Regardless of their size all businesses face government risk and compliance issues. The government risk and compliance requirements are for the protection of everyone involved in business, including the consumer, the corporation, the business owner, and the shareholders.
Regardless of the size of your business or charity, the requirements for compliance are the same. As such, it can be costly and difficult for smaller business owners to remain current in their compliance with government regulated consumer and financial transaction standards.
Each of these requirements ask for something specific from the business;
- Governance is the manner in which your business observes and regulates risks.
- Risk management is the calculations made by your and your partners regarding the types of risks your business engages in and the potential outcomes of those risks.
- Compliance is the avenue your business uses to remain within the legal confines that are required of you to engage in business in your jurisdiction.
To help businesses stay educated and proactive with government risk and compliance, the GRC Institute was started in 1996. The institute’s primary objective is to provide the business community with ongoing current information to assist them in remaining compliant with the most recent technological and societal changes in compliance issues.
However, before a business can set up an automated system to be more effective with risk and compliance regulations, they must define their most immediate compliance issues. These issues can include:
- Defining the purpose for your automation
- Identifying the risk factors; including but not limited to financial, operational, IT, brand compliance, and reputation in the business community
- Streamlining your work product and reducing redundancy in completing your compliance requirements
- Finding the right software package that will eliminate duplication of reports
- Knowing your legal liabilities and plan for legal compliance
In addition, it is imperative that you identify those reports that your company must file to show legal compliance. These reports can vary depending upon the type of business you engage in. Therefore, it is extremely important that you are well educated in which of the following are required for your businesses government compliance. Some of these reports include:
- Payment Card Industry Data Security Standard (PCI DSS)
- Federal Information Security Management Act (FISMA)
- Gramm-Leach-Bliley Act (GLBA)
Each of these areas are specific to particular compliance requirements. For example, if your business takes credit cards, stores credit card data, or transmits credit card information, then you must be compliant with PCE DSS. All government systems, including contractors, are required to comply with FISMA. There are additional areas of compliance that pertain to other types of businesses, including health care. It is important that you and your business are familiar with, and in compliance with, the regulations that are specific to your business practices.
One of the best ways to make sure that your business is secure and compliant with government risk and compliance, is to be up to date on all of the legal compliance requirements for your business. In addition, it is recommended that businesses investigate all of the possible automation software available to help further accurate and regular reporting to government agencies to show ongoing compliance. By utilizing these two resources your business can stay within its required risk management needs and compliance requirements.
In the event that you find yourself in need of assistance with business automation or regulation and compliance issues, please contact the law offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to assist clients in understanding the full ramifications of any and all of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 770 780.