Compliance Guidelines are a Two-Way Street

Written by on October 2, 2012 in Career - No comments | Print this page

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Compliance regulations are often considered an unnecessary hassle by businesses in terms of administration time, high costs and the tediousness of such tasks; however, compliance guidelines are far more important than for just avoiding small penalties and fines for a company. Regulations range from security control of customers’ data to enterprise information archiving to ensure particular documents are stored for a required amount of time. Complying with these guidelines can affect the company in multiple ways ranging from improving the quality of business practices to enhanced security and communication.

Companies who do not meet compliance guidelines are breaking the law. Should a case be taken to court and a business found not complying, the company is placed at risk of massive financial damage. Furthermore, the business’s reputation is also harmed in regards to both the market place and customers. On the flip side, companies who do comply with procedures gain a competitive edge in the market. This can easily be achieved by developing clear guidelines and encouraging staff to report any negligence in business practices or compliance breaches.

Following compliance regulations can also help to improve internal communications; this is one of the most efficient methods to ensure multiple departments develop strong interaction, and disagreements are resolved more easily. For example, issues such as incident reporting require input from a number of business units. The impact on administration and other operations can be widespread throughout the company as the improved communication not only benefits compliance issues but also other business strategies.

In recent years, the emphasis on security control has heightened as consumers’ concerns for privacy of their personal information has increased. Even if legal compliance regulations were not in place, consumers would demand secure practices such as adequate management of their data and protection of confidential information. Most clients are already seeking the services of companies with a reputation for better security practices.

In the case of an outside security breach, companies that can exemplify their compliance have a more tenable legal position. For example, businesses may be able to justify their efforts to protect confidential data by demonstrating an enterprise information archiving system.

While complying with regulations may initially seem very expensive and costs may appear to outweigh the benefits in the short term, the potentially devastating effects on the company in the long term makes compliance adherence essential for any successful business. Abiding to compliance regulations can save an ample amount of time, money and distress in the future.

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This is a guest post.  Mercedes Potter is a part of an elite team of writers who have contributed to hundreds of blogs and news sites. Follow her @CedesPotter to see what else she’s been blogging about.

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