Regardless of the industry you’re in, most businesses have regulations and requirements they have to abide by, making compliance an essential part of being successful.
The cost of maintaining compliance
The cost of regulatory compliance averages $12,000 a year for most small businesses, says the National Small Business Association. For new businesses, direct and indirect costs to stay compliant in the first year top $80,000.
Of course, the cost of non-compliance can be much steeper. HIPAA violations range between $100 to $50,000 per violation or record with a maximum penalty of $1.5 million per year, and Sarbanes Oxley fines are up to $5 million and 20 years in jail. Regardless of the monetary cost of non-compliance, loss of production and reputation may take a higher toll on your business.
The rules that regulate your regulation
From Food and Drug Administration and the SEC to OSHA regulations, businesses ranging from healthcare, finance, agriculture and energy face complicated rules – and the number of rules are ever-increasing. In 1960, the U.S. Code of Federal Regulations was about 20,000 pages; today, it has over 185,000 pages – an 825 percent increase!
Tracking is an important component of managing compliance. Whether you’re an importer needing to trace your product from point-of-origin to point-of-sale or an oil producer tracking equipment parts from the manufacturer, the success of your business (and, often, the safety of your customers and employees) are dependent upon your ability to meet tracking requirements.
The sheer complexity of being compliant makes it necessary to use technology to meet requirements.
As with many government programs, compliance programs tend to be complicated and time consuming. Integrating compliance tracking into your culture is not as simple as reaching out to colleagues to borrow a spreadsheet. An experienced, professional IT managed services provider is the best resource for implementing a seamless, automatic tracking system into your regular operations and existing technology.
As your personal Chief Information Officer, DiamondIT helps you manage compliance tracking projects:
- Help evaluate and select the best software for compliance tracking
New software can be problematic if your IT provider hasn’t inspected it to make sure it will work with your existing resources and to assure that it does what it says it will do. DiamondIT works with you to evaluate the software that will work for your current systems.
- Ensures hardware requirements are in place
New software may have different hosting requirements than you have in place. DiamondIT ensures that your new software is compatible with your hardware.
- Advises on ways to integrate the app into your day-to-day operations
Don’t make the mistake of purchasing software without knowing whether or not it will integrate into your operations. Software vendors often don’t look past their own apps to see if the new app will integrate with your existing infrastructure.
- Monitors your system
Lapses in compliance tracking can lead to messy audits when the government comes calling to inspect your compliance management. An MSP monitors your systems to ensure your software is up-to-date and functioning optimally.
Don’t end up with a compliance tracking system that fails to meet your needs. Let Diamond IT help you address your compliance needs so they are effective and fit into your current technology environment.