I’m sure that when the words ‘regulatory’ and ‘compliance’ are uttered, they are not usually met with shouts of joy and merriment from the company’s management, irrespective of the industry. Regardless, regulatory compliance is of paramount importance in every business, no matter the type or size of the industry. With the increasing number of rules and regulations to abide by, it is imperative that the companies change their outlook and give compliance its due importance.

WHAT IS REGULATORY COMPLIANCE?

Regulatory compliance is the organization’s abidance to the laws, policies, specifications, and standards laid down by the relevant regulating bodies. These laws are made keeping the safety of consumers and the environment in mind. Not complying with these regulations can land organizations in big trouble. Non-compliance can result in hefty fines, negative publicity and in some cases, banning of the product or the operation. Basically, the success of your organization could depend on how compliant you are.

NEED FOR COMPLIANCE

Compliance is applicable to all, irrespective of which industry or country you belong to. Examples of regulatory laws in the USA include the Health Insurance Portability and Accountability Act (HIPAA), Federal, Food, Drug, and Cosmetic Act (FFDCA) and the Federal Information Security Management Act (FISMA).

The rules may vary depending on the industry or the scale of the business. Some industries may be more heavily regulated than others, like finance, healthcare, and life sciences. The aim is to make the whole process as transparent as possible to the public. Financial industry regulations aim to protect the interests of the investors and the general public. Healthcare is a booming industry and is subject to stringent regulations. Healthcare regulatory compliance serves to protect the privacy of sensitive patient records. Organizations that deal with such health-related sensitive data need to demonstrate that they have taken the necessary measures to comply with the rules regarding the privacy and security of such data.

Organizations that deal with such health-related sensitive data need to demonstrate that they have taken necessary measures to comply with the rules regarding the privacy and security of such data.

Manufacturing industries are regulated to ensure that the quality of the products meet the standards and that they are compliant with the current good manufacturing practices (cGMP).

COMPLIANCE FOR SMALL AND MEDIUM BUSINESSES

Small and medium-scale organizations are no exception. In fact, they need to be extra cautious in following all the relevant rules and regulations to build a strong customer base and avoid unnecessary complications. Customers will always prefer establishments that are compliant and safe. Companies need to change their perspective and view regulatory compliance as a boon and not a bane. The rules are made to aid in the development of the industry and to protect the interests of everyone involved. It is the ethical and legal duty of the organizations to abide by the regulatory compliance laws.

Compliance should be incorporated at the grassroots level and the information should be easily accessible to the employees. This creates a better working environment and increases productivity. Periodic mock audits are a good way of ensuring that all the requirements are being met while eliminating the errors.

Compliance can be viewed as an opportunity to address risk management. By complying with the rules, you are reducing the risks that your business may be exposed to. Once the compliance strategy is in place, it is important that the knowledge is shared. Compliance should be incorporated at the grassroots level and the information should be easily accessible to the employees.

This creates a better working environment and increases productivity. Periodic mock audits are a good way of ensuring that all the requirements are being met while eliminating the errors. Compliance can be viewed as an opportunity to address risk management. By complying with the rules, you are reducing the risks that your business may be exposed to. Once the compliance strategy is in place, it is important that the knowledge is shared. Compliance should be incorporated at the grassroots level and the information should be easily accessible to the employees. This creates a better working environment and increases productivity. Periodic mock audits are a good way of ensuring that all the requirements are being met while eliminating the errors.

There is a growing need for compliance officers to keep pace with the ever-changing compliance laws. They make navigating through the sometimes muddy waters of regulatory compliance easier. A smart move would be to anticipate future trends while developing new technology. Compliance never hinders progress, but rather, it aids it. The regulating bodies may spring surprise visits and companies should be well-prepared. Keeping yourself updated about the compliance practices will ensure that you breeze through the inspection. Trust me, being on the regulating agencies’ radar is not a pleasant experience

WHAT HAPPENS IF YOU IGNORE COMPLIANCE ISSUES

This is equivalent to placing head in between the alligator’s jaws and hoping come out unscathed. It’s not possible. non-compliance dealt with strictly, especially high-risk sectors. Consequences include hefty fines, legal action, reputational damage, removal of product from market if deemed unfit, or even jail time. Commpany will be subjected a series audits ensure that guidelines are being adhered to means lot time resources wasted once found guilty violating regulatory laws.

For example, the Occupational Safety and Health Administration (OSHA) can issue fines to any organization that willfully or repeatedly violates the protocol that has been laid down. The maximum penalty is $70,000 and the minimum penalty is not less than $5,000. This is no small amount, especially for small organizations. They have a much harder time dealing with violations compared to established ones. The Dollar Tree Stores in Boston were fined $177,800 for hazardous conditions and blocking exits. The Department of Labor’s Wage and Hour Division (WHD) who is responsible for wage-related compliance issues fined Manna, a restaurant chain operating in New York for $ 1 million with regards to non-payment of wages.

Companies may be under the misguided impression that compliance is expensive and unnecessary. They couldn’t be more wrong. It is a proven fact that the cost of non-compliance is far greater than that of compliance. It isn’t easy for organizations to bounce back once they are penalized for non-compliance. It’s very hard to gain back the trust of the clients and customers once it has been breached. The money spent on lawsuits and fines could have been better utilized in growing your business. The time and resources spent on research and manufacturing is a waste if the product is shelved. There is a lot to lose by not conforming to the rules and regulations. Prevention is always the answer.