) Policy Negligence Hurts your Operational Excellence:
When you neglect your policies, processes get tangled, employees don’t get the information they need, and operational excellence is compromised.