(Newswire.net — May 3, 2021) — Many business owners conflate IT security and IT compliance, but they are two different concepts for a reason. Security focuses on practical measures that deter and prevent breaches while compliance refers to processes that satisfy the requirements of a third-party, usually a government department.
Think about it this way: If security implementation is the carrot, IT compliance requirements are the stick that compels companies to obey IT standards.
There are all sorts of regulations that govern a company’s IT. High-profile examples include SOX, HIPAA for healthcare firms and CMMC for DoD contractors. As any business leader will tell you, complying with these standards is expensive. But failing to abide by them is much more costly in the long run.
Why IT compliance is important
Compliance is important for the following reasons:
- IT compliance services protects the business’s reputation: Any firm that fails to comply with government standards puts itself at risk of brand damage. Customers generally do not like companies that do not respect the rule of law.
- It reduces the likelihood of fines and litigation: While failing to comply with IT regulations isn’t usually criminal, it can come with hefty fines and penalties. For instance, healthcare enterprises that fail to adhere to HIPAA can face fines of up to $50,000 per violation. So if a firm loses 100 patient records, regulators could confiscate $5 million.
- It protects customers: Ultimately, compliance helps to protect customers. Following proper procedures keeps their details safe, protects their privacy, and enables a low-risk service.
How non-compliance affects you right now and in the future
Many business leaders approach compliance as a box-ticking exercise designed solely to satisfy government officials. To their minds, it doesn’t make much difference to their bottom line.
However, the reality is different. The compliance decisions you make today can have ramifications for how your enterprise operates now and in the future.
For instance, companies that design a comprehensive record-keeping strategy can ensure that they can record their efforts to comply with regulators. The immediate business impact of these processes today are small. But if auditors decide to investigate, proper records could prove invaluable.
This process is particularly critical as the role of IT compliance continues to grow. Information and electronic sharing impacts virtually all departments, from operations to human resources and finance. IT compliance ensures that company reps follow correct procedures to obtain and store data securely. And it ensures that both internal and external compliance functions are followed.
How to meet your industry’s IT compliance standards
So how, as an executive, can you meet your industry’s IT compliance standards?
- Read the regulations: You’ll want to familiarize yourself with all of the rules for your sector.
- Record all data: As discussed, you’ll also need to keep a record of your attempts to remain compliant – the work you’ve carried out.
- Get help: Using an IT provider in Utah grants you immediate access to professionals who understand compliance intimately and can alert you to any issues you might face.
Once you have a strategy, you can reduce the risk of fines and brand damage. Regulatory bodies, such as the Federal Trade Commission (FTC) and Securities and Exchange Commission (SEC) look more favorably on companies who proactively comply with rules to protect customers.