(Newswire.net — October 10, 2018) — Why is regulatory compliance important? Regulatory compliance is a term we come across ever so often but what it exactly means is often misunderstood. In an attempt to reach their goals, companies have to comply with laws, policies and regulations. Over time, the government has imposed a lot of regulatory features and the need for operational transparency, which makes these organizations adopt consolidated and harmonised compliance controls.
Violations of such laws are a punishable offence since these laws have been set there for the welfare of the customers. A customer feels assured while obtaining products and services from a company which adheres to the regulatory compliance.
If a company fails regulatory compliance, it can lead to millions of dollars in fine and even imprisonment and can irrevocably damage your reputation. There are three kinds of regulatory compliances:
HIPAA
The acronym for Health Insurance Portability & Accountability Act, which regulates those establishments that deals with patients health records – hospitals, pharmacies and clinics.
SOX
Sarbanes –Oxley Act which is created in lieu of a large number of scandals involving major corporations, and deals with governance, auditing and financial divisions.
PCI
Payment card industry protects an individual’s card information.
For the public to trust any organization with their personal data which can very easily be abused, makes it extremely mandatory to have a regulatory compliance certificate.
With newer technologies, it gets even easier to hack the data. Thus experts are required to maintain confidentiality. Lawmakers are stringent, and it depends entirely on a company to abide them.
By adhering to regulatory compliances, you reap a lot of advantages such as: it increases efficiency, maintains a certain quality, creates a brand name and provides fair competition. By following regulations, you can rest assured that you won’t have to face any hindrance and also provide safety and quality standards, making your brand a household choice.
So, why is regulatory compliance important? Laws and regulations aren’t easy to understand for non-specialists, and that’s why this article gave you an idea of why businesses should focus on regulatory compliance. It not only entails many regulations for various things, but a business can also reap the benefits that being compliant may offer as well.