With compliance requirements on the rise in many industry sectors, the demands on in-house compliance teams have intensified. The Dodd-Frank Wall Street Reform and Consumer Protection Act, U.S. health care reform, the Foreign Account Tax Compliance Act, and the Markets in Financial Instruments Directive II are just a few of the regulatory developments that have resulted in increased compliance responsibilities. Add to this other rules in areas such as product safety, quality, and anti-money laundering, and in-house legal teams are under a lot of pressure.
Data security is a major concern of Legal Process Outsourcing, including risks to intellectual property and sensitive company information. To protect data security when outsourcing compliance tasks, organizations should consider the following:
- Clearly define the data security requirements and expectations for the security environment with the outsourcing vendor
- Assess the provider’s IT security and business continuity capabilities and plans
- Require that the provider maintain a client-specific security and control environment
- Specify the tools and techniques that can be employed to achieve data security
- Define the frequency and types of provider audits the company may conduct
- Place a high priority on data security in service contracts and service-level agreements
With careful planning, strong service-level agreements, and supervision, compliance outsourcing can be advantageous to many companies over-burdened with regulatory compliance obligations. Onestopmsp continues to monitor the adjustments to the major legislation acts and take the proper actions necessary to keep your organization in regulatory compliance.