IT Regulatory Management is the process of properly overseeing the execution of government-imposed rules and regulations for procedures, allowing a company to stay in compliance. The extent of this type of management process requires IT regulatory managers to have a thorough understanding of the nature and implementation of all regulations about a certain business. It is possible to build numerous internal policies and procedures with the help of these managers, allowing the company to stay in compliance and prevent any form of regulatory sanction.
Depending on the industry, the specific nature of IT regulatory management will differ. For instance, regulations governing the management and disposal of hazardous materials will be a top priority for regulatory managers in manufacturing plants. Workplace safety measures will also be given a lot of thought, with the IT manager ensuring that they at least satisfy current governmental regulations. A regulatory manager is frequently in charge of ensuring that federal and state rules involving wages and salaries are followed.
What Makes IT Regulatory Management So Important?
The massive number of rules, regulations, standards, and guidelines has expanded substantially during the last century or so. Compliance is no longer limited to the financial services and healthcare industries; it now affects every industry and has become an integral aspect of business operations.
1. Regulatory Environment is Always Evolving
The compliance target is always shifting as the IT regulatory environment evolves. Something may move just as you’ve reached full compliance, and you’ll need to adjust your method to stay in compliance. Your company must be adaptable; otherwise, you are putting your company at risk.
If your company does not follow the rules, you risk facing legal action and financial penalties. According to recent research on cyber breach cases in the United States, the United Kingdom, and Canada, the majority of instances and total losses (fines and settlements issued) are on the rise. The average cost per case increased nearly two-thirds from $4.4 million to $7.2 million in just one year from 2017 to 2018.
IT regulatory management aids in the safeguarding of your company’s assets and reputation. Building trust with customers, prospects, and suppliers takes time, and a significant part of that is based on your ethical behavior. The cornerstone of your company’s reputation is compliance. One compliance blunder can sometimes be all it takes to shatter the confidence that has been built over many years.
Your business may lose access to specific sectors of your client base if you do not follow compliance laws. For instance, breaking HIPAA standards could result in your business losing access to various insurance companies or jeopardizing its state license.
Finally, consider how much time your company will have to spend dealing with a compliance issue, such as a security breach caused by a database hack.
3. It Protects Your Business
The rules are in place for a reason: they safeguard your company, its employees, and its consumers. Failure to comply with regulatory compliance standards might expose your company to more than simply fines. Security standards, for instance, are in place to defend against data breaches, financial regulations are in place to prevent fraud, and safety regulations are in place to keep workers safe. These regulations aren’t in place to make life more difficult for you. However, following the rules benefits both your organization and the people who work for it.
How to Put an IT Regulatory Management Plan in Place
Because IT regulatory management is so important, your company should adopt a comprehensive, deliberate approach to developing a successful regulatory program.
To create a regulatory program, follow these steps:
1. Perform a Compliance Audit
A complete audit is the first stage in IT regulatory management, as it establishes a compliance baseline and identifies any issue areas. Everything from security policies to risk management procedures will be evaluated for strengths and shortcomings.
2. Appoint a Corporate Compliance Officer
In many businesses, the specific function of a corporate compliance officer (CCO) is gaining traction. The CCO is the person in charge of promoting business integrity, accountability, and ethics. Because of the time-consuming nature of creating and maintaining a compliance program, the CCO’s sole responsibility is to stay abreast of the constantly changing regulatory environment and make the necessary compliance judgments.
3. Create and Update Your Policies and Procedures
Having policies and processes isn’t enough. They must address the specific issues of compliance found in the aforesaid audit. They also need to be examined on a frequent basis to keep up with the ever-changing regulatory landscape. That is why appointing a CCO is beneficial.