While both perspective and performance-based approaches may work well toward compliance management, the performance-based approach may provide for more innovations and greater independence for the firms.
GDPR or the General Data Protection Regulation framework has been fully implemented in the European Union. It includes guidelines related to the processing and collection of an individual’s personal information in the union as well as in the EEA (European Economic Area). Companies are required to follow the guidelines while running their business activities. The firms are also debating the issue of performance versus perspective-based compliance, and which one might be the best for them.
Compliance through Perspective Approach
For compliance, Australia, as well as the USA, has shown that they tend to have a more perspective orientation on the issue of compliance. The approach can be seen in the electrical and building codes and their implementation. Regulations are specific and exact and the regulators point out that there is an exact guideline to be followed for the protection of data, and it should not be altered or manipulated. For instance, an electrical circuit that carries a load should not go beyond a point X according to one compliance regulation, while a window should meet the dimension-related requirements according to another. The perspective approach may be the best option where mathematics is involved.
Compliance through Performance-Based Approach
The European models for compliance rest on the outcomes and the companies are free to take any path they desire to reach the desired outcomes. Companies get more leeway here and the operational burden is least. All a firm has to do is to ensure that it is acting ethically and the job is being done the right way. Still, when the data breach occurs, the company can show that compliance processes were in place. In this case, those in the drawing-room reformulate the plans.
Comparing the 2 Approaches
When the regulations are clear and bad outcomes still occur due to loopholes or errors, there may be no punishments. For instance, a company may keep the records of individual customers in paper format and regulations may be in place saying that no employee has the right to remove the records from their designated places and the premises. Still, an employee may transfer some information digitally, accidentally, or otherwise. Copying of paper and the information and data of it can also be done. Still, no regulation has been broken even when the data breach occurs.
The outcome-based approach may reflect more effectiveness. For instance, a guideline like” none of this information or data should be shared with anyone outside this team” may be followed more accurately. So while the other things might get compromised, the information will be safe eventually.
It is up to the companies to know and decide which approach they should follow. They may also alter their compliance procedures and frameworks following the circumstances they face or the situations they are exposed to. Innovations may always bring new and exciting ideas that can make compliance processes more effective and easy to implement and follow.
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