Compliance management software (CMS) adoption is poised to grow on a very large and global scale. According to a 2019 forecast by MarketsandMarkets, the eGRC (Enterprise Governance, Risk Management, and Compliance) software industry will grow from $31.5 billion in 2019 to as high as $51.5 billion by 2024.
Companies and organizations are looking to address the growing need to address and comply with stricter industry standards and mandates as well as achieve a real-time holistic view of all their company policies, risk, and compliance data. The increasing instances of data and security breaches and the need to defend against them also contribute to the growing trend of compliance management system adoption and implementation.
But what does compliance software do? Simply put, it is a software solution that is designed to help any enterprise or organization to operate as efficiently and seamlessly as possible within the boundaries of specific guidelines, frameworks, standards, and existing laws.
That means every business transaction, from as trivial as browsing and deletion of internet cookies, to the complex acquisition of assets, to drafting terms and conditions of a contract to the calculation of payroll and more, must adhere to certain company standards and comply with legal and industry requirements. And how does this benefit your business? Here are some of the ways.
- Secure and Centralize Business-Critical Data
There are various types of compliance management systems that are available in the market, often with an impressive array of features and capabilities. The chief among these benefits is the seamless integration of different core processes of your business. An effective CMS functions as a centralized repository where highly critical business information is stored and can be shared or accessed securely by and amongst stakeholders.
Data silos are costly. in this modern world where access to reliable data is crucial to business growth, you need to take data silos out of the picture. A 2016 survey by F5 Networks revealed that 54% of the respondents use as many as 200 applications in their networks. That’s too many applications and too many silos. This prevents employees from seeing the big picture and working productively and efficiently.
With compliance management software, you can grant specific permissions, including selective and restrictive access, to workers. This enables you to provide members of your organization access to information intended for their position and clearance level. They are able to see and work on data they are authenticated for while ensuring the information not meant for them remains confidential and secure.
Having a centralized data repository allows you to efficiently and securely disseminate information to the right people via the proper channels. This results in a well-connected work environment. Everyone has access or is provided with the right data, making them extremely efficient and productive while eliminating confusion and misinformation that stem from data silos. Such a set up is highly beneficial in organizations with multiple departments.
- Automate the Change Management Process
Every business enterprise has to change in order to grow and become competitive. From replacing workers with better and more qualified personnel, switching equipment brands, and overhauling company policies to trying out new software, change is an inevitable part of running and managing a business. That said, without the right tools, the change management process can be quite difficult to handle.
Speaking of trying out new software, it’s always best to shop around and take a look at software solutions with free trials or positive reviews. For instance, a peek at free CAD software ranking will tell you which CAD platform should you go for in the event you want to change your current CAD software.
There is no denying that change within the business context is a complicated thing. But with an automated compliance management system, the whole process becomes easier, smoother, and faster. It enables you to update policies and business processes automatically, eliminating the need to monitor these changes manually and risk the possibility of errors occurring due to human involvement and intervention.
The automation of the change management process ensures that any and every modification made to your processes and policies as well as the integration of new ones are done correctly. Once changes have been made and fully integrated, your employees are then trained adequately to achieve maximum compliance across the entire organization, allowing your business to further steam through forward to its goals.
- Achieve and Maintain Third-Party Due Diligence
In a modern business landscape where globalization is already a reality, relationships with third-party entities and vendors are a crucial component to the growth and success of your business. You need to create and foster strong and productive ties with your suppliers, IT vendors, distributors, and customers.
Bear in mind, though, that third-party relationships can be complicated since they come with their own sets of agendas, which entail risks, including corruption, data access and security, regulatory and compliance risks, to mention a few.
Contracts, memorandums, stipulations, and terms usually contain and define the nature, extent, and limitations of these relationships. That said, tracking all the agreed terms that are written on a piece of paper can be exhausting, not to mention nearly impossible. Specialized governance, risk, and compliance management system helps you manage these relationships, including the terms and stipulations agreed by both parties. The software automatically identifies potential issues, recognizes risks and ethics violations, and mitigates these issues before they cause serious repercussions.
These innovations also accelerate end-to-end third-party due diligence processes, thus building much bigger accountability while generating significant savings in costs.
- Automate Incident Management and Reporting
Business organizations are obliged by industry standards and laws to capture, report, and monitor specific types of incidents. The use of compliance management software, on top of incident management and reporting tools, allows companies and organizations to automate reporting and other related processes.
Since incident reporting becomes more streamlined and accelerated, organizations can quickly spot incidents that can affect their business operations and interests. This allows them to immediately make necessary actions such as activating specific protocols to address specific types of incidents and resolve them within a standard timeframe to lessen their impact and avoid penalties due to irregularities and misconduct.
- Improve Task Performance
A good compliance management platform comes with task management functionality that encourages collaboration while keeping every employee, activity, and project compliant with company policies, industry regulations, and standards.
With your task management tools, you can automate the creation, assigning, and monitoring of tasks. Leveraging compliance management software allows you to keep your workers and tasks in compliance, empowering them to work and collaborate at an optimum pace and meet deadlines.
By combining task management and compliance management systems, you also improve accountability as you can easily monitor each task and trace the employees assigned to them.
Critical tasks can be reassigned quickly so that deadlines are met, eliminating overdue tasks in the pipeline.
Know Your Compliance Requirements
There is no denying how compliance management systems have become crucial platforms for modern businesses and organizations, regardless of size. When utilized properly, compliance management software helps your enterprise become productive and competitive without being exposed to risks or operating outside the law or functioning without meeting industry standards.
But before you invest in a compliance management system, it is important that you take a step back and look at your existing processes and identify exactly what they are lacking and what you can do or change to change them for the better.
You can start by auditing your current processes. This will enable you to spot the most pressing compliance issues and gain actionable insight into any potential problems that will stem from these issues. When you perform the audit, it is best that you do so together with the rest of the organization, within each department. This ensures all compliance issues are identified and nothing is missed.