Compliance costs and Bloomberg Vault
Friday, 4th February 2011
A new study from the Ponemon Institute, sponsored by Tripwire, finds that the cost of achieving regulatory compliance for an organisation averages $3.5 million. That may sound high, but the same study, which queried 46 multinational companies, found that the cost of non compliance can be three times higher. The full report can be viewed here.
Non compliance costs - that is, business disruption, loss of productivity, fines, legal fees, and lost opportunity costs - averaged $9.3 million, "meaning that those organisations that invested $3.5 million in compliance saved $5.8 million", according the Ponemon Institute. The report provides some helpful metrics in assessing categories of compliance costs, showing that the bulk of compliance cost accrues to specialised technologies and incident management. At the lower end of the scale are staff and programme certification. Makes one wonder if by spending more on certification programmes, the cost to manage incidents of non compliance would be lower.
Bloomberg is jumping on this trend; this week at the LegalTech show the company announced the launch of Bloomberg Vault, a compliance solution to integrate real-time monitoring, search analytics, and archiving of Bloomberg messaging and corporate email. According to the press release, 160 companies have already adopted the hosted solution.
Key selling points are the real-time search and analytics console for Vault, which should make incident management more efficient, as well as enabling easier management of regulatory policy changes which show no signs of slowing. The fact that Vault builds in support for all enterprise messaging formats - from corporate IMs to Bloomberg messaging to emails - is bound to be a plus for potential customers, given how much enterprise data now resides in unstructured formats throughout the corporation.
As we well know, workflow integration is a key consideration for buyers of business information solution; interesting to see the ways in which vendors of all stripes are getting the message.