Understanding Compliance as a Service Through the Value Equation 

When making any purchase decision, we instinctively weigh four key factors to determine its worth. In this blog, we’ll discuss these elements and apply them to the concept of Compliance as a Service (CaaS), illustrating its value through what we call the “Value Equation.” 

Dream Outcome 

Firstly, we consider the dream outcome – the desired state or feeling we aim to achieve. In the realm of CaaS, it’s crucial to envision how our lives would improve if we no longer had to dedicate time to security compliance or governance, risk, and compliance (GRC) programs. Would it mean more time for fulfilling work, reduced stress levels, or increased family time? Maximizing this desired outcome is paramount. 

Perceived Likelihood of Success or Achievement 

Next, we assess the likelihood of achieving our desired outcome. We seek assurances – be it a guarantee or a high probability of success. Confidence in a product or service’s ability to deliver amplifies its value. After all, certainty is invaluable. 

Time Delay 

Time is of the essence. We prefer immediate gratification over prolonged waits. Whether it’s obtaining results in 30 days versus three years, minimizing the time delay enhances the perceived value of any offering. 

Effort and Sacrifice 

Lastly, we evaluate the effort and sacrifice required to attain our goal. The more arduous the journey, the less appealing the endeavor becomes. Minimizing the pain points associated with a product or service increases its perceived value. 

The Value Equation 

Bringing these factors together, we formulate the Value Equation: 

Let’s illustrate this equation with a practical example: 

Consider the goal of losing 30 pounds to fit into old jeans. One option involves a rigorous diet and exercise regimen, requiring 90 days of effort with a 50% chance of success. Contrast this with a hypothetical magic pill that guarantees a 99% success rate in just 14 days, with no lifestyle changes required. The latter option clearly holds more value due to its higher likelihood of success, shorter time frame, and minimal effort. 

Now, let’s apply this framework to security compliance programs: 

Option 1: Hiring a compliance manager and team entails significant upfront effort, ongoing involvement, and a lengthy setup period. While it reduces compliance responsibilities by 75%, the effort-to-value ratio may not be optimal. 

Option 2: Outsourcing compliance to a partner company minimizes upfront effort and time, with a 95% reduction in compliance workload. With streamlined processes and minimal ongoing involvement, this option maximizes value. 

When evaluating compliance solutions, understanding the interplay between dream outcomes, likelihood of success, time considerations, and effort is essential. By applying the Value Equation, we can identify the most valuable path forward, ensuring optimal outcomes with minimal hassle.

Ready to add value with risk3sixty and utilize our Compliance as a Service offering? Contact us today! We’re eager to discuss and make it a reality. 

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