As a business owner, you are responsible for the safety and security of your employees, customers, and company. This includes protecting your company from cyber attacks. There are many steps you can take to secure your business from cyber threats, but the most important thing is to have a plan in place. This means having the right cyber security tools and policies in place, and knowing how to use them.
In this blog, we will go over the basics of cyber security compliance measures and what you need to do to protect your business.
In this Guide:
- What Is Cybersecurity Compliance?
- Why Is Compliance Important in Cybersecurity?
- Types of Data Subjected to Cybersecurity Compliance
- Benefits of Cybersecurity Compliance
- What are the Major Cybersecurity Compliance Requirements?
- What are the Consequences for Organizations that Fail to Meet Cybersecurity Compliance Regulations?
What Is Cybersecurity Compliance?
Cybersecurity compliance is the process of ensuring that an organization’s cybersecurity practices meet all relevant security standards. This can include standards set by government agencies, industry groups, or even the organization’s own internal policies. Having a cybersecurity compliance plan in place is important to ensure that an organization’s security measures are adequate and up to date.
There are many different compliance standards that organizations can choose to follow, but some of the most popular include the National Institute of Standards and Technology (NIST) Cybersecurity Framework, the International Organization for Standardization (ISO) 27001, and the Control Objectives for Information and Related Technology (COBIT).
Organizations should regularly assess their compliance status to ensure that their cybersecurity practices are aligned with the latest security standards. Failure to comply with security standards can put an organization at risk of data breaches, financial penalties, and other negative consequences.
Why Is Compliance Important in Cybersecurity?
Compliance is essential in cybersecurity as it ensures businesses adhere to best practices and encourage them to take necessary steps to protect themselves from cyberattacks. By adhering to compliance regulations, organizations can significantly reduce the likelihood of attackers penetrating their systems and stealing sensitive data.
Risk analysis process and risk assessments play a critical role in understanding and mitigating potential threats. Data protection laws and regulatory requirements demand businesses to implement pre-defined security measures, maintain an information security management system, and develop robust information security programs.
A compliance team is responsible for continuously monitoring systems, internal and external audits, and ensuring customer data collection policies meet legal standards. By analyzing risk and working in accordance with compliance standards, organizations can minimize data breaches and improve their overall security posture.
Compliance safeguards sensitive information and promotes customer trust and brand reputation. Consumers are less likely to engage with a brand that has suffered a data breach. Compliance helps in supporting access controls and accountability, ensuring only authorized individuals can access secure systems and databases.
Enhancing data management capabilities is another significant aspect of compliance. Companies must implement data management systems that promote privacy and accessibility to authorized personnel while maintaining operational efficiency.
Avoiding fines and penalties is a vital reason to maintain security compliance. Non-compliance can lead to severe financial consequences, impacting an organization’s overall stability. Examples of potential penalties include fines under the Health Insurance Portability and Accountability Act (HIPAA), Payment Card Industry Data Security Standard (PCI-DSS), and California Consumer Privacy Act (CCPA).
Finally, compliance promotes operational benefits. By adhering to industry standards and employing security technologies, businesses can identify wasted resources, improve efficiency, reduce unnecessary data usage, and streamline their operations.
Types of Data Subjected to Cybersecurity Compliance
There are generally three types of data that organizations must protect to comply with industry regulations.
Personally Identifiable Information
Personally identifiable information (PII) is any data that could potentially identify a specific individual. This includes information like social security numbers, birthdates, addresses, and driver’s license numbers. PII can also include less obvious data points like IP addresses and cookies.
It’s important to protect PII because it can be used for identity theft, fraud, and other malicious activities. If your company collects and stores PII, you need to take steps to ensure that it’s protected from unauthorized access. This includes encrypting PII, storing it in secure databases, and restricting access to only those who need it.
Financial Information
Personally identifiable financial information (PIFI) is any data that can be used to identify a particular person and their financial history. This information can include things like a person’s name, Social Security number, bank account numbers, and credit card numbers. PIFI is often used by financial institutions to verify a person’s identity and to prevent fraud.PIFI can be very valuable to criminals who can use it to commit identity theft or other financial crimes.
Protected Health Information
Protected health information (PHI), also referred to as personal health information, generally refers to demographic information, medical histories, test and laboratory results, insurance information, and other data that a healthcare professional collects to identify an individual and determine appropriate care.
Under the Health Insurance Portability and Accountability Act (HIPAA) of 1996, PHI is considered confidential and must be safeguarded against unauthorized use or disclosure. HIPAA provides strict guidelines on how PHI can be used, disclosed, and protected. In most cases, PHI can only be used or disclosed with the individual’s written consent.
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Benefits of Cybersecurity Compliance
Information security is critical for any organization that handles sensitive data. Cybersecurity compliance is the process of ensuring that an organization meets all the security requirements set forth by regulators and other industry standards bodies. There are many benefits to complying with cybersecurity regulations, including reducing the risk of data breaches, protecting the safety and privacy of customers and employees, and avoiding heavy fines and other penalties. Organizations that implement strong cybersecurity compliance programs can build a reputation for being trustworthy and responsible, which can give them a competitive advantage. Security compliance can also help organizations manage risk more effectively and improve their overall security posture. Despite the many benefits of compliance, some organizations still struggle to meet all the requirements. This can be due to a lack of resources, inadequate security controls, or a lack of understanding of the regulations.What are the Major Cybersecurity Compliance Requirements?
These are some of the most common cybersecurity regulatory requirements:
PCI DSS
PCI DSS is a set of standards that are designed to protect cardholder data. Any company that accepts, processes, or stores credit card information must comply with these standards. PCI DSS is managed by the PCI Security Standards Council, which is a group of major credit card companies.
There are 12 requirements for PCI DSS compliance, which are organized into six categories:
- Build and Maintain a Secure Network
- Protect Cardholder Data
- Maintain a Vulnerability Management Program
- Implement Strong Access Control Measures
- Regularly Monitor and Test Networks
- Maintain an Information Security Policy
If your company accepts credit cards, it is important that you comply with PCI DSS. These standards will help to protect your customers’ information, and they will also help to build trust in your business.
HIPAA
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that establishes national standards for the protection of confidential patient health information. HIPAA requires health care providers and organizations to safeguard this information from misuse and unauthorized disclosure.
HIPAA also gives patients the right to access their own health information and to know how this information is used and shared. Patients have the right to request changes to their health information if they believe it is incorrect or incomplete.
Organizations that are covered by HIPAA must have in place procedures and policies to comply with the law. They must also provide employees with training on HIPAA and the organization’s procedures for protecting patient health information.
SOC
SOC compliance program is a term used to describe the compliance of systems and organizations with the requirements of the Service Organization Controls (SOC) framework. Security compliance with the SOC framework helps organizations to protect themselves and their customers from risks associated with the use of external service providers.
The SOC framework is a set of standards and controls that service organizations can use to assess and successfully manage their security risks. Compliance with the SOC framework can provide organizations with the assurance they need that their service providers have the appropriate controls in place to protect their data and operations.
NYDFS Cybersecurity Regulation
The NYDFS Cybersecurity Regulation (the “Regulation”) requires covered entities to establish and maintain a comprehensive cybersecurity program designed to protect the confidentiality, integrity, and availability of the covered entity’s information systems. The Regulation is geared toward protecting New Yorkers and the financial services industry from the ever-growing threat of cyberattacks.
The Regulation applies to any person or entity licensed, authorized, or registered by the NYDFS, including banks, insurance companies, and other financial services providers. Covered entities must comply with the Regulation’s requirements on an ongoing basis, and must also report any material cybersecurity events to the NYDFS within 72 hours.
Failure to comply with the Regulation may result in civil or criminal penalties, or the revocation of a covered entity’s license.
GDPR
The General Data Protection Regulation (GDPR) is a set of regulations that member states of the European Union must implement in order to protect the privacy of digital data. The regulation is also known as the EU Data Protection Regulation, Reg. No. 765/2016.
The regulation creates several rights for individuals with respect to their personal data, including the right to know what personal data is being collected about them, the right to have that data erased, and the right to object to its use.
Under the GDPR, all companies that process the personal data of EU citizens must take measures to protect that data from being mishandled or stolen. In addition, companies must provide customers with clear and concise information about their data handling practices. The GDPR went into effect on May 25, 2018, and companies that fail to comply with the regulation can be fined up to 4% of their annual global revenue or €20 million (whichever is greater).
FERPA
The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student educational records. FERPA gives students the right to inspect and review their educational records, the right to seek amendment of inaccurate or misleading information in those records, and the right to have some control over the disclosure of information from the records.
The law applies to all educational institutions that receive federal funding, including public and private colleges and universities, elementary and secondary schools, and even some non-profit organizations. FERPA covers all educational records that contain information about a student and are maintained by the institution.
Under FERPA, students have the right to inspect and review their educational records within 45 days of the day the educational institution receives a request for access. Students must submit a written request that includes the student’s name and address.
NIST
The National Institute of Standards and Technology (NIST) Cybersecurity Framework is a tool designed to help organizations better manage and protect their critical information and systems. The Framework provides a common language for discussing cybersecurity risks and a structure for organizations to assess their cybersecurity posture. It also offers guidance on how to implement cybersecurity controls and strategies.
NIST released the Cybersecurity Framework in 2014 in response to the growing need for organizations to improve their cybersecurity practices. Since then, the Framework has been adopted by organizations of all sizes and across all industries.
The Cybersecurity Framework is a voluntary tool, and organizations can use it in whole or in part, depending on their needs. Many organizations use the Framework to identify gaps in their cybersecurity practices and to develop action plans for improvement. The Framework can also be used to assess and compare the effectiveness of different cybersecurity control strategies.
CCPA
The California Consumer Privacy Act (CCPA) is a new law that took effect on January 1, 2020. The CCPA provides consumers with new rights and protections with respect to their personal data. This includes the right to know what personal data is being collected about them, the right to have that personal data deleted, and the right to opt out of the sale of their personal data.
The CCPA applies to companies that do business in California and that collect, process, or sell the personal data of California consumers. This includes companies that sell personal data to third parties for marketing or advertising purposes.
CMMC
The Cybersecurity Maturity Model Certification (CMMC) is a certification program that was created by the Department of Defense (DoD) to help ensure that contractors and other organizations who handle DoD data are adhering to best practices for cybersecurity.
The CMMC program is tiered, with Level 1 being the most basic and Level 5 being the most advanced. To become certified, organizations must undergo an assessment by an independent third-party to ensure they are meeting the requirements for their desired level.
The CMMC program is not mandatory, but many contractors are choosing to obtain certification as it can give them a competitive edge. In addition, the DoD is now requiring contractors to be CMMC-certified in order to bid on certain types of contracts.
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What are the Consequences for Organizations that Fail to Meet Cybersecurity Compliance Regulations?
Organizations that fail to meet cybersecurity compliance regulations face a range of severe consequences. These can include financial penalties, legal liability, reputation damage, and loss of confidential data. Organizations must implement robust security practices to prevent these repercussions and continuously monitor their systems.- Financial Penalties: Fines and penalties may be imposed on organizations by regulatory bodies that fail to comply. The severity of penalties varies on the extent of non-compliance. For instance, GDPR fines can cost an organization up to 4% of its annual revenue.
- Legal Liability: In case of a data breach caused by non-compliance, affected parties may file lawsuits against the organization. This can lead to additional financial burdens and long-term legal consequences.
- Regulatory Scrutiny: Recovering from a security breach due to non-compliance is challenging. After paying fines and penalties, businesses may face costly regulatory audits for years to come.
- Imprisonment: In the worst cases of non-compliance, business owners, directors, and executives could face imprisonment for criminal negligence.
- Business Disruption: Non-compliance can severely impact an organization’s operations. This leads to a loss of customer trust and potential defection to competitors. The costs spent on fines, lawsuits, and other penalties can negatively affect an organization’s ability to make necessary business investments.
- Revenue Loss: Organizations may be forced to temporarily halt their operations due to non-compliance, resulting in significant revenue loss and high overhead costs.
- Security Breaches: Non-compliance may lead to security breaches. Cybercriminals often profit by selling this data, further jeopardizing the organization’s security and reputation.
- Damaged Brand Reputation: Non-compliance issues or security breaches can tarnish an organization’s reputation. Restoring the company’s reputation may take a long time and require considerable effort.
Make Your Business Cybersecurity Compliant with Oppos
Business owners are responsible for ensuring their organization’s cyber security and data confidentiality. They should have a cyber security policy in place, and all employees should be trained on how to keep the company’s information secure. Cyber security is an ever-changing field, and business owners must stay current on the latest threats and best practices.
Don’t leave your organization’s cybersecurity to chance. Take action today to secure your valuable data and protect your reputation. Contact Oppos for comprehensive risk assessments, thorough penetration testing, and expert cybersecurity training. Our team of cybersecurity experts is committed to help you in protecting sensitive data against potential threats.
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Cyber Security Requirements FAQs
There are a number of different standards and requirements related to cybersecurity compliance measures. Some of the most common include ISO 27001, SOC, GDPR, CCPA, PCI DSS, and HIPAA. Each of these standards has specific requirements that businesses must meet in order to be compliant.
Third-party security assessments play a vital role in ensuring regulatory cybersecurity compliance standards. By identifying potential risks and vulnerabilities, these assessments help organizations to establish and maintain strong cybersecurity controls.
A comprehensive cybersecurity compliance program must address six key components: Security Policies and Procedures, Access Control, Compliance Audit, Asset Management, Incident Response, and Disaster Recovery. Each of these components is essential to the overall security of an organization.
The role of government in establishing cybersecurity regulatory compliance requirements is to ensure that businesses and individuals are taking the necessary steps to protect themselves from cyber attacks. By establishing compliance standards the government can help to ensure that businesses are following best practices for cybersecurity and can help to hold them accountable if they do not.
Organizations face several common challenges when implementing and maintaining cybersecurity regulatory compliance. One challenge is simply staying up to date on the latest cybersecurity threats and updates to compliance requirements. Another common challenge is ensuring that all employees are aware of and comply with the organization’s cybersecurity policies. Finally, many organizations struggle with budgetary constraints when it comes to implementing and maintaining cybersecurity compliance requirements.
