Adhering to compliance needs will save you from a lot of trouble as against poor data compliance. As per the research carried by the Ponemon Institute and a leading secured managed file transfer solution Provider Company named ‘Global scape,’ there is an enormous cost involved due to your negligence of poor data compliance.
Irrespective of which industry you are operating in, data compliance is important, and as you expand your horizons globally, the cost of compliance also increases proportionately. The more new markets you tap more would reduce your compliance cost.
What Is Known As The Cost Of Compliance?
In simple words, all that cost that is incurred for running the business with the necessary regulations and norms are covered under compliance cost.
The cost of compliance is also accrued by global regulations apart from the local or national industrial regulations. Thus, when the company starts venturing into different areas internationally, the cost of compliance starts increasing as per the international regulations.
All the businesses incur heavy cost of compliance for data security. However, a real reason for incurring this expense in most of the cases is to follow law and regulations and to secure the data.
Once you start diversifying into global markets, you would need professional help to reduce the cost incurred on data compliance. The risk of any penalties may arise due to poor data compliance.
Therefore, today many companies look to outsource compliance jobs to a third party, thereby curtailing their overall expenses.
What Is A Poor Data Compliance Cost?
All the costs incurred from the settlement of fines, disruptions in the business, or loss of revenue are included in the cost of poor data compliance. In addition, this cost is increasing year after year. As per a study, there has been around 45 percent rise in the cost related to poor data compliance from the year 2011 amounting to a whopping 14 million dollars on average. There are more serious issues due to an increase in poor data compliance costs.
Moreover, this main issue for rising poor data compliance costs is interruptions in the business rather than the penalties or fines. These businesses have to change themselves and get compliance-ready.
Even other areas of the business need to get ready for compliance; they have to undergo certain steps. Due to the sensitivity of personal and proprietary data, the regulations become complex, giving rise to other threats related to data compliance.