Compliance plays a pivotal role in safeguarding both the data and the interests of a company.
While many organizations recognize its importance, several still fall victim to common compliance mistakes that can result in hefty penalties, damaged reputation, and legal repercussions.
In this blog, we will explore the most prevalent errors committed by companies and offer two practical solutions to avoid these pitfalls.
What compliance mistakes do companies make?
Compliance is a multifaceted process that requires ongoing efforts rather than a one-time endeavour. This complexity often leads to some companies making mistakes along the way. Here are some common compliance errors that organizations make.
1. Inadequate record-keeping
Many companies struggle with maintaining proper records of their compliance-related activities. This lack of organized documentation makes it difficult for them to demonstrate adherence to regulations during audits. Moreover, poor record-keeping increases the likelihood of missing critical compliance deadlines, leading to potential penalties and legal consequences.
2. Ignoring industry-specific regulations
Each industry has its own unique set of regulations that companies must comply with. Failure to stay informed and adhere to these industry-specific rules can result in non-compliance issues. Ignoring industry-specific regulations not only exposes the company to legal risks but also damages its reputation and trustworthiness in the market.
3. Lack of compliance training
Companies often underestimate the importance of educating their employees about compliance requirements. Without proper training, employees may unknowingly engage in actions that violate regulations. Regular and comprehensive compliance training is crucial to ensuring that employees understand the rules and regulations that apply to their roles.
4. Failure to monitor third-party compliance
Businesses often outsource certain functions to third-party vendors and partners. However, they must ensure that these external entities also comply with relevant regulations. Neglecting to monitor third-party compliance can expose the company to significant risks and liabilities, as the actions of external entities can directly impact the company’s compliance status.
5. Opting for a reactive approach
Adopting a reactive approach to compliance is a common mistake. Waiting for compliance violations to occur before taking action can lead to severe consequences. Companies should take a proactive stance by identifying potential risks and implementing measures to prevent non-compliance before it becomes a problem.
6. Ineffective Communication
Communication breakdowns between compliance officers and other departments can lead to misunderstandings and non-compliance. Proper communication channels must be established and maintained to ensure that all relevant stakeholders are well-informed about compliance requirements and changes in regulations.
How to Get Compliance Right
Complying with one, let alone multiple frameworks, might seem daunting. However, compliance experts recommend two approaches that will not only help your company avoid common compliance errors but excel in meeting regulatory requirements. Here’s what they recommend:
Outsourcing Compliance Activities to a Managed Service Provider (MSP)
Outsourcing compliance activities to a trusted MSP can bring valuable expertise and efficiency to your compliance efforts. MSPs specialize in assisting with documentation, compliance audits, risk assessments, and risk monitoring.
Good MSPs employ a proactive approach to compliance, identifying potential risks and areas of improvement before they escalate into compliance issues. This preemptive strategy not only ensures a higher level of compliance but also fosters a culture of continuous improvement within the organization.
Moreover, outsourcing compliance activities to an MSP can lead to better resource allocation. Instead of dedicating internal resources to non-core compliance tasks, companies can allocate those resources to strategic initiatives and revenue-generating activities, ultimately driving business growth and innovation.
Furthermore, MSPs’ scalable solutions cater to the specific needs of each company, regardless of their size or industry. Whether a small startup or a large enterprise, partnering with a trusted MSP allows companies to access tailored compliance services that adapt to their evolving needs and compliance requirements.
Automating Compliance with GRC Automation
By implementing GRC automation tools, businesses can streamline and centralize their compliance processes, minimizing the risk of errors and oversight.
These tools provide a structured framework to manage multiple compliance frameworks efficiently and eliminate duplication of efforts. They ensure that all relevant requirements are addressed and met consistently.
They also generate automated reports, providing real-time visibility into compliance status, potential risks, and areas that need attention.
How TenisiTech – a trusted global MSP – can help prevent compliance mistakes
TenisiTech, a trusted Managed Service Provider (MSP), offers tailored Compliance-as-a-Service solutions to help organizations avoid compliance mistakes. TenisiTech’s team of compliance experts can assist your company in developing a comprehensive approach to compliance management, ensuring smooth navigation through the complex regulatory landscape.
In partnership with Scrut, TenisiTech extends its value to companies by granting access to a pool of compliance specialists who deeply comprehend the unique requirements, goals, and risk tolerance of each business. By collaborating closely with clients, TenisiTech and Scrut create compliance strategies that seamlessly align with the organization’s operations and objectives.
TenisiTech offers a wide array of assistance to compliance efforts, encompassing risk analysis, policy development and implementation, documentation management, third-party risk management, security training, and incident management.
By choosing to outsource compliance processes to TenisiTech, your organization can avoid compliance mistakes and enhance overall operational efficiency and business performance.