When it comes to who needs compliance software, the first thing that comes to mind is large banks that need to comply with thousands of different laws and regulations every day. Yes, such organizations do invest huge sums in special software development, but they are not the only ones who need it. Considering the constant growth and increasing complexity of the set of rules and regulations of working with personal data, compliance software is becoming essential for any company. Let’s discuss why in this article.
Problems with compliance
Doing any business means complying with a number of rules, both within the company and with external regulators. And employees need to understand why they need to comply with these rules and what consequences for the company will result from their failure to do so. If employees do not understand this, the company and its customers are at risk.
According to a Gartner survey, more than half of employees in various industries knowingly violate company policies and requirements. Most of the violations involve the following aspects:
- Cybersecurity.
- Use of company resources.
- Workplace behavior.
Employees were also asked why they violate policies. The most popular answers were as follows:
- There are too many regulations, it’s impossible to comply with them all (38%).
- The rules are too complicated (16%).
- Compliance with all the rules takes too much extra time (14%).
It turns out that even if employees follow all the rules and regulations, it will affect their productivity. Compliance with complex regulations is time-consuming and fatiguing.
In this situation compliance software becomes a great solution. But before we move on to look at such software options, let’s understand what compliance is in principle.
What is compliance, and what does it mean for business
The word compliance itself simply means doing the right thing: complying with rules, laws, etc. In business, compliance is part of the concept of GRC. GRC is a set of measures that a company takes to comply with internal policies, the requirements of external regulators, and government laws.
GRCs are mostly associated with banks, as they not only control customers’ money, but also engage in margin trading. But compliance with regulations is not just a task for financial companies. Doing any business involves a lot of risks.
For any company, there are a myriad of rules that must be followed. Even business owners and decision-makers who are interested in compliance can find it difficult to meet all the requirements. With employees the situation is even more difficult – as studies show, many do not even have the motivation to do everything right.
Faced with such problems, entrepreneurs pay attention to compliance software.
How compliance software can help your company
There are several types of compliance software:
- Technology that limits risk by automating some routine and time-consuming functions.
- A program that aggregates information in one place to simplify reporting.
- A training application that helps employees learn new regulations and alerts them to rule changes.
According to the Software Advice survey, process automation and risk management software is the most popular – it is chosen by 73% of respondents. Such software allows not only to ensure compliance, but also simplifies the work of the employee, relieving him of routine duties. This, in turn, increases the efficiency of work.
Software Advice surveys also confirm the usefulness of compliance training software. In companies where such software is not used, about half of employees are not aware of current requirements and do not understand company policies. With regular training with special software, the number of employees who don’t comply is cut in half.
As a rule, each company needs customized compliance software that meets its policies. Although regulatory requirements are usually universal within one country and one area of business, it is wise to develop compliance software at once, taking into account internal requirements.
Developing your own software can be a difficult task, especially if the company is not in the technological sphere and does not have a fully formed IT department. In this case, there are two convenient options:
- Order the development of software from third-party contractors.
- Entrust the coordination of the project to the company’s IT specialists, and bring in additional employees from outsourcing.
However, the services of outsourced developers are used also by large companies, because it allows you to quickly solve the problem of lack of working resources. Andersen’s experience shows that when 20 people work on a project and it becomes clear that another 5 specialists are needed for successful completion in time, companies turn to outsourcing for help.