Compliance costs are escalating

There is an adage that “compliance is a growth industry.”  And, when we look at the increasing costs across nearly every industry, this saying rings true.  Financial services feel a significant amount of compliance pain as 74% percent of firms expected the focus on managing regulatory risk to increase in the coming year, with 24% expecting a significant increase, according to a Thomson Reuters survey.  In healthcare, according to an American Hospital Association (AHA) report, “Health Systems, Hospitals, and Post-Acute Care providers,” hospitals and hospital systems, must meet 341 healthcare compliance requirements as of March 2017. The number of healthcare regulations balloons to 629 if a hospital also has beds focused on post-acute care — that’s an additional 288 compliance requirements.  Furthermore, as it relates to the new General Data Protection Regulation (GDPR), one in ten C-level executives state that GDPR will cost them over $1 million and 24% estimate that GDPR costs will range between $100,000 to $1 million.    

Common compliance cost categories

Compliance costs (local, national, federal, and international) commonly come in the following forms:

  • Compliance and legal salaries
  • Systems required to meet compliance
  • Monetary fines and settlements for failing to meet a regulation
  • Productivity losses
  • Costs of communicating with regulators
  • Costs of interpreting and implementing policies for new regulations
  • Costs of monitoring compliance with regulations
  • Audits

Non-compliance costs are even greater

It is estimated that it is 2.71 times costlier for an organization to not comply with regulations.  With non-compliance, the costs come later and in the form of:

  • Fines and settlements
  • Regulatory scrutiny
  • Business disruptions
  • Productivity and revenue loss  
  • Reputational damage

New compliance costs are also emerging

Companies that maintain operations in foreign jurisdictions also face much higher compliance costs and potential penalties than those operating solely in one location.  There has also been an increase in personal liability placed on compliance professionals, with that trend expected to continue.  Lastly, reputational damage costs by virtue of the 24-hour news cycle and social media are higher than ever.    

Compliance impacts us all

Organizations and companies of all shapes and sizes are subject to some form of regulation and compliance.  At a high level, here are some of the more prominent federal regulations:

  • Data Privacy, Confidentiality and GDPR
  • Human Resources (Fair Labor, FMLA, Federal Civil Rights, Retirement and Entitlements)
  • IRS
  • FINRA, SEC and State Regulations
  • SOX – Public Companies
  • HIPPA, HITECH, HHS Data Integrity
  • Pharmaceuticals – DSCSA, FDA Data Integrity
  • Anti-Money Laundering (AML) and Know Your Client (KYC)

Why Companies Trust ULedger for Regulatory Compliance  

  • Audits and regulatory responses will become more streamlined and efficient
  • Quality and accuracy of information will be significantly improved
  • Regulators, auditors, and stakeholders will have greater confidence in your information
  • 3rd Party tamper-proof audit trail of the complete life cycle of data
  • Capture of all data activity (author of content creation, time & date, device, edits, transfers)
  • Adds certainty, proof, integrity and the relative order of events to data
  • Defend Legal challenges and improve discovery
  • Seamless integration via REST-ful API standards
  • Captures any file type and file size, including email
  • Evidence of regulatory compliance will be significantly improved, making your data defendable

One of the most effective ways to demonstrate and support your compliance processes is to underpin your entire enterprise with a 3rd party tamper-proof audit trail adding proof, integrity, and compliance to information.   With ULedger, our hybrid ledger approach ensures that underlying data remains secure and private while benefiting from a distributed and tamper-proof ledger.  This approach delivers a highly scalable solution intended for enterprise data loads and security requirements.