Staying compliant with the law is very important. Why? It helps you protect your organization’s reputation and saves you a lot of money. Regulatory compliance also serves as a way to build trust with your customers, vendors, and employees. You can say that it’s the foundation that is a big part of your business’ ethical behavior.
If you still have gaps in your security and regulatory landscape, now’s the time to think twice about it. Keep on reading to find out more about the tips and tricks regarding regulatory compliance.
1. Start with the basics
To stay compliant, you need to know everything about it. Regulatory compliance means that a company is aware of the regulations relevant to its business. These laws can be set at the local, federal or international level. If your enterprise isn’t aligned or “compliant” with these rules, you might be playing with fire.
Data losses or lost customers, for example, are one of the main consequences of non-compliance. While regulatory compliance differs from corporate compliance, which sets the boundaries regarding internal policies, both types are vital for an organization because they help you drive your company and its strategic direction, determining clear goals on an ethical level.
2. Stay compliant to produce a positive reputation
While some greet the term “regulatory compliance” by rolling their eyes, it shouldn’t be a struggle to achieve. The rules and details behind compulsory compliance actually offer many benefits; therefore, it’s essential to keep up with the vital information and come to peace with the fact that it’s a serious matter.
A very important factor in business is reputation, that’s why a decent compliant program is the key to the public’s appreciation. It can be used as evidence to prove that being transparent and honest against the law is a part of a company’s identity. Such an a
3. Be aware of the non-compliance risks
Staying non-compliant comes with many risks. Of course, many fear losing funds due to monetary fines but the competitive disadvantages also appear because of personal risks.
Some organizations are in need of more highly-priced risk and compliance skills or are forced to make changes in senior management in order to stay compliant. Despite that, experts argue that the aftermath of breaking the law is more costly and damaging to the business.
4. Understand the level of importance
If you’re aware of the risks and the term itself, chances are that you and your business will be more successful, and staying compliant won’t cause any headaches. By following the laws and regulations, companies prove their integrity and reliability, which makes such organizations outgrow the competition.
Specific requirements differ and depend on the country and the industry the business operates in. Despite that, compliance is mandatory in every sector, that’s why the main rules are valid in a similar manner. For example, financial services, healthcare or industries that cover data protection and cybersecurity are critically entitled to stay legally compliant.
5. Hire a professional to avoid fines
While you might prioritize spending your budget elsewhere, hiring a professional compliance officer is the optimal way to go. On average, a professional earns $61,526 a year. Naturally, the salary depends on the cost of living in your city and the compliance officer’s experience. In the meantime, a recent report shows that the average fine value for Anti-Money Laundering (AML) compliance breaches last year was $34.4 million.
Also, in case you decide to hire a human resources firm, then that means you’re outsourcing your compliance needs to another organization. Such business relationships have perks. For instance, being connected to HR organizations leads you to new resources, such as newsletters, publications, webinars, and other convenient updates.
6. Increase profitability with compliance
The culture of compliance can increase your profits. Smart regulatory actions and a savvy compliance strategy impact businesses’ reputations as well as growth. Audit reports proving compliance allow organizations to market themselves better. This leads to trusted, long-term business relationships and higher profitability rates.
7. Train your staff
Documenting policies and procedures isn’t easy if you aren’t ready for it. All of your employees need to refresh their knowledge regarding compliance to be up to date. You can remove the barriers to compliance and stay current with the ever-changing laws by organizing effective training programs.
Yes, compliance training is a thing. This process ensures that all of the staff members understand the regulations, internal policies, and the function of the company. Effective training usually consists of studies of real-life examples.
This way, the employees can understand better what the issues are and how to handle them at work according to the law. Also, once everyone knows their position and their responsibilities, the team can work at peace. Usually, this improves their ethical values and pushes people to work more productively.
8. Automate your processes to improve efficiency
Meeting with legal compliance consultants regularly requires time and resources but there are other alternatives. If you want to stay informed and review new policies, you can find various information online by signing up for updates on any law-creating entities or enforcement websites. This way, you’ll ensure that the information for your business is provided directly from the source.
Also, let’s not forget technology and its never-ending abilities. Automated software powered by artificial intelligence and machine learning is one of the easiest ways to control almost every process. Monitoring, updating, reviewing, or controlling your business’ processes is limited when it’s done manually. To simplify the administration process, experts advise businesses to implement automated solutions for a more active approach regarding compliance.
9. Prevent cyber attacks and protect your business
Many businesses operate online. During the pandemic, the rise of cybercrime reached a whole new level due to the growing number of e-commerce firms, neo banks, crypto trading platforms or other fintech players, leaving a wider platform for bad actors.
It’s no secret that such criminals use money laundering as a way to conceal their crimes. That’s why AML regulations were invented – as a tool to prevent criminals from stealing funds and trying to obtain money as a legitimate source of income. AML laws require every business to monitor their customers and their transactions by keeping an eye on suspicious activity. This way, staying compliant equals being reputable and protected from fraud.
10. Use identity verification
We’ve already established that online criminals launder the market through various illegal acts such as corruption of public funds or tax evasion. Also, it’s important to stress that such people use fake identities to obtain illicit funds and avoid getting caught.
That’s why, nowadays, you can prevent money laundering as well as criminals from registering to your platform with one security measure. A common way to achieve this goal, stay compliant and follow AML laws is to adopt digital identity verification. The process is simple, efficient, and secure. Such a special automated document reading software can recognize suspicious behavior, identifying cybercriminals hiding under fake identities.
Staying compliant is one of the main priorities for innovative, growing businesses that care about security. Understanding regulatory requirements helps businesses to prove that the company is protected from cybercrime. On top of that, compliance gives customers the needed confidence and assurance that their data is secure.