Businesses are constantly faced with compliance challenges and changing regulations. IT compliance simply means that a business must commit to the safety and security of their client's data and information.
As a business leader or owner, it’s hard enough to keep up with day-to-day tasks, let alone ensure that you are remaining compliant at all times.
Do you have an IT team that has your back when it comes to compliance?
If not, maybe it’s time to take another look at your regulatory compliance process. In the meantime, here are 6 reasons why compliance matters:
1. Insurance Requirement
Insurance companies are beginning to require that entities they cover adhere to compliance standards. It’s important to remember that compliance has a hierarchical effect meaning anyone a company chooses to do business with must also meet compliance standards. For example, a medical practice (which must be HIPAA compliant) hires a payroll company to process its payroll. The medical group’s insurance provider might require that its payroll company also be in compliance. The payroll company doesn’t collect any sensitive medical information, but because it is a vendor of the medical practice, it too must meet compliance standards else the insurance company will not cover the medical practice.
2. Peace of Mind
Remaining compliant will give your business leaders, employees and clients a strong peace of mind. The number one concern with compliance is getting into legal trouble. A trained IT team will stay ahead of regulations and trends and keep your company’s best interest in mind, so you can rest assured that you’re in line with the latest compliance regulations.
3. Reputation Management
“It takes twenty years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett
Here’s a truth bomb: Being a reputable company is one of the top ways to promote your business.
Staying compliant protects your businesses’ reputation. If your business gets into trouble due to failure to remain compliant then your clients and prospects will doubt your ability to serve them well and protect their information moving forward.
4. Avoid Costly Fines
Companies who find themselves in hot water because of compliance missteps not only face the risk of a public relations nightmare but also the probability of having to pay exorbitant fines imposed by their governing body. On top of that, attorney’s fees and court costs could cripple your business should a client or vendor sue for damages caused by your non-compliance.
5. Enhance Productivity
Internal compliance within the walls of your workplace creates strong business standards, promotes a healthy work culture and enhances overall productivity. If employees feel safe and secure, they will therefore be more likely to be productive in their work. Also, if your business isn’t running into audits or issues with regulations, you can focus on what you’re good at.
6. Save Money
In conclusion, compliance matters because it saves your business time, and therefore money. In a 2020 survey conducted by Globalscape and the Ponemon Institute, implementing regulatory monitoring to ensure they were keeping up with regulatory changes saved businesses $1.03 million on average. Investing in technology and an IT team that has experience with maintaining compliance will save you money in the long run.
If you’re interested in learning more about how we approach compliance holistically at MIS, click here. Have more questions about compliance? We would love to get in touch! Reach out to us here, and a member of our incredible technology team will contact you.