What do penalties for non-compliance typically include?

Penalties for non-compliance primarily encompass measures that seek to enforce adherence to regulations and laws. This includes fines, which serve as financial penalties for failing to comply with established standards; sanctions, which can impose restrictions or additional requirements on the entity; litigation costs, which arise from lawsuits or legal actions taken due to non-compliance; and even potential imprisonment for individuals responsible for severe breaches of compliance. Such penalties are designed to deter organizations from non-compliance and to protect the integrity of the regulatory environment.

The other options do not align with the nature of penalties for non-compliance. Increased employee bonuses and rewards, for example, would be counterproductive in a compliance context, while a decrease in customer inquiries and non-regulatory feedback do not directly address the consequences of failing to follow regulations. They do not represent punitive or corrective measures tied to compliance failures.