IT compliance is a top priority for companies that rely on technology to provide services to their customers. Failure to follow IT compliance rules can cost your firm millions of dollars – or even put you out of business.
While many regulations are necessary, they often provide recommended practices for information security that can help your firm in ways that go beyond the mandates. Today, we’ll go over what IT compliance is, why it’s important, and what regulations your company may be subject to.
The majority of IT compliance rules concern how businesses acquire and secure data, as well as the availability of data both within and outside your firm. Internal IT compliance focuses on developing policies across the organizational structure of a corporation to secure company data.
External compliance procedures encourage client happiness and safeguard sensitive consumer information. To ensure compliance, digital tools are used to identify, monitor, audit, and report on conformity to standards.
To satisfy regulatory compliance standards, your firm must adhere to the following four objectives:
- Increase security: Maintain uniform levels of security across industries.
- Increase control by using stringent credentialing processes to avoid employee errors and internal theft.
- Maintain trust: Keep sensitive data, such as payment information, safe for customers who entrust organizations with it.
- Reduce losses: Avoid costly data breaches, which can cost millions of dollars in sales, legal fees, and data recovery costs.
Why Is Compliance Important?
Meeting IT security and compliance laws is critical for any corporation that handles digital assets and wishes to conduct business in highly regulated industries such as healthcare or finance. Although many IT compliance regulations use similar information security methodologies, it is vital that you meet industry-specific criteria.
Recent trends such as bring your own device (BYOD) regulations and the rising prevalence of IoT devices have made IT compliance difficult and confusing for many enterprises. BYOD has grown in popularity among businesses trying to cut IT costs and provide remote work choices to their employees.
This, however, entails more sophisticated IT risk management and the possibility of important firm data being compromised. If you’ve added mobile devices to your organization, you should be aware of how IoT can affect IT compliance. Many industry organizations have created compliance standards for Internet of Things devices such as Bluetooth-enabled devices, security systems, and Wi-Fi.
While IT compliance has a big financial incentive for businesses, satisfying IT compliance regulations can also help you get more security-conscious clients. IT compliance can also assist your firm in identifying flaws in your current information security strategy that you may have missed if not audited.
7 IT Compliance Standard
What are examples of regulatory compliance?
IT compliance regulations handle data security issues that are specific to particular businesses. As a result, there is no single IT compliance standard that applies to all firms. The most frequent IT compliance regulations are listed here.
1. Telephone Consumer Protection Act (TCPA)
Is your company involved in telemarketing? According to TCPA legislation, all marketing calls, text messages, and faxes are subject to government regulation. Without specific written consent, telemarketing calls, auto-dialing devices, and artificial or prerecorded audio messages to customers are forbidden. Consumers who want to withdraw their consent can do so by submitting their phone numbers to the National Do Not Call Registry.
By failing to get consent, failing to protect consumers’ privacy, or neglecting to disclose your text marketing conditions, your company could face fines of at least $500 for each text. You could also face greater sanctions, including class-action lawsuits.
2. Health Insurance Portability And Accountability Act (HIPAA)
HIPAA governs IT compliance in the healthcare industry, with a focus on patient privacy. When handling the information of its patients, any institution that controls healthcare data, such as hospitals, clinics, and insurance providers, must follow HIPAA standards. Failure to comply with HIPAA can harm a company’s reputation, result in large fines, and even bankrupt an entire business.
3. Payment Card Industry Data Security Standard (PCI DSS)
The PCI DSS, or Payment Card Industry Data Security Standard, is a collection of laws aimed to decrease financial fraud by securing customer credit card information. Any company that processes credit card information must include PCI DSS in its IT compliance strategy.
Noncompliance with PCI DSS regulations can result in significant financial fines. Following PCI DSS security procedures decrease the risk of cardholder data compromise while increasing consumer confidence. Failure to comply may result in severe penalties for your company.
4. Sarbanes-Oxley Act (SOX)
The Sarbanes-Oxley Act, abbreviated as SOX, is a federal statute that applies to all publicly traded companies. It safeguards investors from dishonest accounting practices by firms.
Though SOX does not have explicit IT requirements, it has an impact on system security by requiring that financial information processed and held by IT systems be protected. Following SOX regulations protects businesses from cyberattacks and data breaches. Failure to comply has criminal penalties.
5. Federal Information Management Security Act (FISMA)
FISMA, enacted in 2002, was one of the first regulations in the United States that particularly addressed information security measures and cybersecurity. FISMA compels federal agencies to consider information security to be a concern of national security.
In response to escalating cyberattacks on the federal government, the Federal Information Security Modernization Act of 2014 (often referred to as FISMA2014 or FISMA Reform) modified this statute. Failure to comply with FISMA can lead to the loss of federal funding as well as the inability to get into government contracts.
6. General Data Protection Regulation (GDPR)
The GDPR governs data protection and privacy in the European Union (EU) and the European Economic Area (EEA) (EEA). The fundamental purpose of the GDPR is to simplify IT compliance requirements for foreign enterprises operating within the EU and to provide individuals control over their personal data.
Individuals must provide consent before their data can be processed under the GDPR. During any data transfer, all acquired information must be anonymous and safe. Although the GDPR is in effect,
To advertise goods and services in EU member states, any global corporation must follow this rule.
7. Guide Good Practice 13 (GPG13)
Businesses in the United Kingdom seeking access to central government data must follow Good Practice Guide 13, or GPG13. GPG13 applies to every organization that interacts with the systems and networks of the United Kingdom government, including members of government, service providers, and contractors. GPG13 compliance focuses on cybersecurity, with a particular emphasis on log management and security monitoring.
IT regulatory compliance refers to a company’s adherence to state, federal, and international laws and regulations that apply to its activities. Specific criteria can vary greatly based on the sector and type of business. Your company will be forced to close if this compliance standard is not followed.