Cyber security compliance is no longer the IT department’s problem. Thanks to increasing cyber-attacks and tightening regulations, it is now a business priority. The more sensitive data you handle, the more at risk you are – and the more harm a breach could cause.
Your professional services firm must understand what the rules are, what is required, and how this translates into actionable steps. But complexity and near-constant adjustments make this very difficult. The first step is finding the right information.
Why Cyber Security Compliance Standards Matter for Professional Services Firms
What is Compliance in Cyber Security?
Put simply, compliance in cyber security means that you follow relevant laws designed to protect data and prevent cyber-attacks. This requires actions to maintain a strong security posture, such as continuous monitoring, effective risk management procedures, and the implementation of robust security solutions.
Why It’s Essential to Obey Cyber Security Compliance Requirements
From accounts to law firms, professional services providers often work in extremely regulated industries. The bar is high, the stakes are higher, and the consequences of failure could not be more dire. A single mistake can lead to a major data breach, in turn resulting in:
- Financial losses
- Data theft
- Lost trust
These factors alone can easily cause irreparable harm to your firm, particularly if you are smaller. But they are only the tip of the iceberg. Your biggest concern should be the legal consequences. The threat posed by cybercriminals is being taken more seriously than ever before, due to a significant increase in attacks over the last few years. In response, new laws have been introduced and existing ones amended to increase penalties and expand requirements.
Failure to comply can mean your firm is audited, fined, forced to delete data, or even temporarily prevented from operating. The legal fees alone, let alone any imposed as a punishment, can be significant enough to cause long-term damage: the immediate aftermath aside, these lost funds can prevent the adoption of new initiatives that would otherwise vastly improve profitability. For these reasons, non-compliance simply isn’t an option.
There are several key regulations that are especially important for your firm to obey.
GDPR
What Is It?
The General Data Protection Regulation (GDPR) is a landmark law introduced by the European Union in 2018. It aims to protect the data of individuals, and has since become the gold standard for authorities across the world.
The Requirements
One reason the GDPR is so well-known across the world is that it applies to any business that ever handles the data of EU citizens, regardless of where they are located. In short, it demands that data only be collected when necessary and with full transparency as to its use. The GDPR also introduced a “Right to be forgotten”, which means you must delete stored data upon request.
Compliance Tip
Perform regular data audits. Understand what information you are holding, where it’s being stored, and who has access. Keep a log of any requests made by individuals in regards to their stored information.
The Australian Privacy Act
What Is It?
The Privacy Act (1988) is the main law governing data use in Australia. It is designed to protect the data of individuals, similarly to the GDPR. The Privacy Act applies to all businesses in sensitive industries, or with an annual turnover of more than $3 million.
The Requirements
Under the Privacy Act, you must handle data with similar procedures to those dictated by the GDPR. Please note that new amendments were also introduced last year. These changes obligate you to ensure that overseas parties you send data to also obey the Privacy Act. The requirements to receive a fine have also been significantly lowered, meaning you are more likely to suffer consequences for non-compliance.
Compliance Tip
Vet out all vendors thoroughly to ensure they prioritise data protection, including those who operate overseas. If you fail to do this, you can be held accountable for any breach that occurs.
NDB Scheme
What Is It?
The Notifiable Data Breaches (NDB) Scheme is a separate part of the Privacy Act that specifically governs incident response. It fills gaps left by the rest of the Act, ensuring that if a breach occurs the appropriate measures are taken.
The Requirements
If your business experiences a data breach that is likely to result in serious harm to any individual, you must report it to the OAIC and inform affected parties. Your notice to individuals must include a list of next steps they can take to mitigate risk.
Compliance Tip
Prepare a strong incident response plan that includes guidance on NDB Scheme requirements. Place copies of your plan in an easily accessible location. Teach staff to report cyber threats early.
The Cyber Security Act
What Is It?
Introduced in 2024, the Cyber Security Act is intended to address lingering gaps within existing legislation and strengthen Australia’s IT security practices. It introduces two new rules for businesses, and two new government initiatives.
The Requirements
The Cyber Security Act has introduced minimum security standards for smart devices, which were previously poorly legislated. It also requires certain businesses to report ransomware attacks.
Compliance Tip
Encrypt data to reduce your risk of ransomware attacks, and audit any existing smart devices to check how secure they are.
Extra Advice for Maintaining Regulatory Compliance
- Document Compliance Activities: Keep a log of all assessments, security measures, and potential cyber threats. This allows you to demonstrate your efforts to maintain cybersecurity compliance in the event of an audit.
- Train Your Staff: Your compliance is only as strong as your employees. If they aren’t upholding your policies, you will be held responsible. Educate them on what is required, why it matters, and what will happen if they don’t comply.
- Stay Up-to-Date: The rules change regularly, which means you could be compliant one day and have serious gaps the next. Stay updated on relevant regulations, so that you’re aware when changes do occur.
- Remember US State Laws: The US is an interesting case, as each state has its own laws and essentially functions as a mini country. Many of these regulations will apply if you hold the data of American citizens, even if your firm is based in Australia. If you are subject to US law, remember to check state-specific rules and not just the federal ones.
- Be Proactive: Hesitance to act will not look good if you experience a breach. Instead of waiting for the government to force your hand, take a proactive approach towards cyber security.
Turn Cyber Security Compliance Requirements into a Competitive Advantage
Compliance and cyber security are about more than simply avoiding a fine. If handled correctly, they can actually give your firm a sharp competitive edge. Stronger security translates to a deeper level of trust with clients, ultimately improving your long-term profitability. Don’t wait until an attack strikes – work to improve your cyber security compliance sooner, rather than later, and reap the benefits.
iCare Cyber specialises in helping professional services firms comply with these regulations, as well as a variety of cyber security frameworks such as the Essential 8. If you’re concerned about potential audits or fines, discover 5 key steps you can take to reach compliance.