What is compliance and why is it so important?

Taking measures to meet legal obligations is extremely important. However, customers are often not satisfied with customer service or the quality of the products. Not making your customers happy isn't prohibited, but it can make the difference between growth, stagnation, or bankruptcy for businesses. When companies go beyond meeting their minimum requirements, customers feel it and this brings additional benefits for the company. Because if companies understand the reasons behind the various rules, laws and regulations, they can use this to their advantage.

What is compliance and why is it so important

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What are the compliance requirements?

In the business sense, compliance refers to a company that does its business legal obligations often to protect the health, safety and well-being of others. Simple examples of compliance are obtaining a business license in a city and paying taxes. The importance of compliance is becoming increasingly significant as companies grow. Companies have expanded responsibilities related to their employees, which include hiring, layoffs, security, wages, payslips, and benefits. The way a product is made and sold may be subject to certain guidelines. In the course of digitization, data protection became more and more important, and so laws like the GDPR were created to ensure that companies meet all data protection requirements. This seems to be a special challenge for many. But why is that?

Security risks and data protection

Many people seem to think that cyber security is something that only big companies like banks or huge technology companies really need (or can afford). However, cyber attacks are not just a problem for large companies. Ten percent For example, all German companies have already been victims of cyber attacks. Two thirds of all cyber attacks were aimed at small businesses. And these numbers are based only on the reported cases. Some attacks are often not even noticed. However, to prevent this, companies can follow a few simple steps to easily comply with compliance and other legal requirements.

Security risks and data protection

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It is important to train your employees so that they do not fall for tricks like a phishing campaign. It is important to know that you should never click on links that look suspicious. It is also essential to report these emails. Companies should also introduce policies that help them meet compliance requirements. For example, each employee should only be given the most necessary access rights to sharepoint files and access to the company network should be restricted. Since this can be relatively confusing, depending on the size of a company, there are now increasing numbers of tools such as the Access Rights Manager from SolarWinds that help with this Sharepoint permissions manage and monitor at the same time. In this way, suspicious activities can be detected immediately and reacted to security risks. The tool can also provide proof of compliance. Another point that companies should keep in mind when it comes to data protection is that security risks arise when employees use the Internet - whether privately or professionally. Here, too, companies should sensitize their employees.

Compliance and other legal regulations can be a challenge for many companies. However, this does not have to be the case, as the risk of a cyber attack can be reduced considerably with just a few steps, and regulations for proving compliance and compliance with data protection guidelines can be provided.