In today’s market, running a small business is more complicated than ever. The competition is fierce, and cyber threats are ever-present. But arguably the most pressing issue is a global tightening of data security regulations. The bar is steadily rising, and the consequences of disobedience are becoming more serious. For consumers, this is a good thing. For you, it adds a whole new set of challenges.
Fortunately, IT compliance management doesn’t need to be overly complicated. A full page of new legal requirements might seem overwhelming, but once you break it down and think about what is actually required, it becomes much easier to understand. And once you know what’s expected of you, compliance will be quite simple.
Why IT Compliance Matters
Businesses are handling more data than at any other point in human history. The internet has made it easy to collect vast amounts of information, helping you understand everything from a customer’s shoe size to their favourite food. It has never been easier to learn who your customers are and what they need.
Unfortunately, you are not the only person this shift has benefited. Threat actors can also access this information, along with incredibly sensitive data such as finances, health, and login credentials. All they have to do is go through your business to get to it.
To combat this, government bodies around the world have been slowly tightening their data protection laws for the last few years. Previously, this area was almost entirely unregulated, giving businesses far more freedom. Now, it feels like there’s a new rule every time you blink. The consequences of failure can include:
- Fines
- Other penalties (such as being forced to delete data or halt operations)
- Lawsuits
- Massive reputational damage
Compliance management is also a matter of cyber security. Ultimately, these two parts of your business go hand-in-hand. If you’re non-compliant, you’re also vulnerable to data breaches – which bring their own set of problems. The good news is that all of this can be avoided with strong compliance and IT policies.
The Challenges Small Businesses Face
In sharp contrast to larger corporations, who typically have a dedicated team just for this, small businesses must juggle compliance along with their other operations. Some problems this creates include:
- Limited internal expertise: Small teams may lack specialised knowledge in compliance and IT.
- Rapid technological changes: As technology evolves, it becomes harder to keep up with regulations.
- Budget constraints: Investing in enterprise-grade tools or consultants may not be possible.
These obstacles might make it tempting to ignore compliance, or do the bare minimum. But this is a terrible mistake. The cost of compliance is far lower than the potential expenses of neglect.
Building an Effective IT Compliance Management Plan
Luckily for you, effective compliance management isn’t about having the most money. All you need is the right strategy.
1. Understand Your Obligations
Step one is understanding which rules you must follow. This can be more complicated than you might expect. For instance, healthcare organisations serving American clients in any capacity are subject to the Health Insurance Portability and Accountability Act (HIPAA) compliance requirements. If your business holds the data of EU citizens, you must also obey the General Data Protection Regulation (GDPR).
Identify your obligations before doing anything else. If you need help, many managed service providers (MSPs) are fully trained in compliance and can assist you.
2. Conduct a Gap Analysis
Now that you know what the requirements are, it’s time to see how your business compares. Perform a full analysis of your current policies and procedures, looking for any gaps. When you find them, write them down. This will provide you with a baseline.
3. Choose an IT Compliance Framework
Compliance becomes far less complicated when you have a guide. Choose an IT compliance framework that suits your business and current regulatory requirements, then stick to it. Two good ones to start with are NIST and the Essential Eight.
4. Develop Clear Policies and Controls
Draft a set of policies outlining safe data handling practices, non-negotiable defensive measures, and what to do during security breaches. This will become your team’s bible, helping them understand exactly what’s expected of them.
Then, implement strict access controls. Not every staff member needs access to all data, and those who do should be required to verify their identity each time. This is one of the most important things you can do, and most IT compliance frameworks mention it outright.
5. Invest in Secure Technologies
Deploy technological solutions that support your compliance efforts. Some examples are:
- Endpoint Detection and Response (EDR) solutions
- Multi-Factor Authentication (MFA)
- Secure cloud storage
- Encryption
- Backup and disaster recovery systems
6. Train Your Team
You cannot effectively ensure compliance if your staff don’t understand or uphold the rules. Take them through your new policies and procedures, then test them on what they’ve learned.
7. Plan for the Worst
Develop a strong incident response plan to help you address emergency situations (such as a major breach). Consider how you will handle security and compliance audits – for example, you will need strong documentation practices.
8. Remain Flexible
Compliance is a constant learning process. As regulations and your business change over time, your plan will need to shift as well. Regularly check that you are still protecting data and adhering to the necessary regulations.
End the Regulatory Headache With Effective Compliance Management
Rather than viewing compliance as another problem to solve, try to think of it as an opportunity. You are not just trying to avoid fines. By following best practices, you can quite easily turn data protection laws into a competitive advantage and a deep, trusting relationship with customers.
As we mentioned earlier, step one is understanding the rules – and iCare Cyber is here to help you do just that. We’re happy to share our in-depth expertise, if it means you don’t get fined. Start by learning about the Notifiable Data Breaches (NDB) Scheme, and how it impacts you.
FAQs
A: International laws often apply if you serve customers from that region, regardless of where your business is located. Always check your requirements carefully.
A: HIPAA compliance requirements are actually fairly similar to most others. The key difference here is the type of data being handled. HIPAA mainly governs healthcare information.
A: While a framework is not mandatory, it can provide invaluable support. We highly recommend using one, particularly if you’re starting from scratch.
A: Absolutely. Many small businesses partner with an MSP to manage risk and their regulatory obligations more effectively.
A: Reviews should be performed at least twice a year, or whenever you hear about a new regulation.