Alexandra Levits Water Cooler Wisdom Why Compliance is Relevant for Everyone

Alexandra Levit's Water Cooler Wisdom Why Compliance is Relevant for Everyone Regulatory compliance is the act of adhering to laws, regulations, standardsor guidelines relevant to a particular business. High-profile examples of such laws are theHealth Insurance Portability and Accountability Act (HIPAA)and theSarbanes-Oxley Act (SOX). Since violations of regulations often result in legal action or fines, many organizations have responded to these lawsby hiring regulatory compliance officers to manage the process. Smaller businesses may not have this option, butits important for owners to fully comprehend the role that regulatory compliance plays in their organizations. According to Russell Kommer, CEO of Microsoft support services firmeSoftware Associates,this is true even if a company is not in a traditionally regulated industry. “Not understanding how regulatory compliance and its applications could cause eitherlong-or short-term issues with the potential to derail your business, he says. Michael Fellows, CEO of software development firmBroadway Lab,offers an example. “Acquiringcustomertrustshould be every businesss main focus, he says. “Regulations are there to protect the customer in many cases. A failure to comply can result in financial loss due to legal repercussions like fines, but also from customers choosing more trustworthy alternatives. Creating Your Regulatory Compliance Strategy Regulatory compliance strategiesshould include: how your organization will address relevant standards from an operational perspective; how you will establish or modify corresponding processes; and how effective risk mitigation and overall compliance success will bemeasured For more where this came from, check out the AMEX OPENForum.