Kiandra Insights

Fear of Non-Compliance with Industry Standards and How Technology Leaders Can Mitigate It

Cassandra Wallace - Head of Software Engineering
by
Cassandra Wallace
Head of Software Engineering
|
December 9, 2024
Cassandra Wallace
Head of Software Engineering
December 9, 2024
Man looks concerned as he reads letter

Technology leaders embarking on custom software development projects often fear non-compliance with industry standards. This fear is well-founded, as failing to adhere to regulatory requirements can result in severe penalties, legal actions, and damage to the company's reputation. Here are 8 mitigation strategies we recommend to our clients when they embark on a software project with Kiandra.

Various industries, such as finance, healthcare, and data protection, have stringent standards that must be met to ensure data security, privacy, and overall system integrity.

1.  Legal Penalties

Non-compliance can lead to substantial fines and legal penalties. Regulatory bodies impose strict fines for violations of standards like GDPR and HIPAA which can significantly impact a company’s finances.

2.  Reputational Damage

A breach of industry standards can tarnish an organisation's reputation. Trust is critical, especially in sectors dealing with sensitive information. Non-compliance incidents can lead to loss of customer trust and business.

3.  Operational Disruptions

Ensuring compliance often requires specific operational practices. Non-compliance can disrupt business operations as companies scramble to meet regulatory demands, leading to inefficiencies and downtime.

4.  Data Security Risks

Non-compliance usually correlates with inadequate data protection measures. This increases the risk of data breaches, which can have severe consequences for both the organization and its clients.

5.  Loss of Competitive Advantage

Companies that fail to comply with industry standards may lose their competitive edge. Compliance often acts as a benchmark for quality and reliability in the market.

To mitigate the risk of non-compliance, technology leaders can adopt several strategies:

1.  Understand Regulatory Requirements

Stay informed about relevant industry standards and regulations. This involves regular training and updates on changes in compliance requirements to ensure the development team is well-versed in current standards.

2.  Incorporate Compliance from the Start

Integrate compliance considerations into the software development lifecycle (SDLC) from the beginning. This includes planning, designing, and implementing features that align with regulatory requirements.

3.  Compliance Audits and Assessments

Conduct regular compliance audits and assessments throughout the development process. These can help identify potential non-compliance issues early and allow for timely corrective actions.

4.  Engage Compliance Experts

Consult with compliance experts and legal advisors who specialise in industry regulations. Their expertise can provide valuable insights and ensure that the software meets all necessary standards.

5.  Documentation and Record-Keeping

Maintain comprehensive documentation of all compliance-related activities. This includes keeping records of design decisions, testing procedures, and audit findings to demonstrate compliance efforts if needed.

6.  Implement Security Best Practices

Adopt best practices for data security and privacy to align with regulatory requirements. This includes encryption, access controls, regular security testing, and vulnerability management.

7.  Use Compliance Tools and Frameworks

Leverage tools and frameworks designed to help with compliance. These can automate certain aspects of compliance management, making it easier to adhere to industry standards.

8.  Continuous Monitoring and Improvement

Implement continuous monitoring to ensure ongoing compliance. Regularly review and update policies, procedures, and practices to address new regulatory changes and emerging threats.

By implementing these strategies, technology leaders can significantly reduce the risk of non-compliance, ensuring their custom software development projects meet industry standards and safeguard the organisation against legal and reputational risks.

Another step you can take to ensure project success is selecting the right software development partner.

Download Kiandra’s selection criteria checklist to learn more.

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