Outsourcing Cannabis Compliance Management: The Pros and Cons
For cannabis businesses, compliance with ever-changing regulations can be a daunting task. Failing to comply with these regulations can result in hefty fines, loss of licenses, and even legal action. Many businesses choose to manage compliance internally or with the help of attorneys, but outsourcing compliance management can provide many benefits – especially for hard-hit markets losing margins.
In this blog, we will explore the pros and cons of outsourcing compliance management for cannabis businesses and how iComply’s packages and services can supplement or replace the costs of internal compliance or attorneys.
Pros of Outsourcing Compliance Management:
- Expertise: Compliance management companies like iComply have extensive knowledge and expertise in the ever-changing cannabis regulatory landscape. By outsourcing compliance management, businesses can tap into this knowledge and ensure they remain compliant with all regulations in a timely manner without the cost of training and development for new staff.
- Cost Savings: Building and maintaining an internal compliance team can be expensive. Outsourcing compliance management can provide cost savings as businesses do not need to invest in personnel, technology, or ongoing training.
- Scalability: Outsourced compliance management can be scaled up or down depending on the business’s needs. This means businesses can adapt to new regulations and changes in the industry more easily.
- Reduced Risk: Compliance management companies like iComply can help businesses identify and mitigate potential compliance risks before they become problems. This can help businesses avoid costly fines, license suspension, and legal action caused by expensive and reactive compliance remediation.
Cons of Outsourcing Compliance Management:
- Limited Control: Outsourcing compliance management means relinquishing some control over the compliance process. Businesses need to ensure that the compliance management company they work with is reliable and trustworthy.
- Communication: Effective communication between the business and the compliance management company is crucial for success. Failure to communicate effectively can lead to misunderstandings and mistakes.
- Cost: Although outsourcing compliance management can provide cost savings, it is not free.Businesses need to ensure they have the budget to pay for the services provided and understand their own internal costs.
iComply’s Compliance Management Packages and Services:
iComply offers compliance management packages and services designed to supplement or replace the costs of internal compliance or counsel. Our services include third-party compliance auditing, remediation reports, compliance documentation development and management, standard operating procedures, employee training manuals, inventory management, compliance training, and application assistance.
We also develop and deliver top-notch corporate compliance training aimed at cannabis facility staff to create understanding and team accountability in staying compliant with the most regulated and sophisticated marijuana markets in the US. Through certification programs like our Responsible Vendor, Responsible Manufacturing, Responsible Cultivation, and Comprehensive Compliance Training, we create a compliant workforce that helps build and maintain compliance company-wide.
Outsourcing compliance management can provide many benefits for cannabis businesses, including expertise, cost savings, scalability, and reduced risk. However, it is important to consider the potential limitations of outsourcing compliance management, including limited control and the need for effective communication. iComply’s compliance management packages and services can supplement or replace the costs of internal compliance or attorneys, providing businesses with the expertise and support they need to remain compliant with ever-changing regulations and the commoditization of cannabis causing lower margins across the industry.