Emerging privacy and data security laws, such as GDPR and CCPA, are beginning to have an impact on a global scale. This is forcing many companies to take a close look at their IT processes and ensure they are compliant.
However, with ransomware, malware, and other cybersecurity issues to worry about, many IT departments are too busy to keep up with the latest regulations. Here’s a list of four common IT compliance mistakes that shouldn’t be overlooked, which can be extremely costly in the long run.
1. Avoid internal IT compliance audits.
Most companies have a wide menu of operational responsibilities, and on a day-to-day basis, IT compliance bug checking is probably not at the top of the list.
However, too many companies make the mistake of waiting for a regulatory audit to arrive before taking a close look at their policies and procedures. Doing so can certainly be expensive.
Instead, companies should build an internal audit on their agenda and do it routinely. This ensures that IT staff and key executives are aware of issues well in advance of any major compliance audit.
It allows you to work on potential problem areas before they become a threat to your business. By conducting routine audits, a company will be ready to anticipate observations, answer questions, and be well prepared when a professional regulator visits its company.
2. Not analyzing trading events.
Customer complaints, firing an employee, and missing documents may seem like small, stand-alone problems individually, but looking at them together helps one realize that they are all connected.
As a business owner, it’s important to analyze business events and work to connect the dots, recognizing when small events can reveal a bigger problem.
This process is similar to looking for a fire when you see smoke. It helps ensure that a business is not caught off guard by multiple issues when a regulatory officer shows up at the business door.
3. Misuse of IT compliance policy templates.
There are templates online for just about every document your business might need. For a startup, using one of these templates might seem like a huge time and money saver. However, in the long run, these templates can cause problems.
If policies and procedures are based on a template instead of being written under the guidance of a consultant (and a legal professional), your business could be setting yourself up for a host of trouble.
Custom compliance policies are crucial, especially as your business grows. Consulting an expert advisor in the creation of these policies should be mandatory.
Also, any template-based procedures or policies should be carefully examined to make sure they actually work for your business. Additionally, all company policies, custom written or not, should be regularly reviewed and updated as needs change.
4. Lack of recognition of the impact of compliance on business value.
Business owners planning to sell or acquire their business should not overlook the connection between compliance issues and business value.
While it may be forgotten during the first negotiations, any due diligence process is bound to reveal compliance issues. They can have a far-reaching impact on the valuation of your business and your ability to sell it.
Altogether, using the services of a professional IT compliance services firm can help put a business on the right track. You can ensure compliance with the latest standards, while providing peace of mind and security for your business.