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BIZ FAQs: What is the Purpose of Corporate Compliance?

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What does corporate compliance mean?

If you do not yet know the answer to this question, it could mean an enormous fine. For example, it seems the New York Presbyterian Hospital was also not familiar with corporate compliance. The hospital was fined $2.2 million for filming something they shouldn’t have.

If you are in business, you cannot afford to not know what corporate compliance is and what it specifically means for your business.

Read on to get a grip on this challenging subject and know how to handle it in your industry.

Corporate Compliance – Know the Basics

You do not have to be a lawyer to know that this must involve rules. As soon as you see the word compliance, you know you need to be doing something.

Corporate compliance involves the rules and regulations issued by the government or representative bodies that guide the practice of your business. It includes how your employees are treated.

It also covers basic rights that your customers have. Other areas of compliance include complex matters on how data is stored and managed. One example is GP NIST SP 800-171.  

Compliance – Prove It

The subject of corporate compliance is vast. There will be specific regulations for the industry that you work in. Some areas of compliance are somewhat central to all businesses with the addition of subject-specific areas. 

The key with compliance is not just knowing the areas that apply to your industry but being able to clearly demonstrate that your business is complying to the regulations. That is something that requires systematic management.

Call the Professionals

You will be glad to know that you do not have to manage corporate compliance on your own. There are many software programs that can help you map out your corporate compliance requirements and manage the way you gather data and evidence to prove you meet the standards.

Reap the Benefits

Corporate compliance may seem like a mountain to climb. That is especially true if you have been tasked for the first time to take a lead in your organization.

However, once you grasp the importance and the benefit of compliance and the tools available, you will see it is worth the effort.

As you develop your compliance system you will reduce the risk of a lawsuit and having to pay out significant fines. Plus, you protect your employees and customers as well. 

As you make the effort to comply with federal law, you can use this as a communication tool with your customers. You can engage and build trust with potential clients.

The bottom line is that you are helping your customers see that you genuinely care about them and their safety. 

Data security is an example of a hot topic in corporate compliance. Check out this article on cybersecurity tips.

Don’t Wait to Get Started

Like most things that are important, they take time to do well. Don’t wait to get started on your corporate compliance. In this article, you have learned the basics, so now put that knowledge to work.

You can check out other helpful web-based articles here.