What Types of Business Need Regulatory Compliance Management Software?
Regulatory compliance management is a key component of a company’s overall risk mitigation strategy. But managing an organization’s many compliance burdens can get complicated and overwhelming in very short order. This is especially true for those in the healthcare space, the financial sector and other heavily-regulated industries. Enter: regulatory compliance management software.
Virtually every company can expect to see a benefit from the use of regulatory compliance management software since virtually every company is subject to regulatory oversight of some form. But there are certain industries and business sectors that are subject to extremely stringent laws and regulations. For these organizations, the regulatory compliance management tools found within these software platforms are indispensable and mission-critical.
The Healthcare Sector and Regulatory Compliance Management Software
Aside from the financial space, the healthcare industry is subject to some of the strictest rules and regulations that exist. Regulatory oversight is nothing short of intense for organizations doing business in the healthcare space.
Perhaps the most well-known of all health-specific regulations — HIPAA — governs data handling and data retention practices for protected healthcare information (PHI). But in addition to this, there are no fewer than 629 federal regulatory requirements impacting hospitals, healthcare agencies, medical clinics and other health-related businesses — and that says nothing of state and local regulations. Merely keeping track of an organization’s regulatory burdens is a tremendous task for healthcare sector companies. Risk management ought to be a very central component of any healthcare sector business strategy. A regulatory compliance management software system is an essential tool for minimizing risk and mitigating vulnerabilities in this highly-complex regulatory landscape.
Additionally, the insurance industry commonly handles PHI which means they too are subject to HIPAA regulations. As such, this is yet another type of business that can benefit from regulatory compliance management software. In fact, insurance companies are subject to quite a bit of regulatory oversight, typically at the state level, but also at the federal level by the Federal Insurance Office (FIO.) In addition to operational impacts, individual insurance product offerings are subject to regulatory oversight as well.
Regulatory Compliance Software for Investment and Financial Sector Companies
The financial and banking sector is subject to stringent regulatory oversight for obvious reasons. Not only are these companies vulnerable to fraud, scams and theft, but there is also an inherent element of risk associated with communications and data transmissions. This leads to a complex regulatory landscape, with dozens of different laws and regulations at play. These risk management software platforms are critical for identifying applicable regulatory burdens, evaluating the company’s compliance and then tracking any measures that must be implemented in order to achieve or maintain compliance.
The regulation monitoring and alerts features that are commonly included on these software platforms are extremely useful for highly-regulated organizations since an individual could literally make it a full-time job if they were to manually monitor for regulatory updates and changes.
Regulatory compliance management software can also be useful for evaluating, tracking and maintaining compliance with state and federal laws. For example, investment firms are required to document and retain communications with clients; failure to do so would be considered a violation of recordkeeping laws. In fact, that’s a lesson that JPMorgan learned the hard way when the company reportedly allowed its employees to use WhatsApp for client communications. The conversations were not properly retained, leading to significant fines totaling $200 million.
Regulatory Compliance Software for Manufacturing Companies
Manufacturers are one example of a type of business that needs regulatory compliance management software to succeed thanks to OSHA and niche-specific organizations that regulate this sector.
Workplace safety is just one regulatory aspect affecting manufacturers and other similar business types. There are also health regulations to consider, along with environmental regulations and various state and federal laws.
The Occupational Safety and Health Administration (OSHA) is perhaps the most prominent agency and it strictly regulates factories, manufacturing plants and warehouses, among others. This is one agency with the “teeth” to compel companies to take action, but it is by no means the only one governing these businesses. The end result is a complex regulatory oversight equation that can be difficult to manage if you lack the tools found in a compliance management software system.
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Using Regulatory Compliance Management Software for Trucking, Shippers and Transport Companies
Shippers, trucking companies and other transportation companies are yet another type of business that is subject to strict regulatory oversight. Truckers are required to adhere to strict rules and regulations when it comes to driver practices, load packing techniques and transport conditions/methods. Drivers are required to meticulously document information such as travel times and load contents.
Shippers and trucking companies are also subject to OSHA regulations, in addition to transport and trucking-specific regulations. Transport companies with human passengers are subject to additional rules and regulations that do not impact companies that are moving only goods, materials and parcels. Some transport companies — such as those that move explosive or hazardous materials — are also subject to environmental and public safety-related regulations.
Tracking all of these regulations is challenging, especially when you consider the fact that data entry and documentation gets exponentially more complicated when it’s occurring on the road. Regulatory compliance management software helps to simplify matters, especially when these tools can be integrated with a company’s existing enterprise mobile app platform.
Regulatory compliance management software was once considered optional for many companies. But recent years have seen the creation of many new agencies and regulatory bodies, particularly in the realm of environmental protection and health and safety. This increase in regulatory burden has combined with social pressures — namely surrounding environmental, social and governance (ESG) issues — to create an environment that has changed the way that business leaders operate. Many are now taking a more intentional approach to risk management and mitigation. Regulatory compliance is a key component of risk management, especially when you consider the size of many fines and penalties, along with the extent of some remediation orders.
Identifying the need for regulatory compliance management software is just the first step. Finding a solution that will effectively meet your needs is another task entirely. But that is where iTech can assist with our risk management and compliance specialists. Our team is available to provide comprehensive and cost-effective risk management solutions to clients in all sectors and industries. Contact iTech today to begin the process of identifying a technology solution that will support your company’s regulatory compliance and risk management strategy.