You might be looking for a career and wondering if the compliance industry is right for you. So what is the compliance industry? This business sector ensures that organizations adhere to laws and regulations specific to their industries. Independent organizations or government agencies set these rules.
Read on to find examples of laws and regulations, how businesses can benefit, and what you need to do to carve a career in the compliance industry.
What Are the Different Types of Compliance
There are several types of compliance that organizations need to consider.
When it comes to regulatory compliance, here are some of the main regulations that businesses need to follow:
- Sarbanes-Oxley (SOX) – this is a standard business law to counter fraudulent accounting methods. It helps protect shareholders and the public.
- Federal Information Security Risk Management (FISMA) requires federal agencies to review their information security programs annually.
- Payment Card Industry Data Security Standard (PCI DSS) – dictates how businesses secure credit and debit card transactions to pr
HR compliance covers many different areas in the workplace.
- Anti-discrimination regulations related to age, disability, gender, race, and military background.
- Family and medical leave laws enable employees to take unpaid leave to look after an ill family member or new child.
- Wage laws have set requirements for age restrictions, breaks, overtime, and minimum wages.
Here are two of the most critical data compliance laws:
California Consumer Privacy Act (CCPA) is one of the most recent data compliance laws. It helps protect the consumer data of residents in California. CCPA Compliance is the US equivalent to the General Data Protection Regulation in the EU.
General Data Protection Regulation (GDPR) – protects individuals and their data in the European Union.
Health and Safety Compliance
These are the two most well-known health and safety compliance laws:
- Health Insurance Portability And Accountability Act (HIPAA) – protects the privacy of any patient data. It is vitally important that this data is secure, or businesses can face severe fines.
- Occupational Health and Safety Administration (OSHA) – this law protects the health and safety of US employees.
What Are the Benefits of Compliance?
It’s not only about staying on the right side of the regulatory landscape to avoid fines. Organizations can see tangible benefits from compliance. Here are some of the main benefits for companies.
- You can build a compliance culture in your organization to improve your business in many areas. It can help you to meet regulatory requirements and improve employee engagement.
- Compliance can help your company’s reputation. All the stakeholders in the company will be impressed with your compliance efforts. It can also help attract new clients and more business for your organization.
- You can streamline business operations across all departments. This refining of processes can help to make your business more efficient. This efficiency can lead to greater productivity and more profit.
What Skills Can Help Compliance Professionals in Their Roles?
Compliance professionals are working in a constantly changing industry. There are specific skills that compliance staff can use to help them in these roles. Here are some examples of the skills that can help you in this industry:
- Understanding complex laws and regulations and what is relevant to the organization.
- Excellent communication skills to explain the compliance requirements to different company stakeholders.
- Mental agility to adapt to changes in laws and help the compliance department make the changes with minimum fuss.
- A strategic mindset to monitor and predict changes to long-standing rules and regulations.
What Are the Challenges and Opportunities in the Compliance Industry?
The compliance industry can be complex. Like any industry, there are always challenges and opportunities. Here are a few of the challenges and opportunities to be aware of:
- Compliance jobs are on the rise. Recent statistics from Statista show that the number of compliance officers in the US has been steadily increasing since 2010. Now is the ideal time to embark on a career in compliance.
- Compliance risk needs to be part of a company’s risk management strategy. Every organization needs to stay on top of the latest regulatory requirements. Creating a compliance program is essential.
- Technology is available to support compliance departments so they can automate their internal processes. Moving from a legacy system to a more modern regulatory technology solution is necessary.
What Are Common Concentrations for Jobs in Compliance?
If you like looking at trends, you will find some common concentrations for jobs in compliance. These jobs are in three distinct categories: business law, healthcare law, and human resources law.
Business laws help to safeguard any sensitive information from threats internally and externally. These laws can also protect consumers financially and physically in many different ways.
In the US, businesses have standard compliance regulations to follow. Additionally, they must comply with federal tax law to file their taxes correctly. There are also operational regulations at the state and federal levels.
Healthcare law is strict due to potential problems with sensitive data. HIPAA is the main law in this area, and any company not adhering to its strict guidelines can face huge fines and penalties.
Healthcare providers, such as doctor’s offices and hospitals, must follow the rules and regulations for care quality, employee certification, laboratory and medical device safety, and patient experience.
Human Resources Law
Human resources law is also essential and covers many different areas of employment. It ultimately helps to regulate how employees are treated. The law can apply to how businesses hire and manage employees.
Additionally, some laws are in place to protect employees at work. Laws can range from immigration, safety rules, and union regulations. All areas that organizations need to pay attention to and act on.
How to Get Started in the Compliance Industry
Your compliance career could skyrocket like the industry. According to the US Bureau of Labor Statistics, the average annual salary of a compliance officer is $72,000.
Are you interested in working in the compliance industry? Here are some pointers to help you make the best start in the industry.
- Most of the jobs in compliance are in the public sector. Although some of these roles might not have as high a salary as one in the private sector. In their favor, you can gain better benefits and job security.
- There is no particular industry to start in, as most businesses need to have compliance. Therefore, you can cast your next further and look into different sectors to find one that suits you.
- The minimum qualifications for a compliance officer role is a Bachelor’s degree in Accounting, Business, or Finance. Also, employers are now looking for talent with Masters in Business Administration or Legal Studies.
The Future of the Compliance Industry
The compliance industry is ever evolving and consequently is set to keep growing. You will find that your skills will be in high demand for many years to come. The future of compliance certainly looks promising.
Here are some of the expected trends to keep in mind:
- Data compliance requirements will be more demanding as people continue to use newer technologies. Companies will need up-to-date systems in place to manage their data compliance obligations.
- Due diligence programs for third-party vendors are an urgent requirement. Regulators will become stricter in this area. Companies need to start ensuring their third-party compliance is correct.
- The US Department of Justice changed corporate enforcement at the end of 2021. Organizations need to make sure that they are on top of corporate compliance. A compliance program is a necessity.
The Final Words
It’s also worth remembering the impact of technology on the compliance industry. Getting to grips with the latest regtech solutions can help you refine your compliance work and take it to the next level.
If you decide to start a career in compliance, try to stay up-to-date with the latest regulatory technology (regtech). Familiarizing yourself in this area could help set you apart from other applicants in this competitive industry.