Essential Compliance Risk Management: 6 Key Business Laws

At OrlanTech, we understand that navigating the complex world of compliance risk management can feel like walking a tightrope without a safety net. The consequences of missteps can be severe, ranging from hefty fines to reputational damage. That’s why we’re here to help you unravel the intricacies of compliance and set up the right kind of infrastructure to support your compliance efforts. 

In this blog post, we shed light on six key business laws that are essential to your journey in staying compliant and thriving in today’s business landscape.

1. Compliance Risk Management: The Sarbanes-Oxley Act (SOX)

Often referred to as SOX, the Sarbanes-Oxley Act was enacted in response to corporate accounting scandals like Enron and WorldCom. It’s designed to enhance corporate governance and protect investors. 

For businesses, compliance with SOX involves establishing robust internal controls, accurate financial reporting and independent audits. Failure to comply can result in substantial fines and even imprisonment.

To ensure compliance with SOX, businesses should conduct regular internal audits, maintain accurate financial records and encourage a culture of transparency and accountability within the organization.

2. The Health Insurance Portability and Accountability Act (HIPAA)

If your business deals with protected health information (PHI), HIPAA compliance is non-negotiable. HIPAA safeguards the privacy and security of individuals’ medical information. Violating HIPAA regulations can lead to severe financial penalties and legal actions.

To stay compliant with HIPAA, businesses must implement stringent security measures, protect electronic PHI and provide training for employees handling PHI. Regular risk assessments and audits are also crucial components of HIPAA compliance.

3. The General Data Protection Regulation (GDPR)

Even if your business operates outside the European Union (EU), GDPR can still impact you. This regulation governs the handling of personal data of EU citizens. Noncompliance can result in hefty fines.

To adhere to GDPR, businesses need to understand their data processing activities, obtain clear consent for data collection and ensure robust data protection measures. Appointing a data protection officer (DPO) and conducting data protection impact assessments are also essential steps in GDPR compliance.

Do you know if your company’s cloud is secure? Consider looking into a cloud service provider for a fresh perspective.

4. The Foreign Corrupt Practices Act (FCPA)

In an increasingly globalized world, the FCPA is a critical law to consider. It prohibits bribing foreign officials and requires accurate financial record-keeping. Noncompliance with FCPA can lead to substantial fines and reputational damage.

To comply with the FCPA, businesses should establish anti-bribery policies, conduct thorough due diligence on third-party partners and provide regular anti-corruption training to employees and associates.

And speaking of training, cybersecurity awareness training is a must if you want to further secure your business from outside cyberattacks. 

5. The Payment Card Industry Data Security Standard (PCI DSS)

If your business handles credit card payments, PCI DSS compliance is a must. This standard aims to protect cardholder data from breaches. Not complying with these regulations can lead to fines and the loss of card processing privileges.

To achieve PCI DSS compliance, businesses should secure cardholder data, regularly update security measures and conduct vulnerability assessments. Compliance is an ongoing process, requiring continuous vigilance.

6. The Dodd-Frank Wall Street Reform and Consumer Protection Act

Dodd-Frank was enacted in the aftermath of the 2008 financial crisis to promote financial stability and protect consumers. It introduces regulations for financial institutions and requires transparency in financial markets. Failure to comply can result in financial penalties and legal actions.

Businesses should stay informed about changes in financial regulations, establish internal controls to prevent fraudulent activities and provide consumer protection measures when offering financial products or services.

Compliance Risk Management: Next Steps

Compliance risk management is not an option; it’s a necessity for businesses of all sizes and industries. These six key business laws represent just the tip of the iceberg. Staying compliant requires a deep understanding of the regulatory landscape and a proactive approach to risk management.

At OrlanTech, we’re not just here to inform you about compliance risk; we’re here to partner with you on your compliance journey. Our expert team can help you navigate these laws and create a customized compliance strategy tailored to your specific needs.

Whether you’re a small startup or a large corporation, we have the expertise to help you thrive in a compliant manner. Don’t let managing your compliance risk keep you up at night. Contact us or book a meeting to discuss your compliance needs.