As you manage a business, you’re probably more focused on the customers, services, and profit. This has people forget about ethics and compliance with government-mandated rules and regulations. When you ignore such regulations, you end up costing your business a LOT.
Based on a report by IBM, the average costs of data breaches can cost up to a whopping $3.62 million. But if you manage compliance well, your business can stay away from any issues before they become major problems that cost you a lot.
But why exactly is compliance important and why should it be maintained properly? Check out the reasons why:
- It reduces legal problems
For those with profit in mind, you’ll need to comply with federal regulations. Industries need to comply with federal rules and regulations to protect the business and their customer’s sensitive information. For instance, there are organizations and hospitals which receive, store, maintain, and transmit their patients’ health information to meet HIPAA compliance requirements.
Besides negative press, violations may result in $1.5 million yearly, among other legal settlements. That’s a lot of money lost!
- Improve the operational efficiency and safety
Some rules and regulations would benefit your business even more than harming it. For instance, tools from True Office Learning will train employees about discrimination and harassment in the workplace, which helps create a much better working environment while enhancing employee productivity.
There are also safety and security rules to follow, which would help prevent accidents, injuries, and keep building evacuations safe.
- Enhance public relations
Another benefit meeting government-mandated compliance gives is an improved company reputation from the public’s perspective, along with the stakeholders and regulators. You can show off your achievements and compliance on your marketing campaigns and websites, which will increase your reputation and trust.
- Increase customer trust
Speaking of trust, compliance will help drive profitability through fostering customer trust. Customers are what will keep a business running and by complying with federal regulations, customers are aware that you prioritize their security and safety.
For instance, HIPAA compliant healthcare providers will gain more trust from patients, thus getting business from them. If a lawsuit and fines damage the company’s reputation, records of compliance will do the exact opposite.
- Improved employee retention
Employees can damage the compliance efforts of a company. It can be through a data breach if an employee accidentally leaves his laptop unattended, or opens emails that needed to be deleted. The same goes for mobile devices.
When working on security for compliance, the entire workforce needs to be included in this process. Employees have an important responsibility in securing sensitive information and you need to train them to secure it.
By having a stronger sense of responsibility and excellent work culture, it will attract and retain skilled employees to have a business continue reaching goals.
Wrapping It Up
By following compliance rules and regulations, you get to reap many benefits that will help your company rise in the long run.