7 Risks to Organizational Compliance

Upholding compliance requires an organization-wide effort. In today’s digital landscape, there is no short supply of risks that organizations must be aware of in order to maintain compliance and avoid potential penalties or breaches. To help build awareness and mitigate harm, let’s explore the 7 common risks that hinder compliance efforts.

Event Reporting 

One of the main challenges in reporting cyber events is the lack of clear and standardized guidelines for reporting, which can result in inconsistent or incomplete information being shared. There may be a lack of understanding or awareness about the importance of reporting cyber events, particularly among smaller organizations or those with limited resources. This can result in a lack of prioritization for incident reporting and a failure to implement proper incident response and mitigation measures.

The Evolving Threat Landscape

New technologies and changing regulations make it increasingly difficult for organizations to minimize risk and maintain compliance. Every day, consumers share sensitive information, employees access company data, and bad actors create new exploits to target businesses. Organizations must be proactive in developing security operations as well as incident response processes to mitigate risk when an inevitable breach occurs.

Lack of Resources

Without adequate resources and support, it becomes increasingly difficult to keep up with ever-changing regulations and requirements. This can lead to gaps in compliance and potential violations, which can result in costly fines and damage to the company’s reputation. Under-resourced compliance teams may not have access to the necessary tools and technology to effectively track and monitor regulatory or contractual obligations, making it even more challenging to stay on top of risks and potential exposures.

Lack of Automation

For organizations that rely on manual methods such as spreadsheets or shared files, the risks of non-compliance compound through inefficiency and the potential for human error. Investing in automated compliance solutions can help streamline processes and ensure timely and accurate compliance. With solutions that simplify risk quantification and obligation decision-making, organizations can eliminate inconsistencies, reduce the burden on their employees, and free up valuable resources to focus on key business objectives. 

Compliance Costs

Besides reputational costs and penalties for non-compliance, budget constraints are one of the most significant challenges to organizational compliance. By viewing compliance as a departmental problem rather than an organizational need, many businesses create a limited runway for cost prevention and end up spending more to recover from risk exposure rather than preventing it. By taking a holistic view of organizational risk, organizations can properly allocate resources to processes that benefit the entire company.

Limited Controls 

In collaborative organizations, access controls can make or break compliance efforts. By consolidating compliance perspectives into a single source of truth, organizations can efficiently and effectively mitigate risk and prevent risks from slipping through the cracks.

Insufficient Awareness

In light of record data breaches and attention-grabbing cyber attacks, the most organizational risk is the result of human error. To manage this risk, organizations must invest in a comprehensive compliance program that includes ongoing training and assessment opportunities. This will not only help mitigate risks but also save time and resources in the long run. Ignoring the importance of employee awareness and understanding of compliance can result in severe consequences for businesses, including legal penalties and reputational damage.