Regulatory compliance is when a company follows state, federal, and international laws about their operations. This could include laws and regulations governing business ethics, financial practices, data security, and more. Different industries face varying levels of regulatory compliance, with more highly regulated sectors like healthcare and finance facing strict legislation. Companies have to follow these standards to give consumers a sense of confidence when doing business with them.
Despite the complexities involved, achieving regulatory compliance has several benefits for businesses. It helps them protect data and information from threat actors while demonstrating accountability to their stakeholders. It also helps them avoid costly fines for noncompliance with government and industry standards.
The Cost of Noncompliance
It’s no secret that the costs of not following regulatory compliance can be astronomical. In the last few years alone, we’ve seen major corporations pay millions of dollars in fines for not protecting consumer information and adhering to industry standards. These fines aren’t just reserved for the big players, either; smaller companies are also susceptible to large fines if they don’t maintain compliance.
In addition to avoiding costly fines, maintaining regulatory compliance can help businesses stay competitive and remain reputable in their industry. Many consumers trust companies that follow these standards, and they’re less likely to do business with a company that doesn’t.
For example, we’ve seen healthcare organizations face fines and other penalties for not keeping up with their regulatory compliance standards. These standards are meant to ensure that patients’ medical records are secure and private, while giving healthcare professionals the ability to provide quality care to their clients. In order to remain compliant, these organizations must update their technology and ensure that all employees are trained on the latest policies and procedures.
Prioritizing Regulatory Compliance
While regulatory compliance may seem intimidating, it’s important to prioritize it over other initiatives that might be more tangential to your business. After all, noncompliance can cause your organization to suffer from a loss in revenue and even bankruptcy if the situation is severe enough. This is why it’s so important to have an experienced team on your side who can assist you in meeting regulatory compliance standards.
Whether you need help updating your information technology systems to meet current compliance standards or are looking for a partner to audit your existing environment to identify areas of risk, we’re here to help. Our dedicated team of experts can take the burden off your shoulders and free up your time so that you can focus on growing your business. Reach out to us today to get started. We’ll create a strategy that meets your specific needs. We look forward to working with you.