The Role Of Compliance Certifications In Tech Excellence

Forbes

12-05-2025

Guy Yehiav, a recognized industry thought leader, is the president of SmartSense, IoT solutions for the enterprise.
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In a business environment where data breaches and cyber threats are becoming increasingly common, the criticality of compliance certifications in the tech industry cannot be overstated. For forward-looking tech companies, these certifications not only validate their commitment to upholding the highest standards of governance, trust and security but also play a crucial role in risk avoidance.
Compliance certifications provide a roadmap for organizations to follow to enhance their overall security posture and demonstrate their dedication to protecting sensitive information.
When a tech company first starts out, priorities often center around innovation, securing funding and acquiring customers. Resources are scarce, and attention is focused on building the product, fighting for a right to win in target markets and maintaining cash flow.
Compliance certifications such as ISO standards or SOC 2 Type 2 certification are often viewed as distant concerns—luxuries for later stages of growth. However, at some point in the maturity of the organization, the role of compliance certifications becomes essential to scaling operations, safeguarding security, securing long-term success and demonstrating viability for potential exit opportunities.
For example, an organization reaches $100 million in valuation and is being scrutinized during an audit or through an acquisition process. Potential buyers could raise red flags about insecure components, open-source vulnerabilities or inadequate standard operating procedures (SOPs). These shortcomings can jeopardize lucrative exit opportunities, audit approvals or investment rounds.
Compliance should not be ignored in the startup maturity process. While it may not be feasible to invest heavily in certifications at the outset, taking deliberate, incremental steps sets the stage for smoother growth.
Executive leaders of technology startups should foster the adoption of simple practices to prepare for future certifications without breaking the bank. Even in the absence of formal compliance requirements, startups should audit and document processes from day one. This practice creates a foundational digital record for future audits, making compliance efforts less resource-intensive when the time comes.
Ensuring all code is reviewed with proper comments helps maintain clarity and accountability. Clean, well-documented code not only facilitates collaboration but also aligns with compliance standards. For companies relying on contract manufacturers, agreements should be transparent and traceable. Documenting supply chain practices ensures accountability and positions the company for certifications that demonstrate excellence in quality management.
Compliance certifications are not merely badges of honor to parade around. The process it takes to go through them serves critical operational and strategic functions. For example, ISO standards streamline supply chain management, manufacturing processes and financial audits. Their structured approach promotes consistency and quality, making them essential for scaling efficiently.
SOC 2 Type 2 Compliance certification goes beyond one-time evaluations. It involves a yearlong observation of systems, networks and processes to identify vulnerabilities. The insights gained during this process enable organizations to address security gaps, enhancing resilience against threats.
For companies servicing highly regulated industries, such as pharmaceuticals, having the capability to offer your solution in a generic good practice (GxP) standards environment may be necessary. While you may not directly service patients, supporting clients who do requires supporting their compliance frameworks.
For technology leaders, determining when to pursue compliance certifications often feels like navigating a chicken-and-egg dilemma. Too early, and resources may be unavailable. Too late, and the cost of remediation and lost opportunities may skyrocket. The optimal time lies at an inflection point when the organization has achieved initial traction and is poised for scale.
Boards and customers often drive the timing of compliance initiatives. While certifications require investment, they also minimize risks and open doors to new markets. Potential prospects in a highly regulated industry may demand compliance as a prerequisite for doing business.
Compliance certifications are critical to achieving excellence in the tech industry. By starting early—documenting processes, adhering to best practices and fostering a culture of accountability—companies can reduce the resource strain of compliance. As companies endeavor to scale responsibly, meeting customer expectations for security is essential. Technology leaders who take a proactive, strategic approach will navigate the complexities of compliance while positioning themselves for sustainable growth.
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