What is a Compliance Report?

A compliance report describes how successfully or poorly a company complies with security and business-related regulations. It is distributed to various audiences, including the board, senior executives, regulators, business partners, third-party vendors, etc.

Whatever compliance requirements a company may already have, a good rule of thumb is to ensure the compliance program they’ve enacted can produce compliance reports to communicate the status and maturity of its compliance.

Why Compliance Reporting Solutions Matter

Partnerships, Clients, and Third-party Expectations

Potential clients may request compliance reports. Before agreeing to do business with you, a consumer may want to learn more about your company’s cybersecurity or anti-corruption procedures. A compliance report can provide answers to these questions. (As the business landscape evolves toward high regulatory and ethical requirements, customer demands will only become more insistent.)

Regulatory Expectations

Regulatory authorities increasingly expect companies to have robust regulatory reporting tools in place. Failure to demonstrate compliance through adequate reporting can result in regulatory scrutiny, fines, and reputational damage. For example, banks must file certain reports with their industry regulators to establish compliance with liquidity risk regulations. A company that has reached an antitrust or FCPA settlement may be required to produce corporate compliance reports with the Justice Department. An inability to generate those reports could lead to consequences you’re best off avoiding.

Accountability 

Compliance tracking and reporting fosters a culture of accountability and transparency within organizations. It holds employees accountable for their actions, encourages ethical behavior, and ensures adherence to established policies and procedures.

A Compliance Report Aims to Address These Questions

• Is the organization following the regulations?
• Is the compliance program effective?
• What else can or should be done to increase compliance?

Understanding Compliance Reporting Components

At its core, compliance reporting involves documenting and disclosing information pertinent to regulatory standards and obligations. Regardless of the specific regulations applicable to your industry, compliance reports typically encompass the following components:

1. A statement about the regulation in question.

This statement provides context for the report, ensuring that readers understand the regulatory framework within which the organization operates. 

2. An explanation of the report’s scope—specifically, what the compliance officer reviewed and what he or she did not. In many cases, affirming what was not evaluated is equally crucial as stating what was.

This section delineates the parameters of the compliance review, outlining what aspects were assessed and what areas were excluded.

3. A Review of the compliance procedure itself. For example, if you’re reporting on the effectiveness of third-party due diligence, explain how the procedures are supposed to work.

A comprehensive evaluation of existing compliance processes is conducted, assessing their efficacy in meeting regulatory requirements.

4. A summary of the findings from your analysis. How well does the organization meet its declared compliance obligations?

The compliance officer provides a concise summary of findings, highlighting the effectiveness of current processes, areas for improvement, and potential risks.

5. Recommendations and action plans are proposed to address identified weaknesses and enhance overall compliance measures.

The actual content of a compliance report is largely dictated by the specific regulations applicable to the organization. However, some common elements you’ll find across compliance reports are:

• Details on adherence to regulatory standards and requirements
• Assessments of internal controls and processes
• Documentation of any breaches or non-compliance incidents
• Action plans for remediation and improvement
• Compliance performance metrics, KPIs, and benchmarks

How Do You Know Which One is Right? 

To ensure you find the perfect fit between you and a compliance solution, ask the following questions:

1. Does the software offer pre-configured reports for the industry regulations and compliance frameworks your company follows, such as SOC 2, ISO 27001, PCI DSS, HIPAA, NIST, and more? 

Having tailored reports can save time and ensure accurate compliance reporting.

2. Can you customize reports and schedule them? Is the tool flexible enough to adapt to your reporting needs? 

Customizable reporting features are crucial for tailoring reports to your requirements and ensuring they are generated and distributed on time.

3. Does the software integrate well with your existing systems? Does it sync seamlessly with HR tools for easy data collection? 

Integration with existing systems streamlines data collection processes and ensures data accuracy across platforms.

4. Is the compliance software solution easy to use and train staff on? Does it have an intuitive interface? 

User-friendly software with intuitive interfaces reduces training time and increases user adoption rates, ultimately improving overall efficiency.

5. How are system updates and new regulations handled? Is the tool frequently updated to meet changing compliance needs? 

Regular updates and alignment with evolving regulations are essential to maintaining compliance and avoiding potential penalties.

6. What are the pricing models and costs? Does it offer a one-time purchase plan, subscription, or usage-based pricing? 

Understanding the pricing structure ensures that the chosen solution aligns with your budget and provides value for money.

Now that you understand what to look for in a compliance reporting solution, you can use the following list to guide you further. 

Top 6 Compliance Reporting Software

1. Centraleyes

Learn about Centraleyes Reporting

Centraleyes offers a centralized platform that integrates risk, security, and compliance data, providing a comprehensive view of GRC processes across the enterprise. This centralized approach ensures that all relevant information is easily accessible. 

Centraleyes’ compliance automation streamlines interactions across various lines of business operations, saving time and reducing the likelihood of errors in reporting. With specialized modules addressing specific compliance needs, such as cybersecurity, internal audit, and third-party risk, Centraleyes offers a tailored solution for generating compliance reports that meet the requirements of a growing list of regulatory frameworks. Check out the framework and regulations we cover.

The regulatory reporting platform’s strengths in compliance are its good report management features, real-time assessments, and automated evidence collection for external audits. 

Generating reports with Centraleyes is simple and reliable. Centraleyes includes built-in report templates for internal and external regulatory compliance, including PCI DSS, GLBA, SOX, NERC CIP, HIPAA, and more. You can also create custom reports.

2. Diligent

Diligent’s comprehensive compliance solution assists organizations in understanding and adhering to internal protocols while facilitating seamless evaluation, monitoring, and management of third parties. By providing real-time dashboards, detailed reports, and compliance metrics, Diligent offers immediate insights into the company’s compliance posture, enhancing the effectiveness of compliance reporting. 

Diligent’s automation of monitoring processes, including ESG metrics and third-party risks, ensures compliance issues are promptly identified and addressed, reducing the risk of non-compliance. Diligent fosters a compliance culture through engagement initiatives such as dynamic compliance content and end-to-end anti-fraud programs, further improving compliance reporting efforts’ accuracy and timeliness.

3. Drata 

Drata’s comprehensive solution improves the Governance, Risk, and Compliance (GRC) journey by streamlining compliance efforts through automated continuous control monitoring and evidence collection. By providing over 85 integrations with common tools, Drata minimizes manual efforts to collect compliance evidence, ensuring compliance reports are based on up-to-date information. 

Drata’s scalability allows organizations to adapt to evolving business needs, ensuring ongoing compliance reporting effectiveness even as regulations change. With a unified source for audit documentation and risk assessments, Drata simplifies the compliance reporting process, reducing the time and resources required to gather relevant information and enhancing overall compliance reporting efficiency.

4. LogicGate

LogicGate’s Risk Cloud is a comprehensive hub for streamlining risk management operations and compliance reporting. LogicGate provides a centralized platform for generating compliance reports based on accurate and up-to-date data by integrating, automating, and quantifying various aspects of the risk program. The platform’s agility allows organizations to adapt to risk environments and regulatory requirements, ensuring ongoing compliance effectiveness. 

LogicGate’s ability to quantify risks in financial terms facilitates more informed decision-making and communication with stakeholders, enhancing the credibility and effectiveness of compliance efforts.

5. HyperProof

Hyperproof is a comprehensive compliance reporting tool that simplifies and streamlines compliance management processes. With Hyperproof, organizations can create, review, and submit compliance reports. The platform centralizes evidence collection, enabling collaborative workflows for security and report reviews. Hyperproof eliminates manual document management and streamlines workflows with features like version control, reminders, permissions management, and seamless integrations.

Organizations can track compliance activities in real time using Hyperproof’s intuitive dashboard, ensuring they stay ahead of regulatory requirements. Built-in reporting modules and centralized document management further enhance efficiency, while automated workflows and customizable modules allow for effective compliance management tailored to specific organizational needs. 

6. Auditboard

AuditBoard offers a centralized solution for audit, risk, and compliance management, enhancing visibility into security gaps and compliance status through interactive dashboards and reporting.  The platform enables automated scheduling of repeatable requests and assessments, facilitating the development of an effective compliance program. With customizable workflows, AuditBoard automates repetitive compliance tasks, while its audit-ready report generation feature ensures readiness for regulatory audits.

Key features of AuditBoard include customizable risk assessment modules, audit management capabilities, and collaboration tools for effective communication and compliance management. However, some users may find the platform’s risk management functionalities limited, and the interface may feel outdated. 

Who Requires Compliance Reports?

The need for compliance reporting spans various industries, with specific regulations mandating compliance reporting solutions for financial services and other sectors. Here are some examples:

What Makes Compliance Reporting Digestible for the Board?

Good compliance reporting tools generate reports that benefit the reader. Remember that many compliance reports are sent to senior executives or board directors. While they may grasp regulatory compliance concepts, they may not be familiar with all the jargon or technical phrases that compliance officials use internally.

A compliance report should foresee this fact and be written so readers can use it effectively. For this purpose, all compliance reports should:

• Use clear language and sentence structure
• Be concise
• Provide an executive summary
• Include action items or timelines for improvement
• Include visual aids

Highlight any required action by executives or the board, such as choices only they should make.

Is Automated Compliance Reporting Recommended?

Data collection, aggregation, and generation of standardized reports can be effectively automated. Automation also ensures consistency in reporting.

However, some parts of compliance reporting are better suited to human judgment and oversight. For example, gap analysis and strategies for improvement often requires critical thinking that automated systems don’t possess. 

Human judgment allows for considering complex factors, such as industry-specific nuances, evolving regulatory landscapes, current events, and organizational priorities, which computerized processes may not adequately capture.

Striking the right balance between automated compliance reporting solutions and human oversight ensures compliance reporting remains effective, insightful, and aligned with the organization’s strategic objectives.

Centraleyes Compliance Management

At Centraleyes, we understand that you’re not just seeking a tool to help you check off boxes on your compliance list. You’re looking for a partner who values your compliance goals and is committed to helping you navigate the complexities of compliance risks with confidence.

We understand the importance of finding the right solution to drive your compliance initiatives forward.  From streamlining your reporting processes to providing actionable insights and ongoing support, we’re dedicated to helping you achieve your compliance goals and unlock new growth opportunities.

Contact us today and discover how we can help you achieve compliance excellence and drive business success. 

Your journey starts here.

The post Top 6 Compliance Reporting Tools in 2024 appeared first on Centraleyes.

*** This is a Security Bloggers Network syndicated blog from Centraleyes authored by Naomi Scarr. Read the original post at: https://www.centraleyes.com/top-compliance-reporting-tools/