To remain competitive and avoid potential legal pitfalls, it is essential for fast-growing companies to prioritize compliance activities and processes.
However, prioritizing compliance comes with its own set of challenges, a few being – an increasingly complex regulatory landscape, managing multiple jurisdictions, and balancing business growth.
In this blog, we will discuss the top compliance challenges faced by such companies and provide effective solutions to overcome them.
What are the compliance challenges fast-growing companies face?
1. Keeping up with the evolving regulatory landscape
One of the most significant compliance challenges for fast-growing companies is staying up-to-date with the ever-changing regulatory landscape. As regulations evolve, companies must adapt their practices to ensure compliance. This requires ongoing monitoring and interpretation of regulatory updates, which can be a resource-intensive task for growing organizations.
2. Scaling compliance operations with business growth
Fast-growing companies often need help to scale their compliance operations in line with their expanding business. As the organization grows, new business lines are added, increasing compliance responsibilities, such as complying with new set of regulatory requirements.
This necessitates the requirement of efficient processes to manage and track compliance activities across the entire company. Simply using manual methods can result in potential compliance gaps, creating even bigger challenges for the business.
3. Managing multiple jurisdictions and complex requirements
Expanding into new geographic regions introduces additional compliance challenges. Each jurisdiction has its own unique set of regulations and reporting requirements, making compliance management a complex and time-consuming task. For example, an organization with business in the EU must comply with GDPR, while an organization in California needs compliance with CCPA/CPRA.
4. Lack of bandwidth to manage compliance
A growing company has a lot of areas to focus on, primarily scaling operations and meeting market demands. Amidst these challenges, allocating resources to manage compliance becomes a huge challenge for fast-growing companies.
In most instances, lack of resource bandwidth, not enough knowledge about compliance management, and shaky internal infrastructure can become primary bottlenecks. Due to this, compliance tasks take a backseat, potentially exposing the company to regulatory risks and penalties.
Even companies with established security teams shift their focus on managing compliance while they should be focusing on setting up proper security measures – which eventually leads to digging an even deeper hole.
5. Managing multiple frameworks with duplicative requirements
Another challenge that fast-growing companies find themselves subjected to is multiple compliance frameworks, each with overlapping or duplicative requirements. This redundancy can create confusion and inefficiencies, as the company must allocate additional resources to address similar compliance demands across different frameworks.
How to solve these compliance challenges?
The solution to all these challenges is largely dependent on the methods an organization implements or deploys. Two of the most common methods recommended by experts in order to tackle compliance challenges are as follows.
1. Automating compliance with GRC Automation
GRC Automation tools play a crucial role in managing multiple compliance frameworks efficiently. By centralizing compliance processes and data, these tools eliminate duplication of efforts and streamline compliance activities.
With automated workflows and reporting capabilities, fast-growing companies can address duplicative requirements more effectively, reduce the risk of errors, improve efficiency, and scale their compliance operations effectively, saving time and resources.
2. Outsourcing compliance activities to a trusted Managed Service Provider (MSP)
Engaging with a trusted Managed Service Provider specialized in compliance services can help fast-growing companies overcome most compliance challenges. Trusted MSPs possess the expertise and resources to monitor regulatory changes continuously, interpret their impact, and implement necessary updates to compliance programs.
When thinking of outsourcing compliance activities to a third-party provider, a trusted MSP takes precedence because of their deep understanding of their customer’s IT environment and visibility into gaps & vulnerabilities. Their familiriazation with the cloud infrastructure helps them prioritize risk and perform regular reviews.
By partnering with a trusted MSP, companies can ensure their compliance needs are met while freeing up internal teams to concentrate on strategic initiatives and core business functions.
Moreover, outsourcing compliance operations to a global MSP with expertise in multiple jurisdictions can alleviate the burden of managing compliance across various geographic regions. Such MSPs possess a deep understanding of regional regulations, enabling them to tailor compliance programs and ensure adherence to specific jurisdictional requirements.
TenisiTech – a trusted global MSP provides Compliance-as-a-Service for fast growing organizations
Organizations can find tailored solutions to address their unique challenges by outsourcing compliance operations to a trusted Managed Service Provider (MSP) like TenisiTech. They provide Compliance-as-a-Service to help fast-growing companies develop a tcomprehensive approach to compliance management, helping them navigate the complex regulatory landscape with ease.
Thanks to Scrut’s partnership with TenisiTech, companies can now gain access to a team of compliance experts who possess deep knowledge and experience in various industries and jurisdictions. Recognizing that every business has its own set of requirements, goals, and risk appetite, TenisiTech and Scrut work closely with their clients to understand their specific needs. This collaborative approach allows for the development of compliance strategies that align seamlessly with the organization’s operations and objectives.
In conclusion, fast-growing companies face unique compliance challenges as they expand their operations and to simplify and solve these challenges, they should embrace the power of outsourcing compliance to MSPs like TenisiTech, and embark on a journey towards streamlined, tailored, and successful compliance management.
