The ROI of export controls and compliance software

To many, it seems like export controls and trade compliance do not inherently add value to a service or product – and they therefore regard it as a burden. After all, compliance can’t really be considered a revenue-generating portion of the company.

Those that fail to implement effective export controls and compliance programs, though, risk jeopardizing their business operations and reputations. Based on this alone, investing in compliance with export controls already makes good business sense. But there is even greater potential to be tapped: Companies that additionally introduce software into their internal compliance programs (ICP) also benefit from greater efficiency, reduced costs, and – importantly – increased regulatory compliance.

Any internal compliance program (ICP) today must be configured to cater for changing policies, legislation, technologies, and so on. It must be robust and adaptable enough to deal with uncertainty and unpredictability. You can read more about what constitutes an effective ICP in this article. 

Considering the volume, complexity, and frequent changes of regulations in export controls across the globe, it’s virtually impossible to establish successful compliance programs without IT support. Software solutions reduce reliance on manual processes and therefore support companies to:

• Decrease costs
  
• Increase efficiency
  
• Minimize errors
  
• Standardize procedures
  
• Increase regulatory compliance
  
• Improve recordkeeping and the level of information available to auditors
  

The best systems enable you to comply with all relevant regulations, mitigate supply chain risks, increase efficiency, and demonstrate due diligence to regulatory authorities. The next section details some of the key aspects that you should be looking for in an effective trade compliance solution. 

Implementing an effective export control compliance program that is robust enough to cope with current challenges and is flexible enough to facilitate future requirements is of utmost importance in protecting your business operations and reputation. This requires investment. And to get investment, business leaders typically need to present the ROI. 

But a return on this type of investment is hard to measure. A robust compliance program is perhaps more comparable to having a good insurance policy in place. No reputable business would trade without insurance for professional liability, property, and vehicles. Similarly, no reputable business should trade without taking measures to ensure efficient export controls and overall regulatory compliance. Here are four good reasons why that can support your software business case:

1. Protecting brand image

2. Avoiding penalties

3. Penalty mitigation

4. Shareholder value