Outlined below are several reasons why you should prioritize regulatory compliance while establishing infrastructure and designing corporate standards for your assets and data:
1. Safeguard financial security: In the event of a data breach, your organization may face substantial fines, potentially amounting to millions of dollars. As evidenced billions in fines paid by banks for non-compliance in 2020, adhering to regulatory standards is crucial to protect your financial security.
2. Avoid lawsuits: A data breach exposes your organization to the risk of lawsuits, which can result in significant financial losses. These lawsuits have the potential to cost your business millions of dollars, making regulatory compliance essential in mitigating such risks.
3. Maintain business continuity: Numerous regulations are designed to assist businesses in navigating through catastrophic events. Without adhering to these regulations, a single major incident could lead to fines, downtime, and lost sales. Therefore, prioritizing regulatory compliance is vital for ensuring the continuity of your business operations
4. Protect brand reputation: Losing the trust of your customers can have detrimental effects on your business. It may result in a decline in subscriptions or a decrease in sales. By complying with regulations, you can safeguard your brand reputation and maintain the loyalty of your customer base.
5. Defend against data theft and cyber-attack: Regulations play a crucial role in safeguarding your sensitive data from various threats, including threat actors, malware, misuse, and insider threats. By adhering to these regulations, you can effectively defend against data theft and cyber-attacks, ensuring the security of your digital assets and data.
Regulations can vary greatly depending on the industry and jurisdiction. For large organizations operating globally, it is crucial to adhere to relevant laws and regulations in all the countries they operate in. Industries such as financial services, information technology (IT), and healthcare face a multitude of complex regulations and compliance frameworks due to their impact on the economy, business, and health infrastructure. Moreover, these industries are particularly vulnerable to cyber breaches due to the ever-evolving nature of cyber-attacks.
As a business expands, the number and complexity of regulations it must comply with also increase. This is often due to overlapping jurisdictions of multiple authorities. To ensure compliance, organizations must implement appropriate measures, policies, and processes.
In conclusion, prioritizing regulatory compliance is essential for businesses as it not only helps in avoiding penalties but also promotes financial stability, business continuity, brand reputation, and protection against data breaches and cyber-attacks