As the year winds ever-nearer to its close, your IT team is probably starting to look closely at upcoming regulatory challenges your organization may face. Staying ahead of the regulatory curve helps your team feel confident that your organization consistently maintains compliance.
Which Industries Are Most Likely to Make Regulatory Changes?
Depending on your industry, you may have more work cut out for you than others. Each industry has its own set of regulatory concerns to which each organization must adhere, so it is important that you work with your legal department, or another regulatory specialist, to stay on top of all the changes within your specific industry.
Industries like healthcare, financial and insurance have the most existing regulations and are the most likely areas to undergo changes to protect various parties, which include patients, customers, policyholders, and investors.
Healthcare Regulation Challenges Businesses May Face
The healthcare industry is a consistently challenging and regulation-heavy industry. The array of regulations often seems overwhelming to those working in the healthcare industry since nearly every aspect of healthcare is overseen by some regulatory body — and often by more than one, or even several. Keeping up with these regulations can become dizzying for your IT team and you, so it helps to continually monitor the various bodies’ changes and new regulations so you and your team avoid surprises.
- HIPAA Concerns and New Technologies. New technologies in healthcare, such as wearable healthcare devices, continue to both gain popularity due to their usefulness and press the boundaries of patient privacy issues and HIPAA regulations. Everyone from payers, providers and patients may feel the effects of any possible data breaches when using electronic healthcare monitors, so it is essential to monitor any new regulations that HIPAA sets forth on this matter.
- Affordable Care Act (ACA). The ACA makes frequent updates that you and your IT team need to regularly monitor to stay in compliance. Since it is still relatively new, continually expanding, and features non-compliance fines, it is essential that you and your team stay on top of ACA updates throughout the year.
Financial Industry Regulations That May Keep You Busy
The financial industry continually undergoes regulatory changes that keep your IT staff and regulatory experts busy. Knowing that keeping up with the financial industry’s regular regulatory shifts does not make it any easier for you and your team to manage their updates since there is little predictability, outside of the fact that there is predictability.
There are several issues that keep the financial industry regulators busy, and here are just a few that may impact your financial institution:
- The USA Patriot Act. This regulatory act serves to strengthen U.S. efforts to monitor and prevent potential international money laundering schemes and any other efforts that serve to fund terrorism. Lack of compliance with the USA Patriot Act can result in harsh penalties, including financial fines that can soar to billions of dollars.
- Financial Industry Regulatory Authority (FINRA). This regulatory body helps detect and Ponzi schemes and other illegal practices. Non-compliance with this regulation could cost your financial institution up to $100 million in fines.
Insurance Industry Regulations to Monitor
The insurance industry is currently undergoing several regulatory changes that may affect your organization. Below are just a few of the many regulatory threats the insurance industry must tackle in the near future:
- Increased Oversight from Various Governing Bodies. It seems that more federal, state and international governing bodies want a chance to govern some aspect of your insurance business than ever before. Experts note that the impact could prove “tremendous,” due to the potential bureaucracy such oversight entails, as well as the aggressive tone already noted by regulators who want to impose their regulations.
- Principal-Based Reserving (PBR). As a result of NAIC’s Solvency Modernization Initiative (SMI), PBRs may more accurately determine capital risks life insurers assume on the policies they underwrite. If this regulation passes, experts view it favorably, but it will mean one more regulation to put on your schedule to monitor for updates.
How You and Your Team Can Best Face Upcoming Regulatory Challenges
Regardless of your industry, you, your IT team, and your whole staff can easily keep up with any regulatory challenges that may come your way. With vigilance and diligence, you can avoid fines while protecting your company, customers, patients, or any third-party stakeholders.
As long as you make compliance your key objective, regulatory challenges should not slow you down. Consider adding some of the following strategies to make sure you never miss a regulatory change so you can maintain compliance at all times:
- Educate Staff, Managers and Executives. Whether you call regulatory meetings or send out mass emails on regulatory matters, keep everyone who works on your regulatory team in the loop on changes to existing regulations, as well as any possible new regulations. Ask everyone to alert you and the rest of your regulatory team to news that they receive immediately.
- Monitor Your Competitors. Watch how they manage various regulations and adopt their best practices to stay up-to-date.
- Reach Out to Regulatory Experts. Consider hiring compliance officers, internal auditors, or engaging specialized consultants in regulatory auditing and compliance.
At I.S. Partners, LLC., our expert auditing team keeps track of regulatory changes in various industries. Whether you need help building your initial list of regulations, or if you need additional expertise to keep up in an industry brimming with changes, our team can step in to help you achieve all of your goals and stay in compliance. Call us at 215-675-1400 to learn how we can help.