Compliance Automation and its Benefits for Reporting
The best attack when it comes to risk is a strong defense. And in this situation, compliance automation is your only line of defense. Even while risks are unavoidable, a successful compliance program helps your company be ready for them, whether they come in the form of new technology, evolving rules, political unrest, or internal crisis.
According to a FINRA report, compliance practices among vendors are becoming an expectation, as 44% of firms say they are being asked for proof of compliance automation and cybersecurity as part of a request for proposal.
In a business environment where risks and laws are always changing, how can organizations determine their entire compliance posture? Through efficient and ongoing compliance reporting.
Here’s what you need to know:
What is Compliance Automation?
Compliance automation is the process of using technology to reduce as much manual, administrative work as possible involved in compliance tasks. In this approach, the needs of a wider breadth of compliance are met by a company scaling back its operations and resources in this way.
What is Compliance Reporting?
Compliance reporting is the technique of acquiring, analyzing, and then presenting information and statistics about a company’s systems to demonstrate whether such systems are in compliance with pertinent industry standards or governmental requirements.
The KPIs a compliance officer evaluates go beyond giving the compliance report or the business processes for data protection a passing or failing mark. These KPIs keep track of things like the number of systems that have access to cardholder data and the procedures used to acquire, store, transfer, and delete customer information. Moreover, a thorough description of the data protection procedures in place as well as any corrective actions that have been implemented after previous compliance audits are included in the report about those KPIs.
The Compliance Reporting System: How Does It Operate?
Depending on the specific reporting structure your firm requires you to use, the compliance process appears different.
Your compliance officer or risk management group collaborates with all pertinent stakeholders to gather proof and documentation that the company is adhering to regulations. Meetings with the IT staff to gather information on cybersecurity needs are part of this, as well as meetings with the accounting department if the audit focuses on financial compliance.
The organization submits itself for an audit by the appropriate regulatory agency once adequate evidence and documentation are acquired and any necessary action to adopt controls or remedy issues is done.
In other words, there is an expectation for you to have a mile-deep awareness of every aspect of the business and mile-wide coverage simultaneously, or you face regulatory penalties and ramifications for non-compliance.
In the beginning, smaller firms are able to handle this procedure manually, but as the organization expands, that strategy quickly unravels. Therefore, with the help of compliance automation solutions, you are able to automate the tracking of projects and results and enjoy the peace of mind that comes from having compliance obligations that are well-organized.
Benefits of Compliance Automation for Reporting
Compliance reports pinpoint areas of the business where compliance measures are successfully implemented and where more work is necessary to meet legal requirements or internal control standards. Moreover, business executives use this information to make better choices on resource allocation, risk management, and long-term strategic planning.
Additionally, organizations gain from the completion of yearly compliance reports in three crucial ways:
1. Client’s Trust and Assurance
A complete annual compliance report is equivalent to a clear medical report. By using it, your business shows clients and potential investors that its operations and controls are reliable.
Clients are expecting enterprises to be able to show proof of compliance before they sign contracts or make financial investments as the list of laws and regulations that must follow expands. 
2. Your Own Assurance
A compliance report’s most evident advantage is the assurance it gives owners and other stakeholders peace of mind. Undoubtedly, compliance is a challenging activity as many objectives appear to be changing targets. Therefore, compliance reporting offers verifiable proof that your company is abiding by laws and procedures, and it serves as the basis for any strategy to resolve non-compliance problems
3. Lower Compliance Automation Costs
Organizations identify which compliance procedures are effective and which ones need improvement with the help of regular compliance reports. By recognizing and prioritizing risks, you reduce costs by streamlining the reactions to them and demonstrating which policies work.
In conclusion, many of the most time-consuming regulatory compliance requirements, including auditing, documenting, and reporting, satisfy compliance reporting. Once you’ve established a reporting procedure, you’ll spend less time demonstrating compliance and more time keeping up with the laws that apply to you.
The corporate world is developing more quickly than ever. New regulations spark by emerging technologies, setting off a fast-moving cycle that makes adaptation challenging. How can you maintain your lead? Have a team that is up-to-date with all new regulations and trends.
Do you need data discovery and classification specialists? Contact us! We have the talent you’re looking for.
About Centurion Consulting Group
Centurion Consulting Group, LLC, a Woman-Owned Small Business headquartered in Herndon,
VA conveniently located near Washington D.C. is a national IT Services consulting firm servicing
the public and private sectors by delivering relevant solutions for our client’s complex business
and technology challenges. Our leadership team has over 40 years of combined experience,
including almost 10 years of direct business partnership, in the IT staffing, federal contracting,
and professional services industries. Centurion’s leaders have demonstrated experience over
the past three decades in partnering with over 10,000 consultants and hundreds of clients from
Fortune 100 to Inc. 5000 firms –in multiple industries including banking, education, federal,
financial, healthcare, hospitality, insurance, non-profit, state and local, technology, and
telecommunications. www.centurioncg.com.
