The Top 5 Hidden Benefits of Regulatory Compliance in Business

Key Takeaways

• Compliance helps to streamline work operations, increases efficiency, protects from cyber threats, gives a competitive edge, and safeguards business resources.  
• The absence of compliance can lead to chaos.
• Compliance experts help to improve intercompany communications, improve HR resources, make recommendations for increasing profit margins, and much more. 

Nothing makes a business owner groan like a mention of regulatory compliance with government regulations.

Politicians on both sides of the aisle are ever eager to stoke their constituents in the business community with dreams of “cutting regulations” to streamline work operations.

However, in their private moments, even the most aggressive organization types will admit, if sometimes only begrudgingly, that without some regulation, there would be chaos.

But let’s look at the bright side. The fact is that regulatory compliance can produce advantages for businesses. Let’s examine:

Top 5 Hidden Advantages of Regulatory Compliance

Following mandated compliance guidelines can bolster efficient business operations. That’s because it requires a steady process of analyzing and reporting data findings. This encourages company owners to become experts in data management, which has the side effect of adding many kinds of efficiencies that otherwise would not be realized. Just about all business today is “data-centric” business.” Regulation compliance supports better data skill sets in an organization.

A lot of regulation today is focused on cybersecurity protection. In recent years, major headlines have involved ransomware attacks and denial-of-service attacks on major business models that are a priority to American commerce and overall security. Few firms can compete these days without advanced digital technologies to perform a variety of functions. A regulatory requirement to present a sound cybersecurity plan prevents a lot of serious trouble.

Customers are increasingly paying attention to the way businesses operate on several levels, but especially in terms of environmentally friendly, low-carbon footprint, reduced waste, and humanitarian practices. Compliance with regulations is all about solidifying the positive reputation of a company. That includes peers as well as customers. Avoiding issues like license revocation or paying fines is a significant concern for a company that wants to thrive.

Regulatory compliance can increase competitive ability, not hinder it. That’s because over-aggressive firms that cut corners often find themselves in hot water with the government or consumers. Those who keep current with rules keep their ship running smoothly, while others who are less compliant sooner or later run into expensive snags.

Certainly, history has shown that not all regulations are helpful or needed. Businesses have undoubtedly suffered from poorly chosen or ineptly crafted ordinances that do more harm than good. However, with the opposite – a well-crafted ordinance – the benefits across various issues are undeniable.

That includes everything from consumer protection from dangerous products to empowering customers to make informed choices they feel good about. Of course, regulations curb pollution, tamp down unfair business practices, and contribute to safer, healthier, happier societies that are more equitable for all. Regulatory compliance may be a pain for the organization’s owner who likes to sleep at night, but benefits compliance leads to pleasant peace of mind.

Experts Needed to Get Compliance Done Right

Do You Know?
North America shares the highest ratios of regulatory compliance amongst different regions, according to ResearchGate. 

Benefits notwithstanding, there’s no doubt that the level of compliance with myriad ordinances in this complex world is probably more challenging today than at any other time in history.

That’s why more companies are opting to hire professional regulatory compliance specialists to get the job done. Meeting all regulations and ensuring a firm is properly running with everything can be a monumental effort.

That’s why a distinct field of professionals has emerged whose sole purpose is to help a company navigate the numerous thorny issues that it always entails.

Benefits of Working with a Pro

The good news is that regulatory compliance experts do more than enable their clients to stay out of trouble. The best ones are proactive. That is, as they comb through its standards and create protocols to achieve that goal, they bring added value. Some examples might be:

• Significantly improved employee and intercompany communications.
• Better human resources (HR) management.
• Introducing technologies to generate new greater efficiency.
• Making recommendations to increase profit margins by leveraging compliance itself.

Make It So

It’s best not to think of regulatory compliance as a “necessary evil” but as a bona fide process for building a more profitable company with a loyal customer base and a solid position within the market for years to come.

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