The Risks of Outdated Regulatory Software

Regulatory agencies depend on high-quality regulatory software and reliable vendors to perform their duties efficiently. Choosing the wrong vendor or relying on a state IT department that struggles to maintain current software often leads to operational failures and security risks.

Inadequate software may result in delayed services, inaccurate record-keeping, and increased vulnerability to cyber threats. Regulatory agencies must thoroughly evaluate vendors based on their expertise, track record and ability to provide ongoing support to avoid costly system failures and data breaches. Additionally, investing in scalable, adaptable solutions ensures that regulatory bodies can respond effectively to evolving policies and technological advancements.

Common Problems with Outdated Regulatory Software

Regulatory agencies frequently encounter software challenges that hinder productivity and compromise sensitive data. Some of the most common issues include:

• Vendor insolvency: When vendors go out of business, their software often becomes obsolete, unstable, and vulnerable to security threats.
• Overburdened state IT departments: Many agencies rely on state IT departments that lack the resources or expertise to address software issues promptly, resulting in extended downtime and operational inefficiencies.
• Weak role-based security: Insufficient access control mechanisms expose sensitive regulatory data to unauthorized users, increasing the risk of breaches.
• Lack of browser-based access: Desktop-restricted software prevents remote work, reducing flexibility during crises or emergency situations.

The risks of outdated regulatory software pose real-world consequences. Oregon’s unemployment department provides a stark example. The department’s claims-processing system, initially developed in the 1990s with components dating back to 1985, collapsed under the weight of COVID-19-related unemployment claims, according to The Oregonian. The outdated infrastructure prevented timely processing and left thousands of claimants without necessary support.

In 2021, outdated software caused issues for Kansas’ Department of Labor (KDOL). KDOL struggled with an antiquated unemployment insurance system that was over 40 years old. The outdated infrastructure made the system highly vulnerable to fraud, leading to an estimated $600 million in fraudulent unemployment claims. Additionally, the old system lacked the capacity to efficiently process claims, causing severe delays in payments to legitimate claimants.

Both cases underscore the critical need for modern regulatory software that ensures security, efficiency and adaptability to prevent financial losses and operational failures.

Selecting the Right Regulatory Software Vendor

Choose a vendor with ample experience at meeting the unique needs of regulatory agencies. Several key features that make the right tools easy to use and prepared to meet today’s challenges with a constantly evolving regulatory landscape:

1. Browser-Based Software for Accessibility and Flexibility

Seek a software package that provides full compatibility with Chrome, Firefox and Edge. Browser-based platforms eliminate dependency on specific workstations, enabling remote access and uninterrupted operations during emergencies.

2. Robust Role-Based Security to Safeguard Sensitive Data

Effective security controls prevent unauthorized access to sensitive regulatory information. Look for a software product that enables your agency to:

• Restrict access to specific data based on user roles.
• Create and manage security groups with tailored permissions.
• Define access levels for viewing, creating, and deleting records to ensure compliance.

3. Flexible and Scalable Architecture for Future-Proofing

Your regulatory agency faces changing demands as new regulations and technology emerge. Software must accommodate these changes and future growth without requiring costly overhauls. Key flexibility features include:

• A modular design that allows for seamless feature integration.
• Cloud compatibility for enhanced storage and accessibility.
• Support for API integrations to connect with other government systems.

4. Vendor Expertise in Government Regulations

Regulatory software must align with industry standards and regulatory frameworks. Vendors with deep experience in government operations understand compliance requirements and best practices. Evaluate vendors that:

• Demonstrate a history of working with government entities.
• Offer compliance-driven solutions that meet federal and state regulations.
• Provide ongoing support, system updates, and training to keep agency staff informed and equipped.

Critical Features of Effective Regulatory Software

When evaluating software solutions, prioritize platforms offering the following key capabilities:

• Configurable Role-Based Security: Customizable access levels ensure only authorized personnel access sensitive data.
• Data Encryption and Secure Storage: Encrypted data protection mitigates cybersecurity risks.
• Scalability for Future Growth: The ability to expand functionality as agency needs evolve prevents premature obsolescence.
• Comprehensive Project Management Support: Vendors that offer implementation assistance, user training, and ongoing customer support help agencies maximize software efficiency.

Consider the following questions for making an informed decision about the right regulatory software solution for your agency.

Questions to Ask Potential Software Vendors

1. How does your software improve efficiency for regulatory agencies? Ask how the system streamlines operations, eliminates bottlenecks and reduces manual workarounds. Look for automation, workflow optimization and user-friendly features.
2. What security measures protect sensitive data? Ensure the vendor follows the latest cybersecurity standards, provides regular updates and includes encryption, access controls and audit logs. For example, using Multi-Factor Authentication (MFA) helps to prevent malicious actors from gaining access to sensitive state data.
3. How does your system adapt to changing regulations? Regulatory requirements shift—confirm that the software updates easily to maintain compliance and minimize disruptions.
4. What long-term costs should we expect? Beyond the initial investment, ask about maintenance fees, upgrades, licensing costs and any hidden expenses that impact your budget.
5. How does your platform enhance public service and user experience? Look for features that improve response times in your daily operations, ensure accessibility and provide real-time data for staff and citizens.
6. What support and training options do you offer? Reliable vendor support ensures a smooth transition and ongoing success. Ask about implementation assistance, user training and technical support availability.

The Right Software Enables Regulatory Success

Regulatory agencies face complex challenges requiring robust technological solutions. By selecting a vendor with expertise in government compliance management, browser-based accessibility and stringent security measures, your agency strengthens operational efficiency and long-term success. The right regulatory compliance software not only meets today’s complex compliance needs but also evolves alongside future demands, ensuring your agency remains prepared for the next challenge.

GL Suite is a powerful, adaptive compliance platform designed to meet today’s complex regulatory demands while evolving alongside future challenges. With robust automation, configurable workflows and data-driven insights, GL Suite ensures your regulatory agency stays ahead of compliance requirements, improving efficiency and responsiveness. Its scalable architecture allows seamless adaptation to policy changes, emerging regulations and growing operational needs, empowering agencies to remain proactive and prepared for the future.