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Why Compliance is a Big Challenge for Enterprises?
While regulatory compliance is mandatory, challenges lie galore in implementing them correctly.
- Regulatory compliance can be overwhelmingly complicated because of jurisdictional problems, compliance jargon, and the level of understanding of employees at different levels in your organisation.
- Regulations vary from one industry to the other and local to global. For example, some prominent regulations include General Data Protection Regulation (GDPR), Federal Information Processing Standards, Payment Card Industry Data Security Standards (PCI-DSS), Occupational Safety and Health Administration (OSHA), Health Insurance Portability and Accountability Act (HIPAA), Food and Safety Standards (EFSA), and others.
- Regulations keep changing with time, and business owners must keep up with them by updating their tools and technologies.
- Sometimes, technological improvements can make compliance problematic. The more innovative the services or products, the more challenging the regulations pertaining to them could be.
- Often, new laws and regulations are being formulated. It forces organisations to implement controls to comply with quality, anti-money laundering, data privacy and security, and climate regulations.
- With the regulations becoming complicated, even large organisations find it challenging to comply, despite possessing high-quality personnel and technological competence.
- Small businesses have compliance of their own. That makes things more problematic for small business managers to comply with statutory regulations.
Despite the challenges, compliance with statutory regulations is mandatory. The risks of non-compliance can affect the business’s bottom line because the financial penalties can be massive.