What is Compliance Reporting and why is it so important?
Based on the industry they operate in, businesses must comply with industry standards, laws, rules, and regulations set by regulatory bodies and government agencies. Most regulations deal with the electronic storage, processing and transmission of citizen or customer data, which serves as a goldmine for cybercriminals in today’s IT landscape.
To demonstrate full compliance with these regulations, businesses need to build and maintain compliance reports so they can produce them during an audit by a regulator and also to ensure they do not violate any regulations at any given moment.
WHAT ARE COMPLIANCE REPORTS?
A compliance report is the documented evidence you must produce to prove your company is compliant with the requirements put in place by a government or regulatory agency under a particular regulation.
Compliance reports determine the compliance initiatives that have been effectively undertaken and the areas that need to be worked on to ensure full compliance. Besides being used as proof for submission to auditors, compliance reports can be utilized to make better decisions about risk management, allocation of resources and additional measures with respect to compliance.
Neither compliance nor the generation of compliance reports are one-and-done affairs.
What are the different types of compliance reports?
Compliance reports can be built in various form. Most have a pre-determined structure based on the requirements of a specific industry. Some of the most common types focus on the security of sensitive data (cybersecurity/IT), financial records, health and safety, payroll, human resources, management standards, etc.
What industries are subject to compliance reporting?
While nearly every industry is subject to compliance reporting, healthcare, education, banking, electronics, pharmaceutical, hospitality, defense and automotive, often receive elaborate mandates.
WHY COMPLIANCE REPORTING IS IMPORTANT
Compliance reporting helps you keep an eye on things that you are doing correctly and things you must improve on.
It also helps identify malicious criminal activity that could exploit any compliance risk such as the lack of cybersecurity controls. Businesses that have implemented regular compliance reporting identified compliance risks and mitigated them before an auditor or a cybercriminal (in some cases) made them pay for it.
Benefits of Effective Compliance Reporting
Conducting compliance assessments and generating compliance reports provide:
Peace of mind: Compliance reports provide concrete evidence on where your business stands with respect to compliance. It’s much better than flying blind.
Greater client assurance: A thorough compliance report instils greater confidence in your clients and potential investors about how ethical and trustworthy your business is.
Risk mitigation: A compliance report identifies risks to mitigate, eliminating issues that could catch you off guard.
Vendor quality control: Compliance reports also help you hold vendors accountable for their commitment to compliance.
SIMPLIFY THE PROCESS WITH Advantenon
We leverage toolsets that leverages a compliance automation platform which:
Streamlines data collection
Identifies and prioritizes risks
Provides remediation plans
Automatically generates required documentation
We can help you maintain and prove compliance for HIPAA, GDPR, NIST, CMMC, and Cyber Liability Insurance. Contact us for more information.