Navigating Compliance: 3 Key Trends in Industrial Manufacturing

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Fewer and fewer products need hands-on assembly as robots – like those involved in making cars, computers and more – take on increasingly advanced and complex work. The business question for industrial manufacturers has quickly shifted from “Will this work?” to “How can this become the safest, most efficient way to build products?”

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Naturally these questions have invited conversations about compliance in manufacturing, especially in these three areas:

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Increased Focus on Environmental, Social, and Governance (ESG) Compliance

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• Environmental Regulations: Industrial manufacturers are increasingly required to follow strict environmental regulations, such as cutting back on carbon emissions, handling waste properly, and saving energy. Businesses are more and more obligated to disclose their environmental footprint and show commitment to sustainability, influenced by regulations such as the European Union's Green Deal and the U.S. SEC’s proposed climate-related disclosure rules.

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• Social and Governance Factors: Practices like supply chain transparency, ethical labor practices, and anti-corruption policies are becoming increasingly popular both among the public and within the boardrooms of some of the industry’s largest competitors. People don’t want to purchase products that they believe were produced by exploiting someone else or through unlawful means

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Adoption of Advanced Compliance Technologies

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• Digital Compliance Tools: Manufacturers are using more advanced technologies such as artificial intelligence (AI), machine learning, and blockchain to improve compliance processes. These tools assist in automating the process of gathering data, monitoring compliance as it happens, and guaranteeing that regulatory standards are being met in an efficient manner.

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• Supply Chain Visibility: Manufacturers are increasingly investing in technologies to improve visibility and traceability within their supply networks as global supply chains grow more intricate. Meeting regulations like these are essential.

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Strengthening Cybersecurity Compliance

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• Protecting Operational Technology (OT): As industrial manufacturing becomes increasingly digitized, the importance of strong cybersecurity measures to protect Operational Technology (OT) has increased. Regulatory authorities are more and more implementing cybersecurity regulations in order to safeguard critical infrastructure against cyber threats. Frameworks such as the NIST Cybersecurity Framework and ISO/IEC 27001 are increasingly important for manufacturers to adhere to.

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• Data Privacy Compliance: As the Internet of Things grows ever larger, companies have to ensure compliance with data privacy regulations. Data privacy laws not only vary by country (e.g. the United States vs. GDPR in the UK), but also increasingly by region within a country (e.g. California has different compliance requirements than New York, or Georgia).

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SOC before you NIST

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There are myriad factors encouraging industrial manufacturers to adopt additional compliance controls. Before achieving certification on complex vertical-specific frameworks, manufacturers should consider adopting widespread compliance certifications like SOC 2 Type I, the completion of which aids in achieving other certifications. Think of it as a stepping stone on the way to becoming compliant with NIST’s cybersecurity framework.

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Koop’s customer assurance platform helps tech companies seamlessly navigate the complexities of business insurance, regulatory compliance, and security automation in one place.

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‍We provide a comprehensive suite of insurance coverage that includes General Liability, Technology Errors & Omissions, Cyber Liability, and Management Liability coupled with the most cost-effective SOC 2 compliance certification on the market.

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‍Ready to learn more? Visit our website at https://www.koop.ai or drop us a note at hello@koop.ai.