Recent years have seen a marked increase in the number of companies that are implementing risk management solutions as they become more cognizant of the many threats and vulnerabilities that their organizations confront. Events such as the COVID-19 pandemic really drove home a harsh reality: even the most profitable, well-established companies can be taken down by an unmitigated threat.
Enter: risk management solutions companies. These organizations specialize in all facets of risk management and risk mitigation, ranging from third-party risk management (TPRM) to governance to risk and compliance (GRC) and beyond.
As more and more regulatory bodies are established and non-compliance fines reach historic — and even record-breaking — levels, regulatory compliance burdens have emerged as a key motivator for seeking the help of compliance solutions companies and deploying risk management software systems. The best, most comprehensive risk management software platforms include a variety of regulatory compliance-related tools, although there are a number of stand-alone systems available too.
But even the most sophisticated risk management software can fall short if you lack the knowledge and insight required to use it in a way that brings maximum benefit with a sizable ROI. This is where an organization can benefit from an engagement with a risk management consultant from a compliance solutions company.
There are many benefits of using top compliance solutions companies to identify and mitigate the threats and vulnerabilities that can arise from prospective regulatory compliance risks. And the good news is that these advantages extend far beyond the more apparent benefits such as industry-specific experience and a high volume of in-house resources.
Greater Compliance Risk Management Efficiency Brings Financial Benefits
By working with one of the top regulatory compliance solutions companies, your organization can see benefits such as financial savings and a higher ROI for both your regulatory compliance software and for your investment in those risk management services.
This is achieved through the streamlining and optimization of your risk management efforts. Expanding your risk management strategy to include a broader scope can also bring similar benefits to the table.
The top compliance solutions companies have extensive experience in this area and they typically begin with a comprehensive investigation into the client’s organization and all of its risk management activities, including regulatory compliance risks and vulnerabilities. Once the consultant has a solid idea of where the problem areas or deficiencies lie, they will be well-positioned to develop a new regulatory compliance strategy as part of a larger risk management plan.
From here, your compliance risk consultant will guide your organization through the implementation of a new or revised risk management action plan. This phase of the process often includes the deployment and configuration (or re-configuration) of a risk management software system. These platforms include a broad variety of risk management tools that can dramatically increase efficiency and improve a company’s entire response to threats and vulnerabilities. The net effect is financial savings, a lower cost of risk management, and significant ROI when the regulatory compliance software is configured and implemented in the proper manner.
The Benefits of Guidance on Regulatory Compliance Reporting, Related Tools, and Data Management
Reporting and data management are two key areas where an organization commonly encounters challenges. The two are interlinked because accurate data is at the core of effective reporting and reporting is vital for achieving and maintaining regulatory compliance in a majority of cases.
Periodic reporting is a requirement for many regulatory bodies that maintain oversight in highly-regulated industries such as healthcare, finance, insurance, investment, manufacturing, and beyond. But to compose an accurate report, you need accurate, high-quality data sets. To achieve this, an organization must maintain good data management practices. But that is much easier said than done. The data management landscape is complex, spanning data collection, data transmission, data retention, data analytics, data storage, and data visualization. Navigating this landscape can be very challenging and few companies maintain a good handle in all aspects of data management.
A regulatory compliance risk management company can perform a review of past compliance-related reports, data management practices, and data architecture to identify problem areas and vulnerabilities. Then, they will oversee the development and execution of an action plan to resolve the deficiencies. This can include everything from the deployment of a new data lake to the development of new practices and protocols for data collection and reporting.
An added benefit: by optimizing and streamlining an organization’s data management efforts, you may simultaneously reduce your compliance-related risk level. Poor data management practices such as insufficient encryption levels or the wrong data storage conditions can easily lead to a HIPAA violation for an organization in the healthcare space.
Another example would be an improper data retention timeframe setting — a condition that can lead to data loss, resulting in recordkeeping violations. Recordkeeping violations may lead to significant non-compliance fines, as in the case of nearly a dozen major banks that were recently fined a collective $1.8 billion dollars by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). In these cases, the recordkeeping violations involved the use of unauthorized messaging apps like WhatsApp, Signal, and iMessage. But the same impact can arise from ineffective data management practices, making this an extremely important consideration for organizations that are subject to recordkeeping requirements.
The bottom line is this: by ensuring that you are using all of the most current data management best practices as part of your work with a regulatory compliance risk management consultant, you will see benefits like more accurate mandated reports with reduced risk levels arising as a very positive side effect.
There are a host of compliance software platforms and tools available to companies that are subject to regulatory oversight. But many are uninformed about the availability of such tools, while others lack the knowledge required to use these tools and platforms to their full potential. One of the benefits of using top compliance solutions companies is their ability to provide an organization with recommendations for the technology that will help them to achieve their goals in terms of regulatory compliance and in other areas of the risk management sphere.
Another benefit of using top compliance solutions companies involves their ability to provide referrals to reputable and talented risk management software developers. At iTech, risk management is among our specialties and we have partnered with a number of reputable compliance solutions providers. iTech’s developers have created innovative enterprise risk management solutions, from governance, risk, and compliance (GRC) software to more specialized platforms. Contact the iTech team today to discuss your risk management and regulatory compliance software needs.