Dr Venu Murthy is a Technocrat with 20+ years of experience in driving digital transformations of fast growing companies and an innovator.
As a technologist, I was blind to a crucial aspect of any successful business—regulatory compliance. Taking a step back and learning more about its importance has taught me a lot about business health and longevity. Here are my findings.
Regulatory compliance is one of the least understood facets of the business landscape. Regulatory compliance, a process businesses use to check how they align with industry regulations and guidelines, can help a company stay on the right side of the law and avoid legal hassles and monetary penalties. In simpler words, regulatory compliance keeps your business out of trouble.
Let’s examine how companies can stay ahead in the coming years.
Business trends have become more volatile as time passes, and when this happens, regulations can rapidly change. Proper compliance can help your company contend with these shifts to upcoming regulations.
When evaluating compliance, expect necessary changes for your company. Ensure that updates to these changes are implemented in real time by staying on top of regulatory shifts. Keeping your company ahead of the curve will help with minimal operational downtime. Regulatory compliance brings a culture of adaptability to your company, which can help overall business flexibility.
A huge part of compliance failures is due to human error. With hundreds of thousands of data points today, there are bound to be compliance issues. Automating these compliance routines could be a huge step toward eliminating these errors. The key here is to ensure that regulatory compliance automation is part of the daily process. Introducing AI-assisted compliance checks can also detect errors and correct them without human intervention. However, if you use automation in your business, it becomes crucial to keep it updated through training on new data, thus reducing the chances of further errors.
An integral part of regulation compliance is the digitization of documentation in the office. Current regulation dictates that all documentation should be available digitally and in the cloud. This would also push for the adoption of digital signatures for all these documents.
Digital signatures are more convenient and safer for document verification—they have far fewer chances of being duplicated than traditional signatures. There are other benefits: Reducing the consumption of paper and other materials will improve the eco-friendliness of modern businesses. Increasing sustainability and achieving a business’s green initiatives and targets should always be a goal!
Traditional methods made it challenging for larger companies to keep track of their compliance. Even different departments in the same office could have issues aligning their regulations. These sorts of difficulties have been all but eliminated with the introduction of collaborative platforms for regulatory compliance.
Today’s regulatory compliance platforms are based in the cloud, making coordination between different teams easier and more productive. With current technology, it is possible to have real-time updates to different types of documentation, which means a much lower turnaround for regulatory changes across an enterprise.
Finance, Security And Employee Education
One of the biggest ways regulatory compliance has changed businesses today is financials. Today, getting a company’s compliance report and running a quick assessment of what is wrong and what needs to be done is easy. Coupled with the automation of compliance processes, businesses have become much quicker at adapting to new regulations. With the assistance of cutting-edge AI, the decision-makers at a business can get recommendations in real time, which helps identify and eliminate redundant and wasteful tasks. Ultimately, adhering to regulations can help optimize workflows and improve efficiency gains.
Another significant benefit of regulatory compliance is data security and encryption. Regulatory compliance ensures that companies need to upgrade all their security protocols to protect their data and also that of clients. It dictates regular cybersecurity assessments carried out within the company to ensure everything is above board.
Regulatory compliance also requires that employees be educated on several aspects of data security. Encouraging companies to take effective action at all levels helps prevent data leaks and misuse. Proper data security measures will also attract more clients to your business and improve your ROI.
Regulatory compliance improves business performance across the board, allowing you to compete against well-entrenched businesses. Businesses that showcase their commitment to regulations through their marketing will only make their position in the market more prominent. Clients will be much more keen to engage with companies that have passed regulatory compliance and maintain its importance throughout their business.
Keep up with compliance and cement your reputation as a business that cares about doing what’s right for your employees and the world.