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What Is Compliance Management?

Compliance means making sure your company meets your industry’s rules, regulations, and obligations.

In the IT world, compliance usually involves data security.

No matter what industry your business is in, you need to take data breaches seriously. Certain industries, however, must comply with federal laws when it comes to protecting information.

The Benefits of Compliance Management

There are many reasons to take compliance management seriously. Here are a few of the most important -

1.) Reduce Your Legal Risks and Avoid Future Costs

Compliance will help your company avoid legal risks. Lawsuits and settlements can easily cost you millions of dollars. Fines and other compensatory payments can also add up.

Even if you are able to pay these costs, you might see your sales drop dramatically. If you failed to protect customer credit card information and fraudulent purchases were made, you will probably lose customers who no longer trust your brand.

Damage to your company’s reputation can take years to repair. It’s impossible to estimate just how much monetary damage it can do. It’s better to practice good data security and avoid a breach altogether.

2.) Build Trust with Your Customer Base

Complying with federal laws will show your customers that you care about keeping them safe.

While lawsuits or fines will damage your reputation, a record of compliance will show you are running a trustworthy operation.

3.) Engage with Your Employees

Employees can present real challenges when it comes to compliance management. Sometimes a breach happens when an employee opens an email they should have deleted. They might be careless with passwords and other sensitive information.

Mobile devices can also throw off your security plans. Your company network may be fully protected, but if your employees are entering sensitive information on their own cell phones and laptops, a breach is possible.

As you work on improving your cyber security, bring your workforce in on the process. Let them know that they play a big role in your organization and its data. Take the opportunity to teach them how to secure company data and consider offering incentives to those that do.

4.) Get a Great Story to Tell Your Customers

A safe and trustworthy company reputation is a great source for positive PR.

The best PR plans don’t just avoid the negative news, they create positive stories for your company. If you improved your data security, let your customers know! They’ll feel better entering their credit card information if they know their bank accounts are safe.

5.) Regular Audits Can Improve Your Compliance

The best way to avoid any risks for your business is to complete regular audits of your organization. An IT compliance professional can take a close look at all aspects of your company’s cyber security.

They can assess whether or not you’re complying with industry regulations. They will go through federal law with a fine-toothed comb to see if you are checking all the boxes.

They can also make sure your system isn’t vulnerable to any online threats. If they find a weak spot, they can help you shore up your defences before a data breach occurs.