Balancing Regulatory Compliance and Business Needs

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1 DivergeIt Font name: Museo Sans 900 Balancing Regulatory Compliance and Business Needs

2 Balancing Regulatory Compliance and Business Needs Regulatory compliance is something of a beast. It s complex, which practically goes without saying. Whether we re talking about PCI DSS, HIPAA or SOX, the hoops a company has to jump through to demonstrate adherence to every regulation are extensive. Maintaining compliance takes time and money. A lot of money. $250 Billion Regulations passed since 1980 cost US businesses about $250 billion per year. US Office of Management and Budget The cost of compliance. While it s extremely difficult to accurately gauge the overall cost of regulatory compliance, the US Office of Management and Budget has made an educated guess. According to their projections, regulations passed since 1980 cost US businesses about $250 billion per year. And that s just to remain compliant. 2

3 If your organization is non-compliant, the cost goes up even more. Take PCI DSS, for example. Fines run as low as $5,000 and as high as $100,000 per month. A lax attitude toward regulatory issues gets expensive fast. One of the prime reasons for the rising cost of compliance has to do with personnel. There simply aren t enough experienced, qualified compliance professionals out there. As a result, industry insiders expect the cost of hiring skilled compliance staff to continue to rise. Diverg Font name: Museo Given the potential penalties, businesses of all sizes have little choice but to do what must be done to get compliance right. Compliance isn t enough. But there s an inherent problem there, too. It s not enough to be compliant. Your profits aren t based on regulatory compliance, but on the overall performance of your company. Furthermore, while many regulations focus on keeping personal records safe, compliance does not equate to a complete cybersecurity plan. Because compliance demands significant investments of time and money, it s critically important to develop a compliance strategy that plays into how your company actually functions. Regulatory requirements are essentially 3

4 broad strokes. They apply to businesses in different industries, at different locations, with different goals and different target markets. Consider, for example, how many businesses depend on credit cards for payment. It s fundamentally good to have a common set of rules for how credit card information is processed and stored. But the burden falls on each individual organization to follow those rules in ways that makes sense for their business. Did You Know... One of the prime reasons for the rising cost of compliance has to do with personnel. And security is a whole other matter. As MSPmentor rightly points out, too many organizations mistakenly assume that passing compliance audits is enough to prove that their security policies are effective, making them easy targets for cyber criminals. What a shame to go to all the trouble and expense of maintaining compliance only to leave yourself more vulnerable. It s time to get strategic. Compliance isn t an option. It s something you have to do. Even if it s inefficient. Even if it s expensive. But let s take a step back. Rather than focusing on compliance, let s focus on something that matters even more. Your business s success. Every other component of your operation is rooted in strategy. You don t market haphazardly. You re calculated in how you pursue sales. You even take the time to ensure that seemingly mundane stuff, like inventory tracking or process management, is handled efficiently. The goal is to lower expenses and maximize profits in every area of your business. Why wouldn t that also apply to regulatory compliance? It can and it should. 4

5 The case for outsourcing. There are two ways to weave a strategic approach into compliance. The first we ve already touched on briefly. You can hire dedicated staff to monitor regulatory requirements and oversee internal compliance. Regulations are in a constant state of flux, so there s no one-and-done solution. If you go this route, you ll need a highly skilled, knowledgeable, experienced professional on the payroll. As was previously mentioned, there s a shortage of these experts at the moment. Hiring additional staff will be challenging and expensive. That s why an increasing number of organizations are opting for the second solution. You can outsource compliance management. Outsourced compliance management gives you access to the same kind of expert resources without the hassle or cost of extending your own staff. Plus, if you outsource to a firm that can also handle cybersecurity and general IT management, you get the benefit of a compliance strategy that folds into how your company works at a foundational level. 5 Diverg Font name: Museo

6 While it s entirely possible to manage regulatory compliance on your own, it s neither cost-effective nor practical. By outsourcing this necessary facet of business, you solve multiple problems and eliminate a number of typical headaches. Font name: Museo Diverge IT has you covered. At Diverge IT, we understand how important it is to make sure your business is compliant. We also understand the value of integrating compliance with the rest of your IT strategy. We have the knowledge and experience to help you meet the rigorous demands of regulatory requirements while simultaneously taking advantage of every possible opportunity to be more efficient... and more profitable. If you re tired of tackling compliance on your own, let s talk. We re serious about making sure you have all the resources you need for compliance and for success. Diverg Los Angeles 2980 Columbia St Torrance, CA (310) DivergeIt Font name: Museo Sans divergeit.com