Data is the most valuable asset for any business to rise to the top of its industry. Data can unlock new possibilities and business processes, but if disorganized or outdated, it can be a company's undoing. In general, regulations exist to enhance consumer confidence in data processing. They are set in place to protect businesses and customers from dangers, and compliance ensures they stay on the right track. This checks-and-balances system allows business leaders to innovate and helps the company remain sustainable in an ever-changing landscape.
So, why are so many organizations not yet compliant in their industries?
Typically, organizations view compliance as the innovation killer—a time-consuming, complex, and costly obligation with little upside. However, in this digital age, compliance needs to be built into everything your business does to react quickly to changes in technology, laws, or customer expectations. For example, Bandwidth, a leader in voice and messaging platforms, has been helping large enterprises comply with a new communications law. The new law, RAY BAUM's Act, requires large or complex sites—multi-story buildings, schools, college campuses, or senior living facilities—to provide precise dispatchable location information to first responders when a 911 call is made. This is so a person can be found inside the building if they have an emergency and are incapacitated.
While the intention behind the new law is admirable, research shows that nearly half of the impacted organizations are still not compliant, giving way to serious legal and safety risks. Some organizations may not be aware, some may not know how to upgrade their communications systems, and others may feel the liability is low. But we have seen a couple of cases where failure to comply has led to eight-figure settlements.
Why Compliance Matters
Companies can face seemingly endless problems if compliance is not properly adhered to. It’s one of the essential parts of a business, yet many are still making errors for fear of losing their freedom to innovate and conduct business.
Bringing about innovation through compliance comes with knowing how to ride the razor’s edge without getting cut. Just because you’re adhering to regulations doesn’t mean you can’t innovate and explore ways to enhance your business. Many enterprise tech innovations do not solve for compliance directly but indirectly result from new regulations. Oftentimes these represent advancements that may never have occurred without compliance as a motivator in the first place. Asaf Darash, founder and CEO of Regpack, a payments software company, regards regulatory compliance as an impetus for optimizing payments systems if used correctly. He sees it like this:
Suppose a policymaker changes the requirements for payments systems to add dates. Instead of just checking the box to fulfill the specification, the system could automatically create a calendar while you add dates for clients to see. Not only would you be compliant, but your product would also have increased value by turning that update into something marketable for your clients and prospects. “This logic could be applied in innumerable ways, where compliance becomes a gateway to elevating systems and increasing competitive advantage,” Asaf said. You’re not just crossing an item off your to-do list but positively impacting your brand’s perception.
Change isn’t limited to large technological advancements or futuristic new methods. Sometimes changing habits necessitate the need for new processes, while other times, it’s changing regulations. FinTechs and banks, like Dwolla, a fintech company that offers account-to-account payment solutions, are collaborating to give their customers unprecedented flexibility, control, and speed and prevent new security gaps. Their API integration provides faster, more secure payments that are completely up to date on compliance while their clients remain free to innovate.
As a business, staying compliant can become more challenging as additional regulatory burdens continue springing up. Compliance teams must ensure their organizations comply with external and internal policies or regulations for future success. Because of the risks involved, healthcare organizations are highly regulated, and the penalties for non-compliance are significant. Regulatory bodies such as the CDC, OSHA, HIPPA, and others are constantly updating guidelines and regulations for healthcare providers. MedTrainer, a technology pioneer in healthcare compliance, offers healthcare professionals a cloud-based solution to navigate this constantly shifting, complex world of healthcare certification and governance.
Compliance is an area that every company needs to face, but not enough are ensuring that they are fully compliant with all issues. We know that leadership models must adapt to this uncertain world, and the early adopters of compliance end up with a competitive advantage.
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