Why your business needs to comply with security regulations
Making efforts to meet your legal duties may appear to be a no-brainer for management, but just doing so may result in missed opportunities. Understanding the rationale behind the numerous rules, laws, and regulations that govern your business will enable you to reap the benefits they provide while remaining in compliance at all times.
These rules demonstrate the necessity of contemporary cybersecurity requirements and why all businesses that manage customer data, large and small, should be aware of them.
What are some common security regulations?
To achieve compliance with the GDPR, cyber security managers across the United States are reviewing their cyber security practices. Whereas in the past, data breaches might be addressed through public relations, under the GDPR, the loss of personal information may result in legal action.
GDPR compliance for U.S. enterprises with EU clients mandates that personal data be collected lawfully and only under specific circumstances. Furthermore, organizations must guarantee the rights of data owners while protecting personal data against misuse and exploitation. Penalties may be imposed if any provision of the GDPR is not followed. In the worst-case situation, you’ll be required to pay a fine of up to 4% of your annual global sales.
Children’s Online Privacy Protection Act (COPPA)
The Children’s Online Privacy Protection Act of 1998 (COPPA) is a federal law that requires website and online service owners to safeguard the privacy of children under the age of thirteen by seeking parental approval before collecting or using any of the users’ personal information.
Compliance with this act is important since violators might face fines of up to $43,792 per offense.
California Consumer Privacy Act (CCPA)
The California Consumer Privacy Act (CCPA) gives each California resident the right to examine all of the information a corporation has on them, as well as a complete list of all third parties with whom that data is shared. Furthermore, the California legislation empowers customers to sue businesses if their privacy policies are breached, even if no breach occurs.
The legislation applies to all businesses that serve California citizens and generate at least $25 million in yearly sales. Furthermore, any company with personal data on at least 50,000 individuals or that derives more than half of its revenue from the selling of personal data is subject to the legislation. To be subject to the legislation, businesses do not need to be based in California or have a physical presence there. They don’t even need to be based in the US.
Health Information Portability and Accountability Act
The Health Information Portability and Accountability Act of 1996 (HIPAA) is federal legislation that mandated the adoption of national standards to prevent sensitive patient health information from being revealed without the agreement or knowledge of the patient.
Entities that store information about an individual’s health condition or details on the payment for healthcare services are required under HIPAA to take steps to secure such information. Third parties are not permitted to access or use such information.
Why are security regulations important?
Regulations exist to assist businesses in improving their information security strategy by offering standards and best practices based on the industry and the kind of data they handle. Noncompliance with these rules can result in hefty fines or, worse, a data leak. At least one security requirement applies to almost every company. The challenge is figuring out which ones apply and understanding which policies and procedures are necessary to achieve compliance.
Part of the problem stems from the fact that regulations are not stated in a way that the average person can comprehend. To decode essential requirements and build an implementation strategy, it’s often important to work with a security specialist. These experts have expertise in putting systems, policies, and processes in place to meet the needs of numerous legislation and improve an organization’s security.
What are the benefits of complying with security regulations?
Here are some of the primary benefits of IT security compliance management for your organization, aside from assuring compliance and avoiding costly data breaches:
Building customer trust and a positive brand image
Consumer trust in a company has never been more important. The public will not give you their business if they do not trust your brand. Failure to comply with security laws may result in lasting harm to the brand’s reputation and a loss of consumer confidence, preventing the company’s growth. As you may expect, this is the worst-case situation that can easily be avoided.
Compliance would enable a more transparent and trustworthy connection between companies and customers if it were widely adopted.
Data management improvements
To comply with data security rules, businesses must keep track of what sensitive information about consumers they collect, know how and where they store it, and access, manage and amend it in a streamlined manner.
These standards force businesses to adapt and improve their data management skills so that they can promote privacy while also increasing operational efficiency.
When information security procedure is done in a consistent and systematic manner, the company’s key information and information processes are under the best possible control. There will be no new surprises, and you won’t have to worry if regulatory officials come to inspect your facility. Your procedures will ensure that your firm complies with all applicable requirements.
Compliance with information security regulations makes your job simpler
Information security faces significant hurdles in the digital age. Attacks and the costs that come with them, as well as a bad reputation, lost clients, and more effort, are all things that should be avoided. Working with information security and compliance in a consistent and systematic manner makes your day-to-day operations a lot easier. You can be confident and focus your efforts on expanding your organization by taking control of information security.
All in all, complying with the security regulations brings nothing but positive additions to your company. You will be continuing your growth journey without any obstacles in your way.