Changing compliance requirements are enough to make your head spin. If it’s not a new law, it’s a complicated update to an existing industry standard. You only have so much time to get with the program. And training your staff while making sure everyone’s doing what they’re supposed to can be a huge chore.
But no matter how convoluted compliance gets, it’s not optional. Failure to stay on top of industry requirements and regulations means consequences. And most of those repercussions don’t come cheap, whether they’re in the form of hefty fines or operational overhauls. If keeping pace with the latest changes threatens to overwhelm, here’s how to get a handle on an increasingly complex compliance landscape.
Use More Powerful Software
Does your business try to track every compliance requirement with spreadsheets? You could be making your job harder by using what seems like a simple solution. Undoubtedly, spreadsheet software is a tool you currently have. You don’t usually have to retrain employees on it, plus it is probably part of a package you’re already paying for.
But the downside of going this route could cost you. Spreadsheets require a ton of manual intervention and can reinforce data silos. If someone forgets to enter an update and share the information, your business could easily fall out of compliance. In addition, spreadsheet software can’t scan and analyze internal processes, which could open the company to increased risk.
A fine-tuned governance, risk, and compliance program uses more sophisticated software. Also known as GRC, this approach integrates the capabilities of a GRC tool with human oversight. The software can flag new requirements and risky business practices. Yet it’s up to your compliance team to instigate and oversee appropriate fixes. GRC tools integrate governance, risk, and compliance while improving transparency.
Assess Current Processes
One of the U.S. Department of Justice’s expectations regarding compliance programs is routine testing. In the DOJ’s eyes, an effective program includes measuring and testing company culture. More importantly, companies must use the data from these assessments to make continuous improvements. Compliance isn’t a one-and-done activity.
Besides evolving regulations, you may discover insufficient and out-of-date processes. Take cybersecurity measures as an example. If no one’s updating your organization’s essential software, you’re jeopardizing data security. There might also be stricter measures you can and should take, given new developments with preventative tools and industry standards.
Routine assessments of compliance programs and company cultures could uncover less visible issues. Say only a few department managers let their direct reports work from home. These staff members handle sensitive data, but the business lacks an overarching remote work policy. As a result, there’s no control over how these workers access and store proprietary information. Discovering gaps like these can lead to improvements in policies and practices impacting compliance.
Transfer Risk
It’s OK to admit your business may need some help with compliance. Some companies don’t have the resources to manage everything alone. A small HR budget and lack of expertise might mean your compliance program is barely cutting it. Partnering with skilled service providers instead can give you an edge.
For example, managed security service providers could help you transfer network security risks. These providers have the resources and capabilities a complex operating environment requires. They can monitor your network, supply the infrastructure, and manage regulatory changes. Service providers can become an asset for businesses without the budgets to hire enough staff and purchase the right technology.
However, your company is still ultimately responsible for following rules and standards. Transferring risk doesn’t include washing your hands of it. You must still vet your vendors, keep the lines of communication open, and treat the arrangements as a partnership. Ask for regular updates as well as recommendations. Be as hands-on as possible while letting managed service providers do what they do best.
Hire Compliance Officers
Bringing a compliance officer on board shows your company is serious about industry requirements and regulations. Doing so commits resources toward staying on top of all compliance-related actions. The scope of these activities can include everything from licensure to enforcement. You don’t have to hire an internal officer, either. Your company could outsource the role to help manage complicated conditions.
Having a compliance point person prevents employees from passing the buck. When no one in particular is in charge of compliance, it’s easier to shirk responsibility. Staff members may get the impression that knowing and following the rules isn’t their job. Instead, they’re waiting for direction or just doing what they know.
Unfortunately, an unorganized approach can lead to unethical and noncompliant behaviors. Employees may not intend to violate standards but don’t realize there are more appropriate ways to perform their tasks. Compliance officers provide a streamlined layer of oversight and can ensure everyone is toeing the line. They can also fully dedicate their time to researching and analyzing compliance-related issues that impact the company.
Staying on the Straight and Narrow
When laws and industry standards are in constant flux, meeting all the requirements can seem like an impossible challenge. But dropping the ball can lead to expensive ramifications, including a loss of consumer trust. The negative effects of these outcomes might be difficult to overcome, perhaps lasting well beyond the immediate impacts.
Although adhering to rules and legal requirements is becoming more of a complex challenge, there are effective ways to manage compliance. Some of those include investing in high-tech tools and compliance experts. By taking these actions, your company can stay ahead of the curve.