Regulatory Compliance Costs Are Escalating February 5, 2010 Rick Shaw, CEO/President, Awareity

Why are compliance costs escalating?

There are many explanations, but three major reasons include:

• Over 192,000 Regulations and Climbing
• Personnel Costs
• Inefficient Compliance Tools

According to SBA Office of Advocacy, the cost per employee for meeting Federal regulations breaks down like this:

• $ 7,647 Per Employee (less than 20 employees)
• $ 5,411 Per Employee (21-499 employees)
• $ 5,282 Per Employee (greater than 500 employees)

While there are certainly more regulations every year, the number of regulations is only part of the reason for the increase in compliance costs.

Many organizations have responded to the growing number of regulations by adding personnel, rather than improving processes and tools or replacing outdated traditional compliance tools. Personnel are expensive and the organization still has to deal with processes and tools that are not efficient.

Outdated compliance management tools can cost organizations a lot of time, a lot of money, a lot of duplicated efforts, a lot of documentation costs and a lot of other challenges. Too often organizations will spend money on technology solutions that are actually monitoring compliance related data, but not improving performance and compliance management.

Lessons learned clearly show that organizations can make impressive improvements if they focus on compliance automation tools and seek out best practices that other organizations have implemented.

About Awareity

Awareity is a privately held organization founded in 2002. Awareity's innovative e-Management solutions empower organizations to 'connect the dots' and offer a unique focus on implementing lessons learned across several critical areas of business – compliance, information assurance, public safety, emergency management, enterprise risk management and reputation management.

Awareity’s solutions are helping organizations across multiple industries - education, financial, government, healthcare and other critical industries – to achieve better results by ensuring lessons learned become lessons implemented and the right information is shared with the right people in the right place at the right time with accountability and auditability at the individual-level. Awareity's solutions simplify complex challenges, reduce current and ongoing costs and improve efficiencies as obligations continue to mount and budgets and resources are limited.

Better Knowledge. Better Decisions. Better Results.
www.awareity.com