Every business has to comply with a wide range of regulations. There are already thousands of statutes to comply with. New ones keep coming every day. For example, in the healthcare profession, there are constantly new healthcare coding audits to comply with and research into! What was consistent with the regulations yesterday can be outdated tomorrow. Statutes expire every day, and new ones take effect. In such a breakneck business environment, firms tend to give up. However, they cannot afford to do so. If they do so, they will miss out on the following;
Reaping Great Rewards That Come With Compliance
Compliance means your business can operate in certain jurisdictions. For example, compliance with GDPR policies regarding customer data can open the European market for the company. Without such compliance, that market is out of bound.
Compliance is now mandatory. Compliance with basic customer safety in online engagements is no longer an option. The same case applies to bank information and data. Compliance with health safety and inspection codes is mandatory. Any attempt to circumvent such statutory obligations carries hefty fines and penalties.
Nowadays, companies cannot afford to do as they wish. A simple sleight of hand can land them in serious trouble. Legal liabilities are taking companies down. An employment code issue can expose a company to serious liability. Companies can prevent risks through compliance. Once the standard procedure for doing something is in place, there is no room for cutting corners. There is no room for messing things up.
Quality of Business Partners
In today’s world, being associated with a company that has tainted reputation can seriously affect your business. Once you set governance, risk management, and compliance policy that holistically defines how you operate, you will attract the right firms and people. The firm will attract the right employees, suppliers, and even customers.
However, having a compliance policy is not easy. There are many challenges that a company faces such as:
Setting It Up
Every company has to grapple with this task. A GRC team can be internal or external. It can also utilize software programs to make it easy. However, making it fully functional requires company resources, time, and expertise that most firms struggle to assemble.
As noted, compliance is a multifaceted process that continually changes. It requires flexibility and quick decision-making. Any delays in implementation can be costly. Any gaps between staffing needs and actual expectations can also pose a serious threat to the overall process.
Language of Instruction
Most compliance efforts are littered in legal and technical jargon. The average company staff will require several training seminars before he or she can know what is expected. In a rapidly changing landscape, that is not possible. Organizations that simplify their GRC efforts don’t put their staff in such a situation.
What Can Companies Do?
Finally, communication is also key to the process. Perfect communication channels can reduce information gaps that unscrupulous people exploit.