Regulatory compliance ensures that organisations and businesses, both public and private, adhere to laws, regulations and standards set by governing bodies. It involves creating policies, procedures and systems to minimise the risk of non-compliance. Regulatory compliance also includes conducting regular reviews and audits to ensure processes are followed correctly.
By implementing a comprehensive regulatory compliance program, organisations can protect themselves from potential legal or financial penalties associated with non-compliance. Additionally, it helps build customer trust by demonstrating an organisation’s commitment to responsible operations and corporate governance.
Regulatory Compliance Reporting
Regulatory compliance reporting involves providing evidence that a business or organisation is meeting its obligations.This can involve documenting processes, procedures and controls, as well as any changes made over time to ensure compliance.
Depending on the jurisdiction and industry, businesses may be required to submit regular reports detailing their efforts to remain compliant.These reports are typically reviewed by external auditors or regulatory bodies who evaluate abusiness’s overall risk management strategies.
What is a compliance report and what does it contain?
A compliance report assesses a business’ or organisation’s compliance with applicable laws and regulations. These reports may vary depending on the industry but typically include a description of the process in place to ensure compliance, details about the design and implementation of policies, procedures and controls, and any audit results related to regulatory requirements.
In addition to this information, the report should also include recommendations for improvement if any issues are identified during the review process.
Industries Subject to Compliance Reporting
Regulatory compliance reporting is required in a wide range of industries. Financial services, healthcare, manufacturing, education, banking, electronics, pharmaceutical, hospitality, defense and automotive are particularly heavily regulated due to the potential for significant risks because of non-compliance.
Government entities often require organisations to submit regular compliance reports as part of their oversight responsibilities. Regardless of industry, the goal of regulatory compliance reporting is the same: to ensure that businesses meet their legal and ethical obligations to protect stakeholders from potential harm or financial losses caused by non-compliance.
Common Standards and Regulations
Below is a list of standards and regulations that businesses must adhere to:
- Health Insurance Portability and Accountability Act (HIPAA):The US federal law designed to ensure the privacy and security of protected health information (PHI).
- Payment Card Industry Data Security Standard (PCI DSS):A set of standards developed by the Payment Card Industry Security Standards Council that establishes the minimum requirements for protecting data.
- Sarbanes-Oxley Act (SOX): The US law that establishes strict rules for business accounting practices, including internal controls and financial reporting requirements.
- General Data Protection Regulation (GDPR): The EU regulation aims to protect personal data’s privacy and security.
- International Organiation for Standardization (ISO): A global organisation that develops international standards for various industries including healthcare, finance and information technology.
- National Institute of Standards and Technology (NIST): The NIST Cybersecurity Framework helps organisations manage cybersecurity risks with industry standards and best practices.
- California Consumer Privacy Act (CCPA): The California Consumer Privacy Act of 2018 gives consumers more control over the personal data that businesses collect from them.
Advantages of Regulatory Compliance and Reporting
Regulatory compliance and reporting are essential for businesses in today’s world. Below are some of the benefits of regulatory compliance and regulatory risk reporting:
- Peace of mind: Businesses can be confident that their operations comply with applicable laws. By having all the necessary measures in place, organisations can rest assured that they are meeting their legal obligations and any potential risks or issues can be addressed quickly and easily.
- Show of integrity: Regulatory compliance and reporting allow businesses to demonstrate their commitment to integrity by implementing measures designed to protect customers’ data and privacy while allowing them access to needed services.
- Risk mitigation: Adhering to regulatory compliance and reporting also allows businesses to mitigate risks associated with their operations. By understanding the regulations, they can identify potential threats before they occur and address them accordingly.
- Vendor accountability: Regulatory compliance and reporting help ensure that vendors are held accountable for their actions. By setting clear expectations and requirements, organisations can hold their vendors to a high performance standard.
Cover All Your Bases with a Compliance Manager
Regulatory compliance and reporting seem like a daunting task, but it doesn’t have to be. FinregE is here to help you every step of the way to ensure that your business remains compliant with all applicable laws. We also assist with generating comprehensive compliance reports.
As your partner, we’ll provide ongoing support in understanding regulations, mapping out processes, monitoring and tracking changes and more.Book a demo or schedule a consultation with our team of experts today!