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The Case for Automation: Why Compliance Professionals Must Embrace the Future

In 2024, compliance is no longer just a check-the-box function but a vital component of risk management, corporate governance, and business strategy. As companies scale and regulations become more complex, the traditional methods of managing compliance—using spreadsheets, SharePoint, and manual processes—are proving inadequate. In a recent episode of the Innovation in Compliance podcast, Travis Howerton, Co-Founder and CEO of RegScale, emphasized the importance of automation in compliance, mainly through the lens of cybersecurity, digital transformation, and the growing regulatory burden. Their conversation sheds light on why compliance professionals need to embrace automation now more than ever.

Compliance and Digital Transformation: A Necessary Partnership

Compliance is often seen as the enemy of innovation, a cost center, and a roadblock to business development. Howerton recalls a time when cyber and compliance were usually viewed as the “no” force in an organization, blocking new initiatives due to concerns over risk. But times have changed. Compliance is no longer a hindrance to business growth but an enabler, especially when integrated into a company’s digital transformation efforts.

Howerton strongly advocates for compliance professionals to rethink their approach and adopt a more proactive stance. Rather than being the department that says no, compliance can empower businesses to move faster and innovate more effectively—provided they have the right systems in place.

Automation is key to this transformation. RegScale aims to digitize regulatory requirements into code, moving away from cumbersome and static processes like filling out spreadsheets and chasing paper trails. Automation makes compliance a “free outcome” of operational excellence, enabling businesses to focus on innovation without sacrificing their risk posture.

Why Continuous Monitoring Matters

The importance of continuous compliance monitoring is evident as regulatory frameworks become increasingly complex. Regulations evolve, not just in scope but also in speed, and a one-time audit or annual review is no longer sufficient. Continuous monitoring ensures compliance is not reactive but an ongoing activity that adapts as risks emerge and regulatory requirements change.

Manual processes have problems, and Howerton was quite candid about their limitations. Relying on spreadsheets, while familiar and easy to set up, often results in outdated or incomplete data. Compliance professionals who still rely on these methods work in a reactive mode, responding to issues only after they become serious. Worse, the inefficiencies of manual tracking can lead to missed deadlines, incomplete audits, and a false sense of security.

With automation, companies can continuously monitor compliance, ensuring they meet today’s standards and are prepared for tomorrow’s changes. Automated tools also reduce the risk of human error and can flag issues in real time, allowing compliance teams to address risks before they escalate.

How Automation Enhances Cybersecurity Compliance

Automation is not simply a nice-to-have for highly regulated industries like finance, healthcare, and national security; it is essential to doing business. Compliance in these sectors is about meeting external regulatory requirements and protecting the business’s core assets—its data, infrastructure, and, ultimately, reputation.

Howerton noted that cybersecurity has become a board-level concern for organizations across industries. No matter which party is in power or how political landscapes shift, cybersecurity will continue to be a top priority for businesses. A breach can lead to massive financial losses, reputational damage, and legal liabilities. Yet, cybersecurity compliance is notoriously difficult to manage, especially when relying on manual processes.

Automated compliance solutions can integrate cybersecurity frameworks into operational processes. Instead of requiring constant manual updates and reviews, these systems can continuously monitor for threats and ensure the necessary protections are in place.

Moreover, compliance officers can shift from reactive to proactive by digitizing regulations and automating reporting. They can focus on managing actual risks rather than spending time maintaining paperwork. This approach transforms compliance from a burdensome process into a critical driver of business value.

Overcoming Resistance to Automation

Despite the clear benefits, there is still resistance to automation in many compliance departments. Howerton acknowledges that much of this resistance is cultural. The introduction of automation may threaten some professionals, especially those with legal or non-technical backgrounds who worry that it will eliminate their roles. Others may believe that their current manual systems are “good enough.”

However, as Howerton explains, the pace of regulatory change and the speed at which new risks emerge mean manual processes are no longer sustainable. “Software is eating the world,” he says, and compliance is no exception. The complexity of managing compliance in a digital world will overwhelm businesses that need to adapt.

How can compliance professionals overcome this reluctance? By reframing the conversation. Automation doesn’t eliminate jobs; it enhances them. By taking over the repetitive, time-consuming tasks that no one enjoys—like chasing down documentation or managing endless spreadsheets—automation allows compliance professionals to focus on the higher-level strategic work that truly matters: managing risk, advising the business, and ensuring long-term compliance.

The Cost of Inaction

The most compelling reason to embrace automation is the cost of inaction. Compliance breaches can be devastating, both financially and reputationally. A breach or failed audit does not simply result in fines; it can lead to a loss of trust among customers, investors, and stakeholders.

In the long term, the organizations that thrive will have seamless, scalable, and sustainable integrated compliance into their business processes. Manual processes may have worked in the past, but as we approach 2030 and beyond, they will not be enough to keep up with the pace of change.

Howerton closes the discussion with a powerful analogy: “You don’t have brakes on a car to slow down; you have brakes so you can drive fast.” Compliance allows businesses to move faster, innovate more, and confidently explore new opportunities when done right. By embedding automation into their compliance programs, companies can protect themselves from risk while driving forward into new markets and opportunities.

The Future of Compliance is Automated

As we look to the future, one thing is clear: automation is no longer optional for compliance professionals. The growing complexity of regulations, the need for real-time monitoring, and the increasing importance of cybersecurity make it only possible for companies to rely on manual processes. Continuous monitoring, powered by automation, will be the key to managing these challenges effectively.

For compliance professionals, the time to embrace automation is now. The future is coming faster than ever, and those who fail to adapt risk being left behind.

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Innovation in Compliance

Innovation in Compliance: Travis Howerton on Revolutionizing Compliance – Integrating Automation for Digital Transformation

Innovation comes in many areas and compliance professionals need to not only be ready for it but embrace it. Join Tom Fox, the Voice of Compliance, as he visits with top innovative minds, thinkers, and creators in the award-winning Innovation in Compliance podcast.

In this episode, Tom welcomes back, Travis Howerton, a co-founder of RegScale, the sponsor for this episode, to take a deep dive into automating compliance solutions for the digital transformation of compliance.

Howerton advocates for the integration of automation in compliance to keep pace with rapid technological advancements, thereby maintaining competitiveness and efficiency. Through digitizing regulations by using the latest standards and forming strategic partnerships, Howerton and RegScale are transforming traditional compliance from a manual, burdensome task into an automated, streamlined process, thereby redefining the role of compliance professionals as key contributors to secure and innovative operations.

We discuss the three pillars of cybersecurity: confidentiality, integrity, and availability. While much focus is placed on safeguarding confidentiality to protect sensitive information, the speaker highlights that integrity issues pose a significant threat, particularly in sensitive industries like healthcare and critical infrastructure. Compromised integrity can lead to dire physical consequences, making it the most concerning aspect of cybersecurity.

Key Highlights:

  • Introduction to Cybersecurity’s Three-Legged Stool
  • Focus on Confidentiality in Cybersecurity
  • The Critical Importance of Data Integrity
  • Real-World Implications of Integrity Issues
  • The Sleepless Nights of a Cybersecurity Analyst

Resources:

Travis Howerton on LinkedIn

RegScale

Tom Fox

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Travis Howerton on Automating Security & Compliance

Automation in the compliance arena is becoming increasingly ubiquitous. Yet many of the most significant innovations for automation are not found in the anti-bribery/anti-corruption space but in adjacent spaces. That message was once again driven home to me when I had the chance to sit down with Travis Howerton, Co-Founder and Chief Technology Officer (CTO) at RegScale for a podcast interview (Howerton’s interview will post on the Innovation in Compliance Podcast in August.)

What I found most interesting and indeed the most insightful for the compliance professional is that the US government is increasingly turning to automation and AI to meet its security and compliance standards. With the transition of FedRAMP from guidance to law, companies are now required to use it and meet certain cybersecurity standards to do business with the US government. NIST 853 Revision Five addresses regulatory change around privacy with GDPR and other things and includes new control families and changes to existing ones.

As the government continues to revise its standards, the need for automation is becoming increasingly important. The National Institute of Standards and Technology (NIST), a standards body within the federal government, is working with the Open Security Controls Assessment language (OSCAL) team to develop standards. NIST has interacted closely with the OSCAL team, creating an open-source repo on GitHub and building communities of interest. Additionally, NIST works with other government agencies, tool providers, and industry to develop standards.

FedRAMP provides clarity of goal for vendors and customers but is expensive and time consuming to achieve. Cybersecurity is no longer a cost center, but a requirement to do business with the US government. The Department of Defense requires companies to meet certain cybersecurity standards to do business with them. Other agencies are taking similar stances in regard to cybersecurity. Companies are now required to have a compliance program to do business with them. Cybersecurity is now seen as one of the top risks to businesses, causing legal risk, revenue loss, and embarrassment.

The government is driving the need for robust cybersecurity down the supply chain. Cyberattacks can be used for a number of nefarious reasons, including theft of IP. The government is looking to make cybersecurity a requirement in law and contracts and can cancel contracts for cause if not met. Boeing now has the clout to require companies to have a NIST certified or attested cybersecurity program.

NIST 853 Revision Five is the latest version of the government’s standards for cloud services providers. It includes new control families and changes to existing ones. It is expensive to develop a Rev Four package and the government is likely to continue to revise the standards. Third party assessment organizations will have to train up on new families and redo a lot of work to meet the new standards. Cyber hiring metrics in the US show that there is not a surplus of people to meet the increased demand for Rev Five.