Has compliance fatigue created a bottleneck for you?

8/5/2021
evolving IT compliance landscape

The constantly evolving IT compliance landscape is challenging for many organizations. Regulators continually scrutinize organizations for noncompliance, and customers increasingly insist that their data and information remains secure.

In addition, with advances in technology leading some hardware companies to become software companies – and vice versa – and startups quickly globalizing their operations, a host of new compliance standards and regulatory demands have been introduced.

The end result? A complex, confusing environment and compliance fatigue that cause a frustrating bottleneck for organizations trying to grow with speed and agility.

Short-term solutions won’t resolve compliance fatigue

Compliance fatigue can vary by industry, but it’s often driven by new products and services that need to be aligned with current and evolving regulations, including common “big C” compliance requirements that focus on industry-specific regulations, payment card industry mandates for credit card processing, or Sarbanes-Oxley Act requirements for financial reporting. But compliance fatigue also can include “little C” compliance issues related to your control framework and how you mitigate risk.

Many organizations attempt to solve compliance fatigue by repeatedly throwing money and resources at issues as they arise, but that reactive approach can turn into a never-ending game of whack-a-mole. As soon as you solve one compliance issue, a new regulation is introduced or an existing one changes.

Instead, a proactive approach to compliance that breaks down siloed information and implements a consistent framework for managing risk can help disperse the responsibilities of compliance and risk management throughout the organization and ease the burden on any one individual or department.

continual compliance approach

You can achieve a state of continual compliance

Compliance requirements vary from business to business, but your organization can take steps to adapt to changing regulations, improve risk management, and avoid bottlenecks caused by compliance fatigue. Consider these four actions:

  1. Make technology scalable. A common control framework that includes common taxonomies, risk and control frameworks, and a standardized issue management process will build a strong foundation. But your control framework also should be able to adapt and adjust as your compliance requirements change.
  2. Develop a consistent process. Define how you review your compliance infrastructure from the top-down and bottom-up to adapt and react effectively for regulatory updates.
  3. Embrace automation. Automating controls can improve efficiency, streamline processes, and engage the appropriate stakeholders when necessary to help manage compliance requirements more holistically.
  4. Analyze the data. Make sure your workflows are collecting relevant data so the compliance team can be alerted when a compliance issue arises.

These steps can help your organization achieve a state of continual compliance, where risk and compliance requirements are met and then maintained on an ongoing basis. This approach can also reduce compliance fatigue by improving visibility, collaboration, and efficiency throughout the organization to help everyone manage risk and drive growth together.

Crowe can help you manage the IT compliance bottleneck

Compliance fatigue is a difficult challenge to resolve. We can help you design, implement, and evaluate the effectiveness of your compliance program and demonstrate how automation can be strategically used to perform critical compliance functions.

Let's talk

Want to learn how you can better support the people, processes, and structures associated with risk and compliance at your organization? Let us know. We’d love to start a conversation and figure out how we can help.
Ray-Cheung-225
Raymond Cheung
Partner