Jan 16 2022
Management

Compliance Automation

Compliance automation is the process of using technology, such as artificial intelligence, for continuous system monitoring to ensure regulatory standards are adhered to. This approach replaces manual procedures and consolidates compliance tasks into a single operation.

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Why Compliance Matters

Modern businesses face a variety of strict regulatory requirements and laws with which they are required to comply. Adherence to compliance standards can business operations more efficient. Significant compliance regulations include the Health Insurance Portability and Accountability Act (HIPAA), the Family Educational Rights and Privacy Act (FERPA), and the European Union’s General Data Protection Regulation (GDPR). By automating compliance processes, organizations can streamline planning and policy implementation.

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Keys to an Effective Compliance Program

A successful compliance program encompasses several essential elements:

Testing: Prior to implementing automated processes, thorough evaluations of the system are necessary.

Policies and procedures: Clear and easily understandable policies and procedures must be in place to guide the implementation of automated tools.

Software and tools: Compliance automation software carries out manual tasks on behalf of the organization, ensuring efficient and accurate compliance management.

Regularly reviewing compliance procedures is crucial to identify areas for improvement and to enhance overall processes.

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How Does Automated Compliance Work?

Automated compliance tools function by categorizing and safeguarding specific types of data and systems, guided by applicable regulations. For instance, HIPAA regulations mandate the protection of patient health data. Compliance automation involves collecting, controlling and analyzing data at various stages of its lifecycle. Alerts are generated when analysis detects a potential compliance violation, and reports are sent to the relevant stakeholders if anomalies or deviations from historical averages are identified.

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Benefits of Compliance Process Automation

Compliance process automation offers numerous benefits, impacting security, cost savings and reporting:

Reduced risks: By automating compliance processes, the chances of noncompliance and subsequent fines are minimized. Automation eliminates human error and enables continuous monitoring, leading to improved risk mitigation and substantial cost savings.

Increased efficiency: Manual processes are prone to errors and can be time-consuming. Automation eliminates the need for human intervention in routine compliance tasks, allowing employees to focus on more strategic activities.

Real-time data visibility: Compliance automation software provides a dashboard for centralized access to compliance information. This real-time view enables organizations to assess their compliance status across different areas and promptly address issues, resulting in stronger risk management and timely corrective action.

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