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Build vs Buy: Answering Compliance Management Misconceptions

A Forked Path for Compliance Management

Compliance professionals face a wealth of challenges: internal processes and trainings that need to be continuously completed, evolving regulatory updates, third-party risks, conflicts of interest, and more.

Without a compliance management program that can help teams stay proactive, organized, and efficient, it’s difficult to manage these risks holistically, and avoid penalties and fines. Having a solution in place to manage these processes is an absolute must.

When it comes to compliance management there are several roads you can take:

Build your own program in-house: This approach is often considered by IT and Procurement teams as a cost-effective option for specific business needs and processes. However, it requires significant time, resources, and expertise to develop and maintain effectively, while keeping up-to-date on stakeholder expectations. In-house solutions often struggle to keep pace with rapidly changing regulations and fraud patterns.

Use a mix of in-house processes, and smaller, purchased SaaS products: This hybrid approach combines internal, often manual processes with niche external tools. While it is usually a smaller investment up-front, the long-term challenges often outweigh the lower costs. Roadblocks to this approach include lack of centralization, inconsistent data, and lack of scalability. Many times, organizations will still need to invest in a full compliance management software solution down the line to meet requirements. 

Invest in a comprehensive compliance management software solution: This option provides a robust, customized solution that offers rapid deployment, predictability, and reduced risk. These solutions are designed with best practices in mind, can adapt quickly to new regulations, and often provide a more cost-effective method in the long run compared to building in-house.

Benefits to Investing in Compliance Management Software

Compliance management software, done right, offers automation and workflows that create scalable systems, improves efficiency, eliminates inconsistent data, and helps keep teams ahead of compliance risks

Just some of the benefits include:

  • Enhanced risk management
  • Improved efficiency
  • Reduced costs in the long run
  • Immediate risk scoring updates
  • Comprehensive reporting and audit trail capabilities

Explore our Build vs Buy Field Guide for a full explanation of the benefits of investing in a compliance management system that works for you.

Answering Common Compliance Solution Misconceptions

When determining that a dedicated SaaS compliance program is the right choice, there may be questions. Below are common misconceptions on the challenges of building your own compliance programs in-house, or using a piecemeal solution.

 

Isn’t building my own program less expensive?

The total cost of ownership for an in-house solution often exceeds initial estimates. Ongoing maintenance, updates, and security patches require significant resources. 

Oftentimes, organizations will grow beyond their programs as new risk domains emerge, more users are added, and more processes are created. Eventually, teams will need to invest in additional tools that will add to costs down the road.

 

If I design my own program, aren’t I in more control?

Developing and maintaining a truly comprehensive, effective compliance management system requires specialized knowledge in both compliance regulations and software development. Many organizations underestimate the complexity involved and lack the resources to truly implement the level of complexity needed to proactively manage risks.

With GAN Integrity, you drive your program. Our platform can be tailored to fit your organization, regardless of tech stack, region, or risk appetite. While we provide the tools, you control your program.

 

I can update in-house programs whenever I want, right? 

As compliance requirements evolve and the organization grows, in-house solutions may struggle to scale effectively, leading to increased costs and potential compliance gaps.

There is also the element of time and resources. While compliance may need an immediate change or a new risk domain added, internal IT teams may already be stretched thin with their own priorities. This can leave teams waiting weeks or months for a software update, in the meantime they may fall behind on compliance requirements due to this delay.

 

If I build the program myself, I don’t have to worry about my vendor experiencing a cyber breach?

Commercial compliance management software typically offers superior cybersecurity compared to manually built, internal programs, due to their ability to provide advanced security measures, regular updates, and specialized expertise. 

These solutions often include enterprise-grade features like robust encryption, multi-factor authentication, and compliance with stringent security standards, which are challenging and costly for most organizations to replicate in-house.

Next Steps

Our Build vs Buy Guide for Compliance Management Solutions dives into challenges, benefits, and best practices for making these types of decisions.

You can also explore our resource center which includes a variety of best practices, expert insights, and buyer’s guides for compliance topics and solutions.

You can also contact us at any time with questions.

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Hannah Tichansky

Hannah Tichansky is the Content and Social Media Manager at GAN Integrity. Hannah holds over 13 years of writing and marketing experience, with 8 years of specialization in the risk management, supply chain, and ESG industries. Hannah holds an MA from Monmouth University and a Certificate in Product Marketing from Cornell University.

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