Compliance automation is the automation of compliance processes that employees had previously done manually. Compliance automation uses artificial intelligence features and technology to make compliance procedures easier.
Compliance automation technology gives organizations compliance-related workflow capabilities, such as self-assessments, control analyses, corrective action planning, and controls testing.
Initially, compliance automation tools receive a company’s security policies. The regulations that pertain to an organization’s industry, configurations, accounts, inventories, and security procedures are copied into the compliance automation software to identify violations.
An organization can change or update this database of compliance regulations and security standards at any time.
Companies that process sensitive data would especially benefit from implementing compliance automation tools.
Since regulatory requirements and laws, such as HIPAA, are often updated, automating compliance processes provides more accurate information for internal auditors and senior leadership.
Organizations looking for an effective way to implement a robust information security management system process and keep costs low should automate their GRC (governance, risk, and compliance) systems.
Regulatory technology firms provide technology that helps organizations manage their regulation processes to meet their obligations. The demand for regulatory technology is already increasing as organizations become more aware of the benefits of automated compliance technology, in part, to mitigate the risk of fines from regulatory breaches.
The worldwide COVID-19 pandemic has made it much more difficult for stakeholders to stay on top of things, causing the demand for compliance automation tools to accelerate dramatically.
Compliance automation tools enable organizations to remain compliant and therefore not subject to potential penalties and other financial consequences. The less a company’s compliance team relies on manual processes, the less exposure the company as a whole will face.
The benefits of compliance automation tools include:
- They’re more cost-effective compared to manual controls.
- Users can access and check compliance status and audit information in a single dashboard.
- Management can make risk management decisions based on real-time data.
- They continuously verify compliance requirements, manage third-party risks, and catch potential vulnerabilities.
- They reduce the likelihood of security breaches.
- They decrease the number of reporting mistakes.