One thing is certain as we look ahead to 2021: while some things change, some things stay the same. This is true in IT compliance, too. The new year will keep throwing industry regulatory requirements at small businesses, and small businesses will continue trying to piece strategies together to meet them.

What is IT Compliance?

IT compliance is a regulatory oversight by various governmental and industry specific agencies. These rules and laws are put into place specifically to protect consumers’ sensitive data from the implications of data breaches.

There are some very specific regulatory agencies and rules, such as the US Health and Human Services’ Health Insurance Portability and Accountability Act (HIPAA). HIPAA has evolved from medical provider-based regulations focused on hospitals, doctors, and other health agencies to a far-reaching entity with its fingers in many pies, including legal services.

How Does IT Compliance Cross Industries?

Let’s look at personal injury cases for the legal vertical. A law firm representing a client who was injured in a work-related incident or vehicle accident will have the client’s healthcare records to use for evidence in the case. This pulls the legal team into HIPAA territory.

The client would pay for legal services with a credit card. Enter the PCI regulations affecting financial industries and transactions.

To make matters even more complicated, the legal firm was already answering to the American Bar Association to maintain ethical and moral behaviors when dealing with sensitive data. The truth is that most industries have more than one regulatory board issuing laws and rules to guide their handling of sensitive data.

What is IT Compliance Like Outside the United States?

The US isn’t alone in compliance and regulatory standards. Nearly 65% of countries across the globe practice safe data legislation. If your company conducts business outside of the US, you will need to be familiar with foreign legislation such as Europe’s General Data Protection Regulation (GDPR) and South Korea’s PIPA (Personal Information Protection Act) which is considered the most stringent regulations in the world.

Don’t Forget the State IT Regulations

As if federal guidelines and national regulations aren’t bad enough to track already, don’t forget your state-specific laws. Every state has IT compliance regulations for businesses, such as:

• The New York Shield Act
• The California Consumer Privacy Act
• Oregon Consumer Information Protection Act (OCIPA) SB 684
• Texas Privacy Protection Advisory Council

The Ugly Side of IT Compliance Violations

Ignorance of the law is no excuse, Thomas Jefferson once stated. This principle has been recognized since early Roman and Greek philosophy, and it is still upheld widely in courts around the world.

What does that mean for your business?

Simply put, your company is responsible for staying compliant with industry specific regulations…even if you don’t know them all.

Not Knowing the Rules WILL Cost You

From stiff fines to legal action, not following your industry specific regulations will hurt you. In some cases, CEOs have been held personally liable and lost their positions in a company following regulatory violations.

You will also be liable for damages from customers or clients who were “damaged” from the fallout of a breach. It’s while you are attempting to grapple with all the consequences of a breach that the doorbell rings, and the government steps in like an unwanted guest at your private dinner party.

On top of the initial “sticker shock” of the steep fines leveled against your business, your reputation will take a potentially terminal hit.

Remote workers aren’t immune, either. In fact, regulations are tightening to cover the remote teams in your business.

Regulatory Requirements Aren’t ALL Bad

What is IT compliance? A chance to check up on your security and standardize your platforms. It’s also a great way to signal to your prospective clientele that you take their security seriously. It’s a great way to give your company’s reputation a little boost.

In addition, following regulatory guidelines will qualify you for lower rates in cyber risk insurance. In fact, most providers will not touch your business unless you can prove you are compliant to all industry-specific regulations.

Compliance vs Security

You can’t be compliant without being secure, and chances are a good security platform will make you compliant. So, what’s the difference between IT compliance and IT security?

IT Compliance is a set of external requirements governing your customers’ sensitive data. It exists solely to satisfy standardized security requirements and is considered compete when the benchmarks are reached, or until the next compliancy update passes legislation.

IT Security is an ever-evolving internal journey that is established to protect the business and its clients and is established for self-preservation. The IT security journey is never truly “finished” as it will continuously need upgrades and improvements.

Don’t Face IT Compliance Alone

Some organizations may have a dedicated IT compliance officer on staff, but many small to medium-sized businesses don’t have the resources for this niche.

A qualified MSP, like Datum Consulting, has the expertise to handle your IT compliance issues regardless of your industry. Datum Consulting can take the guesswork out of compliance and help shoulder the responsibility.

Remember the only constant is change, and nowhere is that truer than IT compliance. Start the new year off with a Compliance Consultation to see if your current IT strategies are in-line with your industry’s state and federal regulations.