Regulatory compliance is when businesses adhere to state, federal and international regulations relevant to their operations. All companies must follow certain laws and regulations as part of their operations. For instance, it might involve observing the Occupational Safety and Health Administration (OSHA) rules to ensure a safe work environment or the Equal Employment Opportunity Commission (EEOC) regulations to ensure no workplace discrimination.
Regulatory compliance is also specific to some industries, such as the standards set for the food industry with a focus on the entire supply chain to guarantee product safety. Such regulations would be different from those in the financial services sector, which would focus on handling sensitive data and cybersecurity.
Regulatory compliance is a big deal
The business environment is constantly changing, and so are the rules of the game. As such, it is essential to be on top of things when it comes to being fully compliant with the requirements of your industry. Non-compliance could be detrimental to your business. You may be staring at financial liability or potential lawsuits. In addition, you could lose a section of your customer base by being non-compliant. For example, if you do not observe the Health Insurance Portability and Accountability Act (HIPAA) regulations, you risk losing your license as well as access to some insurance companies.
Regulatory compliance is vital in safeguarding the resources and reputation of your business.
Protect your company
It is vital to be fully compliant with the set regulations in order to be on the safe side. Therefore, your business needs to take an intentional approach to ensure that it is fully compliant.
Furthermore, as mentioned earlier, the law is constantly evolving to adapt to the changing business environment. Therefore, protecting your business means learning more about what the law says regarding compliance in your field of business.