Following government regulations concerning internet-based businesses will solidify your relationship with your prospective and existing clients. It also helps build your reputation as an ethical and trustworthy business. According to Globalscape, non-compliance costs businesses on average $4,005,116 in revenue loss. Violation of such standard rules often results in federal fines, lawsuits, and social media backlash. Below is the importance of regulatory compliance for your business.
What is regulatory compliance?
It is having a consistent standard of adherence to industry-specific regulations, laws established by government agencies, regulations established by a certifying entity, and the guidelines as well as best practices for your industry. However, these regulations vary depending on your industry. These regulations do not only apply to your business. Any partners, business associates, or other third parties with access to secured data must be equally compliant.
How can your business benefit from compliance?
Compliance increases levels of trust among your clients and authorities. This includes everything from revenues to hiring costs to marketing costs. With the help of a reliable website archiving service provider, you can avail all the necessary information to the authorities and customers, which adds some level of credibility. Compliance also promotes the continued meeting of qualifications. If your business is certified by an organization, you want to maintain that certification. Such might also apply to meeting qualifications to receive perks and unlocking better products and services. In addition, a compliant business is a business that is more confident in the data they choose and manage since they have systems in place to ensure its integrity and trustworthiness. Better data means you can deliver the right customer experience more confidently.
Consequences of non-compliance
A major repercussion of non-compliance for businesses is being fined. One of the largest fines for non-compliance, perhaps the second largest General Data Protection Regulation (GDPR) fine ever imposed as of 2020, was H&M, as reported by BBC . On October 5th, 2020, the Data Protection Agency of Hamburg, Germany fined H&M €35,258,707.95. The clothing giant clothing retailer’s GDPR violations involved the “monitoring of several hundred employees.” The company accepted full responsibility and planned to compensate the employees.
To maintain online compliance and avoid putting your business at risk, your organization needs to comprehend the ever-changing regulatory environment and monitor changes closely. Your business must also adapt to such changes. In addition, any business partners you entrust with client data need to update their protocols, training, and technologies accordingly.
Website archiving service helps preserve information with personal relevance granting relevant authorities and individuals the possibility of accessing your online activity’s history. Online compliance increases the level of trust between you and your audience. Most importantly, it helps you avoid the consequences of non-compliance often enforced by certain regulatory authorities.