Why Your Company Should Invest in - Compliance Software for 2020 - White Paper - Gensuite
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White Paper
Annual
Study
Why Your Company Should Invest in
Compliance Software for 2020
TABLE OF CONTENTS Intro Why Legal and Regulatory Compliance Exist Compliance Challenges: 3 Types and Trends 6 Ways Compliance Software Helps Your Business Key Benefits of Compliance Investment Gensuite Compliance Software Why Compliance Training Makes for a Good Investment Takeaway
Introduction Most companies gravitate toward the areas in which they thrive, and for good reason. Why wouldn’t you want to showcase your company’s talents? However, oftentimes that means losing sight of the areas many consider overwhelming. For most, that area is compliance. Compliance affirms that a company or corporation acts responsibly within its industry and community. Laws and regulations determine how they conduct their business, how they manage their staff, and how they treat their customers. Compliance, needless to say, is essential in ensuring the safety, security, and sustainability of a company. Complying with rules and regulations puts a company in an advantageous position. It builds up a company’s image, and we all know business success depends highly on public perception and reputation. So, why should your company invest in compliance software for 2020 (and beyond)? When a company fails to meet compliance, it loses the trust and confidence of the general public in their products and services. This also means costly audits, fines, or even criminal charges. When a company maintains compliance, it upholds a positive image and develops consumer trust. Additionally, job applicants find appeal in companies that run their business honestly and safely. Employees are more fervent to work when they feel well compensated for their efforts and when they are safe within the business’ reach. Adhering to internal compliance ensures that employees are satisfied, and that all complaints or issues are monitored and addressed properly before they grow and affect the entire corporation. Data and cybersecurity compliance will continue to be a major trending topic for 2020 and beyond. Several industry sectors, such as finance, healthcare, defense, and consumer products, will be heavily affected by data and cybersecurity compliance. In 2018, General Data Protection Regulation (GDPR) went into effect to protect how companies handle consumer and personal data for organizations that operate and/or have customers in the European Union (EU). This trend will only continue to expand and apply to other countries, now including the United States with the California Consumer Privacy Act that went into effect on January 1, 2020. The CCPA policy is the first modern consumer data protection state law in the United States. Countless and ever-evolving regulations keep a business within reasonable boundaries. With functional compliance management software from Gensuite, a company can stay on the right side of the law.
Why Legal and Regulatory Compliance Exist “Good compliance manifestly is good business.” – Robert Biskup, Corporate Compliance Insights Businesses are often challenged by effectively making the business case for — and explaining how – an integrated approach to governance, risk, and compliance translates into bottom-line financial benefits for the company. The main part of the challenge lies in how professionals are trained to think about the regulatory drivers of compliance, rather than the equally compelling operational opportunities. Also, how it translates into making the critical points resonate convincingly with management. Simply put, while there are no specific regulatory compliance rules for all companies, a business must undertake certain measures because regulations say so. Naturally, if rules aren’t followed, there will be big fines or penalties to pay, as well as possible reputational harm. Although the legal drivers certainly are critical, these shouldn’t be the only emphasis points when communicating the operational advantages of governance, risk, and compliance integration to senior executives and employees alike. There are many reasons why compliance exists, and why it’s important. When a business keeps up with legal and regulatory compliance, it builds a critical connection between strong compliance processes and tangible results in areas as wide-ranging as revenue enhancement, reputation and brand protection, customer attraction and retention, higher profitability / lower costs, improved workforce performance, assets protection, and so on. In other words, many of the key attributes of an effectively run business. The ultimate benefit, of course, will be fostering a productive, efficient environment in which all elements work together toward a common strategy of detecting and preventing compliance breakdowns. But, there are also potential tangible benefits that directly correlate with other issues of importance to stakeholders.
Compliance Challenges:
3 Types and Trends
Businesses face constant challenges in compliance,
but not all face the same types of challenges within
the same fields. Here’s what you can expect in 2020.
FINANCE + RETAIL
Financial crime compliance has increasingly become a cost
burden for most banks in times of shrinking profits.
Because of this, the focus has shifted for many institutions
on operationalizing compliance to become more efficient
and effective. As technology advances, regulators are
becoming more open to adopting new methods of
managing regulatory requirements through Artificial
Intelligence (AI), machine learning and robotics. These
advanced technologies will automate and streamline the
fraud and financial crime investigation processes and alert
handling – therefore, taking the human error out of more
manual processes and improving efficiency. [1]
HEALTHCARE
It’s not just the finance industry that faces risks from
cybercriminals; healthcare organizations with their massive
databases full of personal information have become
common targets of ransomware and phishing as well.
Compliance specialists and leaders will have their work cut
out for them in the coming year. Moving forward through
2020, healthcare companies should consider investing in
technology that proactively protects patient data to avoid
the risk of a highly publicized data breach. In addition, it is
also important to integrate training into their compliance
framework. The majority of data breaches are caused by
human error – yet user training is commonly overlooked as
a part of an organization’s overall security program.
Compliance specialists can take the lead in advocating for
these recommendations, as they understand well what’s at
stake. [2]
ENVIRONMENTAL
Environmental regulations will continue to capture the
focus of power plants and other facilities by way of the
Clean Air Act. Organizations are urged to take advantage of
factors that could reduce their burdens and improve
pollution monitoring and modeling while benefiting
companies simultaneously. Additionally, the PFAS Action
Act of 2019 was passed to amend several existing statues in
order to require regulation of per-and polyfluoroalkyl
substances, a group of nearly 5,000 chemicals that are
linked to health issues such as cancer, heightened
[1] https://www.fico.com/blogs/financial-crime- cholesterol and thyroid hormone disruption. [3]
compliance-predictions-2020-more-ai-and-robots
[2] https://hipaahealthlaw.foxrothschild.com/2020/01/
articles/articles/foreshadowing-hipaa-trends-for-2020/
[3] https://www.law.com/thelegalintelligencer/2020/01/30/
the-potential-of-the-pfas-action-act-of-2019/?
slreturn=20200105131144
6 Ways 3. INCREASE PRODUCTIVITY
Rules regarding discrimination and
Compliance Helps
harassment help a company create a
better work environment, which leads to
Your Business
better productivity. The more employees
feel they work in a fair, professional, and
safe environment, the more likely they will
Compliance management should be a stay with you. Thus, better retention for the
top priority among conscientious business company. Remember to include policies
owners. When you follow environmental, and procedures in your employee
health, and safety regulations, you reap handbook that mirror legal compliance
several benefits from maintaining obligations.
compliance. Take a look at these six.
4. QUALITY IMPROVEMENTS
1. TRUST AND BRAND LOYALTY Quality encompasses all. From the quality
Establishing a clear, effective and broadly of your company’s EHS aspects, to the
communicated compliance program quality of your products or services.
signals to stakeholders that compliance is Maintaining compliance means preventing
a top priority for your company. It errors at an early stage, which reduces the
demonstrates your commitment to doing need to redo tasks. Quality and compliance
business the right way and to the highest go hand in hand – or rather, product in
ethical standard. It shows your expertise hand. Minimize risks and costly audits
surrounding relevant laws and with Quality Management Software
regulations. Customers, employees, and (QMS). Ensure right from the start of daily
vendors seeing this commitment have a operations your employees and products
higher overall feeling of trust in you. And are in a safe, healthy place.
such trust, studies have shown, breeds
brand loyalty. 5. BOOST DATA, PRIVACY, & SECURITY
Remember the data breach that affected
2. INVESTMENT FOR THE FUTURE Target in 2013? This cost the company
Business managers or owners should see about $39 million in bank lawsuit
safety training and compliance as an settlements and targeted nearly 40
investment more than an additional million customers. Don’t fall victim to
expense. Accomplishing training security issues such as this. Maintaining
promotes the longevity and legitimacy of compliance boosts privacy and data
a business, and prevents distractions security risks. To avoid this, implement
brought about by legal action. When a regular risk assessments to ensure
company undergoes a government audit, appropriate technologies are in place. This
for instance, imminent failure to comply can be accomplished by an employee
with safety standards leaves a company training program on handling sensitive
vulnerable to serious legal consequences and confidential information.
and expensive fines. By complying with
standards and training all your employees 6. CREATE A DIVERSE WORKFORCE
according to industry standards, you give Gender inequality persists today, which is
them all the tools to be responsible for why Norway requires a 40 percent quota
their safety, which takes pressure off for female directors in the boardroom.
management. Quotas are also imposed by Malaysia,
Brazil, Belgium, Iceland, Italy, Spain, and
the Netherlands. To dispel such inequality
and HR compliance trouble, a company
must identify and attract talent from a
diverse candidate pool. It must also build
support for longterm diversity outreach,
recruiting, and retention.
Key Benefits of Compliance Investment Higher quality information that leads to more informed decisions Process optimization: eliminate non-valuable activities and streamline valuable activities to reduce downtime Better capital allocation because areas of redundancy and inefficiency are identified Thus, financial and human capital are better distributed Protected reputation: managed risks enhances company reputation Lower costs contribute to overall ROI gains
Gensuite AUDIT ASSISTANT
Enter, manage and review audit observations
Compliance
across audit teams within a collaborative Audit
Room and export finalized findings into the
Gensuite Action Tracking System for corrective
Software action follow-up.
COMPLIANCE CALENDAR
By now, you’re a compliance expert.
Schedule periodic/recurring tasks and
You’ve discovered why compliance exists,
obligations, assign responsibility with email
what trends to expect in 2020, and even notifications and intelligent escalations, and
how your company can thrive when you
track and report status.
follow necessary rules and regulations.
But how do you intend to do that?
REG TRACKER
Gensuite offers several compliance Monitor and track new and updated
software solutions and applications to
regulations by country/jurisdiction with
lead you into the future.
customizable, subscription-based user
notification emails and dashboards.
AUDIT AND COMPLIANCE SOFTWARE
Gensuite Audit and Compliance
Software Suite simplifies regulatory
compliance audit inspection processes
by streaming EHS audit data and
inspection programs. The Gensuite Audit
Software and Compliance Assurance
system surpasses other software
providers, allowing you to meet 2020
requirements with some up-and-coming
key features.
Meet program requirements (ISO, TS,
GMP, OSHA) and ensure regulatory
compliance with safety manage-
ment tools
Track inspection and corrective
actions with a suite of audit tracking
tools
Integrate results through perfor-
mance trend charting and business
insights
Proven, field-tested EHS Mobile
Software
Within the Audit and Compliance
Software suite you can unlock a number
of different applications and customize
them to meet your needs. Here’s a look
at a three of the top compliance tools.Why Compliance Training Makes for a Good Investment Effective compliance risk management can be viewed as a cultural ethic that should function like any other business asset that puts an organization at an advantageous position. An effective way to get there is through an intelligent risk framework that brings compliance into the open — running throughout all business processes, with responsibility shared among all employees. In order to convince your team to invest in compliance training, the chief compliance officer will need to gain the backing and support of stakeholders from across the organization, including executive peers, business unit and functional leaders, and the board of directors. The best way to achieve compliance is to make it an unalterable part of your corporate culture. By creating a culture of compliance, you might not solve all your problems, but you should be able to show that non-compliant employees are just that, rather than symptoms of a systemic problem. That critical distinction can reduce the cost of enforcement actions should they become necessary. First, make sure you have a firm grasp of your current organizational culture and its existing compliance problems. Then, make sure to get buy-in from department heads by explaining to them what’s at stake. Once they take compliance and its best practices seriously, their teams are much more likely to get on board. Also, remember to loop in the corporate legal team, which has a large stake in compliance issues. Compliance isn’t about any individual part of business, though it must be implemented at a granular level. The same ideas that relate to data compliance have parallels throughout a business. The universal goal is to get everyone working together.
Takeaways
“Real generosity toward the future lies in giving all to the present.”
– Albert Camus, Philosopher and Author
Compliance is essential in all areas of your business. Don’t wait for a major mishap to make
compliance important in your workplace. Invest in today, for tomorrow. Trusted partners, both
internal and external, can mean the difference between success and failure in transforming
corporate culture. Risk management software providers, lawyers, accountants, consultants,
industry groups, and even employees can all help companies understand compliance issues.
If it helps, a company can seek the assistance of a proper compliance assurance software.
These are effective tools for maintaining compliance within organizations. They enhance data
maintenance and decision-making processes, smooth work-flows for accountability and
transparency, as well as help track health and safety incidents with high levels of accuracy.
with being found non-compliant.
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