Regulatory compliance has been the big headline you see everywhere. That’s because the average cost of non-compliance in 2017 was $5,107,206. With outsourced compliance solutions from Captain Compliance the savings are not only financial but also the time savings of not having to deal with regulators and the ability to get extra eyes from experts who can file the needed paperwork to help keep your company in compliance.
On the other hand, the average compliance consultant in the US costs between $33 and $42 per hour.
So, is avoiding regulatory compliance a good tactic?
Clearly not, so let’s look into what compliance consulting services are and how to choose the best one for your business.
What are Compliance Consulting Services?
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Compliance consulting services are services provided by professional consultants and consulting firms who assist businesses in complying with laws, regulations, and standards relevant to their industry.
These services can provide different kinds of compliance consulting:
Regulatory compliance
Compliance audits & investigations
Risk assessment & management
Due diligence and compliance
Ethics & code of conduct
Compliance program development
Why Does Your Business Need Compliance Consulting Services?
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Does every business need compliance advisory services?
Not really. This depends on several factors, including the industry, the size of the business, any changes in laws and regulations, and whether the company is looking to expand into a new market or sector or considering a merger with another company.
That said, more and more businesses are much better off with these services. Here’s why:
1. Legal Compliance
With the help of a compliance consultant, businesses can better identify their legal obligations and ensure that they’re following the laws that apply to their market and industry.
2. Regulatory Complexity
The regulatory landscape can be incredibly complex, especially in industries such as healthcare and finance. Therefore, it is important to onboard compliance consultants, which can help businesses better navigate the regulatory landscape.
3. Risk Management
One reason for avoiding compliance is not fully understanding the risk of non-compliance. These risks are often not evident, especially as the firm is focused on immediate business success.
However, with proper risk management, which is another area where compliance consultants can help, a business can significantly decrease the chance and, more importantly, the consequences of compliance violations.
4. Avoiding Penalties and Fees
The penalty for violating the HIPAA Privacy Standards that the HHS imposes can be up to $50,000 for a single violation. The fine for CCPA can also be up to $7,500. And these violations can stack.
Compliance consulting services can assist businesses in avoiding these penalties by reducing the risk of non-compliance.
5. International Compliance
With more and more businesses able to go global thanks to the Internet, they are now facing different regulatory frameworks from what they might be used to in their country.
Compliance consultants can help your company ensure it is fully compliant in different jurisdictions as you expand into new markets. For example, if your business deals with anyone in the EU, you’ll need to adjust certain operations to meet GDPR standards.
6. Industry Regulations
Speaking of expanding, the same goes for entering a new industry.
Every industry has unique and some, like healthcare and finance, very complex regulations and standards.
Again, compliance consulting services with experience and expertise in specific industries can help you better understand their regulations.
7. Protecting Business Reputation
In the long run, the cost of losing customers and reputation is far greater than any fee or penalty your business can get for a compliance violation.
Very often, this damage is irreparable.
Therefore, with the help of compliance consultants, you can create a culture of compliance in your organization that will help protect its reputation.
Best Compliance Consulting Services
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Here are the 5 best compliance consulting services you can look at, along with a short description for each:
Captain Compliance
Captain Compliance is the leader of the pack with a robust compliance consulting service. It’s a CaaS that offers compliance and GRC services in different sectors, including healthcare, banking, cybersecurity, and more.
In addition to compliance consulting services, Captain Compliance offers compliance education & training, compliance audits, monitoring, and other compliance solutions that help businesses become compliant in their industry or market.
Protiviti
Protiviti offers compliance services, auditing, and monitoring in finance, healthcare, manufacturing, tech, and other industries.
Deloitte
Deloitte is one of the widest-known consulting service company in the world with a global reputation in regulatory compliance, compliance program development, and internal auditing.
ADP SmartCompliance
ADP SmartCompliance is a compliance platform that primarily works with medium and large organizations on tax & regulatory compliance, employment verification, health compliance, etc.
Vanta
Vanta is an automated compliance platform that helps companies remain compliant through GRC, risk, and incident management.
What Do Compliance Consulting Services Do?
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Compliance consulting services, or compliance advisory services, provide valuable guidance and support for businesses in ensuring that they observe the laws and regulations relevant to their industry.
More specifically, these services provide:
Risk Assessment
Every industry has specific risks that businesses in it must keep an eye on. Outsourced compliance consultants can help identify these risks and mitigate them.
Developing Compliance Programs
Different businesses have different compliance needs. A good compliance consulting group can develop and implement a compliance program that is tailored to the specific needs of your business.
Law & Regulatory Analysis & Interpretation
The law & regulatory landscape can be incredibly complex in some industries. Compliance consultants can provide crucial analysis and interpretation services that will help your business identify its compliance requirements clearly.
Compliance Breach Investigations
The main job of compliant consultants is to prevent violations before they happen. However, they can also conduct investigations to reveal the causes of compliance breaches and work with authorities in carrying out corrective actions.
Compliance Auditing
As laws and regulations constantly evolve and change, compliance consulting services are also crucial in auditing and reviewing the current compliance program, the company might have and updating it accordingly.
Compliance Monitoring & Reporting
Services of this type provide essential monitoring & reporting mechanisms that help companies better track their regulatory requirements, including periodic assessments, report generation, or developing internal controls.
Compliance Training & Education
Training and educating employees on relevant laws, regulations, and standards is crucial for developing a compliance culture within the company and ensuring that everyone is on the same page when it comes to compliance, and these consulting services can also provide this.
What to Look for in Compliance Consulting Services?
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When looking for a compliance consulting service, you need to carefully assess your available options.
Here are a few questions to ask:
1. Does the Consulting Company Have Expertise in Your Industry?
Since the laws, regulations, and standards are different for each industry, look for consultants with knowledge and experience in your industry that have worked with companies similar to yours.
2. Can it Customize Services for the Needs of Your Business?
There are no two businesses that are exactly alike.
So, when seeking a compliance consulting firm, you need to make sure that it can tailor its services to your specific needs.
3. What is its Range of Services?
Compliance services can range from regulatory analysis, policy development, training, auditing, reporting, and so on. The best compliance individuals and firms offer a range of these services that you can use.
Depending on your budget and certain business circumstances, you may want more or only a few of these services.
4. How Well Does it Keep Up with New Technologies?
Many companies have gone through history because they were not able to keep up with the continually changing technology and innovations.
Today, compliance consultants can and should use different software and advanced tools, such as AI, machine learning, data analytics tools, learning management systems, and more.
FAQs
What Does a Compliance Consultant Do?
A compliance consultant is a professional that works with a business to ensure its compliance with applicable laws, regulations, and industry standards.
What Do Risk and Compliance Consultants Do?
Risk and compliance consultants help businesses identify and mitigate regulatory compliance risks as well as offer expertise and guidance on risk management.
How Do I Become an Independent Compliance Consultant?
The typical career path for an independent compliance consultant looks something like this:
Obtaining the right education: This is usually a bachelor’s degree in a relevant industry like finance, healthcare, law, or other.
Getting an entry-level role: Following their education, would-be compliance consultants can join organizations to hone their craft in entry-level positions, often even as interns or volunteers. This can include a compliance assistant or compliance specialist.
Developing specific skills. The beginner compliance consultant may have overall knowledge but lacks the necessary in-depth expertise in specific compliance fields like regulatory compliance, risk management, or compliance training. Therefore, at this stage, they will usually look for different compliance certificates to further their knowledge.
Getting to a senior role. It may take several years, but eventually, someone aiming to become a compliance consultant can gather enough experience and knowledge to advance to a more senior position, such as a compliance coordinator, compliance lawyer, or compliance officer.
Starting a private practice. Finally, compliance consultants can “leave the nest” after years of working for others and start their own independent consultancy practice.
How Much Does a Compliance Consultant Cost?
The average pay of a compliance consultant in the United States can vary depending on the industry, location, and experience. On average, however, it’s usually between $60,000 and $100,000 per year, according to most data salary sources.
How Much Do Compliance Consultants Make Per Hour?
On average, compliance consultants in the US make between $33 and $42 per hour.
Closing
The costs of non-compliance grow each year, and you can’t rely on luck to it.
Instead, you should look toward professional compliance consulting services such as Captain Compliance that can ensure your compliance with applicable laws and regulations.
Contact us today to ensure your compliance with applicable laws, regulations, and industry standards.