In a recent LinkedIn post, Francisco Gaffney discusses the intricate compliance landscape faced by small and medium-sized enterprises (SMEs) and mid-market companies, particularly those without dedicated compliance departments. Gaffney points out the significant burden these businesses carry, juggling numerous regulatory frameworks.
The Compliance Conundrum for SMEs
Francisco Gaffney highlights that for SMEs and mid-market firms, compliance is not a simple task. These companies often lack the specialized teams or personnel to manage the complex web of regulations. Gaffney elaborates on this challenge, noting that UK companies, for instance, must adhere to as many as 16 different frameworks. These include critical areas such as health and safety, fleet management (DVCA), data protection (GDPR), and cybersecurity, in addition to general compliance requirements.
“Compliance becomes particularly complex for SMEs and mid-market companies lacking dedicated compliance teams or personnel. It’s just one of 16 frameworks required for UK companies, alongside health & safety, DVCA for fleet management, GDPR, and cybersecurity.”
This multifaceted regulatory environment, as explained by Gaffney, necessitates a strategic approach to compliance management.
Outsourcing Compliance: A Growing Trend and Its Pitfalls
Gaffney references a recent PwC report indicating that a substantial 73% of UK companies opt to outsource their compliance functions. This trend underscores the perceived difficulty and resource intensity of managing compliance in-house. However, Francisco Gaffney argues that simply outsourcing without a clear understanding of requirements can lead to inefficiencies and unnecessary costs.
“It highlights the need for every company to establish a compliance baseline—understanding requirements to hire and manage external support effectively. Knowledge empowers control and prevents overspending on unnecessary services.”
According to Gaffney, establishing a foundational understanding of compliance needs is crucial. This baseline knowledge empowers businesses to effectively select and manage external consultants or advisors, ensuring they receive the right services without incurring excessive expenses for solutions they don’t truly need.
A Streamlined Approach to Compliance
Offering a potential solution, Francisco Gaffney suggests a more integrated and efficient method for managing compliance. He advocates for a centralized system that provides continuous gap analysis, offering a clear overview of completed tasks, outstanding requirements, and responsible parties for remediation before audits or assurance processes commence.
“There’s a cleaner way. All in one place. Continuous gap analysis. Clear view of what’s done, what’s missing, and who owns the fix before assurance or audit.”
Gaffney emphasizes the value of a systematic and proper approach, stating, “Do it once. Do it properly. Move on.” This philosophy suggests that by tackling compliance comprehensively and correctly the first time, businesses can free up resources and attention to focus on core operations and growth, rather than being perpetually mired in regulatory complexities.
Francisco Gaffney’s insights, shared on LinkedIn, provide a valuable perspective for SMEs navigating the often-daunting world of regulatory compliance, advocating for informed decision-making and streamlined processes.
📝 About This Content
This article is based on insights shared by Francisco Gaffney on LinkedIn.
📅 Originally posted on November 12, 2025 | View original post on LinkedIn →