Regulatory compliance defines the scope of operation and set of procedures for businesses to follow based on industry standards. Discover the importance of regulatory compliance and how Isecurdata can help you meet compliance requirements with cyber resilience in view.
No business in operation has it all figured out when it comes to measuring up to standards or making sure that the data processed and used by the business is stored according to regulatory requirements.
Regulatory compliance defines the scope of operation and set of guidelines required by the law (local, state or international) for organisations to follow. It could also mean standards set by the government to regulate how specific industries operate and are regulated by industry regulatory body aka Regulators.
Regulators are agencies that create guidelines and frameworks to help organisations successfully meet compliance requirements of regulations for their industries. An example is the HHS offering the HIPPA guidance materials that outline the HIPAA regulations and the suggested safeguards that help entities implement HIPAA.
Regulatory requirements differ by industry. For instance, standard requirements for the food industry may focus on the entire supply chain to ensure product safety while the requirements for the healthcare services industry may focus on how to handle protected data and cybersecurity.
Few Regulatory Compliance Regulations
Why is Regulatory Compliance a Big Deal?
Achieving regulatory compliance instils in a business the confidence to indicate that it has met specific standards and is certified by an industry-accepted regulatory body. This can also prove the organisation’s integrity, reliability and ethics which can, in turn, strengthen its competitive posture and enhance stakeholder trust.
The Importance of Regulatory Compliance
The risks facing your business could be mitigated through the prevention of possible events detrimentally affecting your operations when you comply with regulations. Regulatory compliance helps your business to identify hidden risks and mitigate them through the provided policies and procedures.
Efficiency and Productivity
Every business yearns for more efficiency and productivity to stay ahead of their competitors and ensure customer satisfaction. To improve business bottom-line and cost reduction, increased efficiencies is the best solution, therefore, implementing a comprehensive policy and compliance management program can help increase efficiencies.
Furthermore, a compliance process starts with business analysis which entails understanding the current state of the business to aid the creation of policies and procedures that facilitates regulatory compliance. This analysis can be of help in identifying inefficiencies that are roasting business productivity.
Business Trust and Reputation
Trust both from stakeholders and end-users is the epicentre of any business thriving. Reputation is what maintains the image of a business and help maintain business stability in its market share. When these two business qualities become taunted, the business will lose its relevance.
Compliance indicates that your business has met certain criteria to achieve a specific standard, hence, achieving compliance enhances stakeholders and customers trust in your business.
Finbold’s Bank Fine 2020 Report revealed that in 2020 alone, some U.S. Banks paid major fines amounting to $11.39 billion, U.S. Banks such as Goldman Sachs, Wells Fargo, and JP Morgan Chase paid upwards of $7.50 billion of this total. Compliance with regulations and standards helps your business to avoid financial penalties which in turn gives your business financial safety.
Isecurdata is specialised in IT managed services and optimal cybersecurity solutions. With over thirty years of IT Security experience, we can help your business to comply with industry regulations and standards with cyber resilience in view.