How IT Compliance Impacts Small Businesses: Staying Ahead of Regulations

If asked about the impact of IT regulations on their companies, most small businesses owners would probably get a little hot under the collar. The burden of compliance with all sorts of government regulations is already straining your resources, and here comes another round of regs, demanding your attention, distracting your workforce, and raising your costs. It can seem like another attack on small businesses, which can’t afford these added costs, in favor of large corporations which easily can. But it doesn’t have to be that way.

First of all, for the most part, IT regulations deal with data security and consumer privacy protection, which should be as much your concern as it is your customers’. Neither you nor they want the bad guys infiltrating your network and coming away with sensitive information. What harms your customers cannot be good for your business, so complying with industry standards for data security is a good thing. In fact, it can help your little company compete on a global scale with major corporations.

Admittedly, IT compliance can be complex, especially if your business crosses international boundaries. But that doesn’t mean you have to go to school on every regulatory regime across the globe. You can get reliable advice on pertinent requirements from a managed service provider, such as KMF Technologies. We can help you develop a data program that fulfills your legal obligations and provides a heightened-level security that gives you and your customers peace of mind.

Major IT regulations which small businesses must observe

Compliance standards can depend on your industry and the type of information you collect. The key regulatory regimes small businesses face include:

• Payment Card Industry Data Security Standard — Any business that collects, stores, handles, or transmits credit card information must maintain a secure environment.
• HIPAA — If your business handles patient medical information, you must observe standards for processing and storage of data.
• System and Organization Control version 2 — The American Institute of Certified Public Accountants has established guidelines for managing customer data records, which include important cybersecurity controls.
• General Data Protection Regulation — This set of regulations governs the collection and storage of data within the European Union. The GDPR applies even when a business is not physically located in a member state of the EU.
• Federal Educational Rights and Privacy Act — Any organization that receives federal funds from the US Department of Education must adhere to rules governing access to students’ educational information and records.
• National Institute of Standards and Technology — NIST, a non-regulatory agency of the US Department of Commerce, provides cybersecurity guidelines and best practices for information systems and organizations.
• California Consumer Privacy Act of 2018 — CCPA allows consumers greater control over personal information that businesses collect and limits the ways companies can collect and use consumer data.
• Cybersecurity Maturity Model Certification — Defense contractors anywhere in the supply chain for the US Department of Defense must implement controls and safeguards for protecting sensitive information.

Your managed service provider can help you tailor a compliance plan to your circumstances.

Managing your company’s IT compliance plan

To ensure compliance, your company needs a comprehensive security plan that enables you to:

• Identify the assets your business must protect, which include vital infrastructure, programs, and sensitive data.
• Assess the risks to each class of assets, along with the cost of a breach/loss.
• Develop policies and protocols to mitigate risk, which can include equipment and software upgrades and enhanced employee training.
• Transfer those risks you cannot mitigate.

Many small businesses do not have the resources to mitigate all cyber threats, so they engage a managed service provider for assistance in the form of cloud computing, disaster recovery, regular network maintenance, and continuous network monitoring.

Partnering with a managed services provider like KMF Technologies enables a small business to reduce the cost of compliance while enhancing the security of its network. It’s a win-win situation for businesses that would otherwise feel the crush of the regulatory burden. To shake off that burden, call us today.