17 Mar The Different Types Of Compliance And Why They Matter
Compliance is an important topic, whatever your business or industry. While every sector has its own set of best practices, areas of compliance, and codes of conduct, the key areas of concern remain largely the same.
Compliance is important chiefly because of the ways that it helps to ensure safety, security, and optimal business protocols. This is vital not only for keeping clients and consumers safe, but also to make sure that the teams and personnel within the business itself are protected.
The overall success of the business can also be dependent on its compliance. Being found in breach of certain regulations — especially in one of the areas listed below — could harm the reputation of the company, endanger customers and coworkers, or result in sizeable fines from which the business may not recover.
But help is at hand! Below, we explore some of the different types of compliance and why they matter for you and your business.
This way, you will stay informed of the most important areas and know which expert professionals to hire if you require further assistance.
1: Financial Compliance
Being financially compliant entails meeting all the necessary rules and regulations of your industry, nation, and other regulatory bodies. It may involve keeping detailed records, invoices, and receipts, and being able to produce evidence of the provenance of payments when asked.
As business finances can be an especially complex area that requires specific expertise, the majority of businesses choose to entrust this to qualified professionals such as accountants and financial advisors.
The rules and regulations for financial regularity — such as for corporation tax or VAT — are constantly changing. Rather than struggling to stay up to date, consider hiring a professional who can ensure that you are fully compliant.
2: IT And Data Compliance
Online compliance in areas such as IT security and data protection are relatively new fields, but ones of ever-increasing importance. The recent General Data Protection Regulation (GDPR) laws, for example, aim to control how companies use and protect their customers’ data, among other things.
Already, mistakes in this area have cost some household name corporations tens of millions of dollars in fines. But even smaller businesses must pay very close attention.
Each industry will have a different required standard for security and data management. For example, businesses operating in the healthcare sector may need to have an especially robust system in place to protect their users’ medical data.
However, the online security and safety of clients and customers should be of paramount importance to all businesses — especially when handling sensitive information, online payments, and personal details.
Correctly managing customer data is a specialised area, which is why many businesses choose to hire a qualified professional to oversee the process.
3: Health And Safety Compliance
Health and safety compliance is one of the more immediate concerns because it can directly relate to how safe and secure your physical workplace is. Mistakes in this area can lead to accidents and even loss of life, instead of just legal or financial complications.
It is extremely important to abide by your industry’s standard code of safety, and also to be aware of the national obligations and guidelines — such as on fire safety practices or evacuation escape routes, for example.
It is vital to not only regularly check for updates on the rules and regulations, but also to physically implement the changes to your premises. This may mean allocating a specific part of your company budget to construction costs, so the required alterations can be made quickly and precisely.
Bringing in a professional can be a great way to get a fresh perspective and an objective overview of how safe you have made your workplace. In fact, the health and wellbeing of your clients, customers, and workforce may depend on it.
To communicate your commitment to safety, ensure that you are up to code, and get certified wherever possible. Certifications will not only ensure that you are in compliance with the required rules and regulations, but they also signal to your clients that your business is legitimate and responsible.
4: Legal Compliance
Legal compliance can be a general term for overall compliance, but may also refer to contractual compliance and abiding by the rules set out in an agreement.
When dealing with legally binding contracts or agreements, it is especially important to seek the advice of a qualified legal professional. They can ensure that the contract is fair and appropriate, as well as help to simplify some of the complexities so that everyone knows what is expected of them.
Aiming to achieve compliance in all areas of your business does not have to be tedious or time-consuming. By entrusting some of the key processes to professionals, you will reap the benefits of a business that is safe, secure, and industry-leading in its codes of conduct.
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