5 Reasons Why Compliance Is Essential for Your Business

Oftentimes when business owners hear the word compliance, they have a negative reaction. They think “this is hard” or “this is unnecessary” when in fact the exact opposite is true. When businesses leverage compliance, they see an increase in overall uptime and protect your reputation. 

Here are 5 reasons why compliance is essential for your business:

#1: Your business enhances consistency and reduces unforced errors

Processes are essential to a well-run organization. These processes breed consistency throughout all departments. Without a process, errors are subject to occur. Compliance regulations are there to oversee that there are processes in place so that mistakes do not happen, especially when it comes to client and patient sensitive information.

#2: It’s part of your organization’s duty to the community and stakeholders

When organizations collect sensitive data from its customers or vendors, they have a responsibility to keep that information secure. Unfortunately, we’ve seen stories all over the news about trusted companies getting hacked and client information being exposed. It makes the consumer more cautious about doing business with them in the future. Without compliance, you can’t reliably build trust or maintain trust with others.

#3: Compliance defines the “why” your business exists and the “how” you fulfill the “why”

Every business has a purpose and compliance is a critical tool in fulfilling that purpose. If you’re in the medical industry, then your practice must meet HIPAA regulations which puts the focus back on the patients and protecting their sensitive health information. Many industries have these compliance regulations to guide them back to their “why” like FINRA which safeguards the market’s integrity and CMMC by the Department of Defense.

#4: Compliance serves as a driver of change and innovation

Without compliance, many businesses would still be living in the stone ages. These regulations help businesses keep up with the times and improve their processes. It focuses on risk management as well as digital transformation. This alone can improve employee productivity and provide customers with more conveniences. 

#5: The world is requiring it

From government entities to cyber liability insurance carriers, organizations are requiring businesses of all types to meet certain security requirements. In fact, cyber liability insurance providers may even deny your security incident claim if you can’t prove the attempts made to protect your organization and its data. 

Since third-party vendors proved to be a big factor in 2022 for cyber attacks, companies have started requiring those vendors to have advanced protections in place before they’ll even think of doing business with them.

Book a Time to Discuss Compliance

If you’re concerned about meeting compliance requirements, please book a time with Phillip on his calendar below.