IT Compliance Standards Businesses Should Be Aware Of

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Written by: ConsultNet

a man and a woman are looking at a laptop in a server room working on IT compliance.

Businesses of all types need to be aware of their obligations to maintain IT compliance with multiple legal standards. These standards govern the collection and use of data and how sensitive information is protected and stored.

What Is IT Compliance?

IT compliance consists of the steps a company takes to ensure they are meeting the legal requi rements of various regulatory acts. These IT compliance standards may be issued by federal, state or international entities and often relate to sensitive information. The most common acts relate to consumer data, financial information or health records.

To comply with these standards, companies need to ensure that IT protocols, security tools and provided information, such as terms of agreement, meet the guidelines provided by a given agency. To be compliant means following the complete industry standards, policies and security requirements laid out in each act or regulation.

Why is IT Compliance Important to Businesses?

IT compliance is important for ensuring that information on consumers, employees and clients is kept private and secure. When companies demonstrate that they are compliant, they show customers, employees and partners that they take IT security seriously. Knowing that medical records, financial data and personal information is protected gives people more confidence in sharing details and having a business relationship with a business.

Consequences to Being Found Non-Compliant

Failing to comply with IT security mandates can have disastrous consequences for companies. Government entities require companies to demonstrate compliance or conduct audits to determine whether businesses are compliant. Failures can result in sanctions, massive fines and criminal penalties.

In addition, these mandates are designed to protect companies and their data from cyberattacks. Data breaches can be costly both financially and reputationally. If data are compromised, companies will need to notify affected parties, may need to provide credit and identity monitoring and can suffer from a loss of business.

a woman is standing in a server room using a laptop computer .

Common IT Compliance Standards to Be Aware of

There are multiple IT compliance mandates for companies to consider. Here are the most common.

GDPR (General Data Protection Regulation)

GDPR requires companies to protect information of European Union citizens. Companies that collect information on EU citizens must comply with the provisions, which gives rights to individuals to control how their information is processed, whether online or offline. Individuals can access, restrict, amend or delete their personal information.

The GDPR applies to any business within the EU or those that are not in the EU but process personal information and either offer goods or services to people within the EU or monitor the behavior of EU citizens.

HIPAA (Health Insurance Portability and Accountability Act)

HIPAA maintains the security of patient health records. It applies to all businesses that manage, access or transfer health records, meaning the act applies to physician practices, hospitals, clinics, pharmacies and insurers.

The act requires companies to have systems that restrict sharing of medical information, secure electronic files and have procedures that alert businesses and patients immediately if there is a breach of or threat to the data.

PCI DSS (Payment Card Industry Data Security Standard)

The PCI DSS ensures that payment card data, typically credit and debit cards are secure. It applies to any business that uses online transactions needing user data to be stored, transmitted or managed. Companies to which PCI DSS applies must promote transparency and engender trust with their clients who use web services.

The standards require companies to erect firewalls, not using vendor-supplied default passwords, protect stored data, defend against malware with anti-virus software and other tools, encrypt data in transmission and restrict access.

NIST (National Institute of Standards and Technology)

Unlike other regulations here, the NIST is optional. Established by the U.S. Department of Commerce, the NIST is designed to help businesses to maintain cybersecurity and reduce risk. The framework provides detailed guidelines for minimum cybersecurity coverage in five areas: identifying risks, protecting infrastructure services, detecting cybersecurity events, responding to cybersecurity incidents, recovering services, and improving overall cybersecurity resilience. This flexible framework allows businesses to tailor their cybersecurity strategies to their specific needs.

FISMA (Federal Information Security Management Act)

FISMA applies to federal agencies and requires those entities to implement IT security plans to protect sensitive data. It requires agencies to have data protection plans, promoting different security software and verifying vendors. It also factors in the security requirements of other federal departments.

SOX (Sarbanes-Oxley Act)

The SOX applies to U.S. publicly traded companies and foreign public companies that do business in the United States. Most of the act relates to financial reporting and is designed to protect shareholders from corporate fraud or accounting errors by requiring companies to disclose accurate financial information.

An IT-specific component governs the storage of financial records.

GLBA (Gramm-Leach-Bliley Act)

The GLBA applies to financial institutions that provide loans, insurance or investment or financial advice. It requires these institutions to disclose how their customers’ data are protected and any information-sharing policies in place.

Institutions must make customers aware of the policies and allow them to opt out of the services or to having their information shared with third parties.

FINRA (Financial Industry Regulatory Authority)

In contrast to other mandatory regulations, the Financial Industry Regulatory Authority (FINRA) serves as a regulatory body overseeing securities firms and professionals in the United States. Established to safeguard investors and maintain market integrity, FINRA sets compulsory guidelines covering areas such as market conduct and customer protection.

Compliance with FINRA regulations is a fundamental requirement for entities operating in the financial sector, emphasizing ethical behavior and professional standards. Firms that meet these obligations not only fulfill regulatory requirements but also contribute to fostering trust and transparency in the financial markets.

Industries Needing a Higher Emphasis on IT Compliance

a man is standing in a server room holding a tablet .

While protecting data and guarding against breaches is important for any company, certain industries must pay closer attention to IT compliance. Financial institutions, online commerce businesses, health care organizations and federal agencies all need to understand the multiple regulations that may be in play.

With more regulations in play, companies need to be sure that their IT standards are covering all the mandates at play.

ConsultNet IT Compliance Solutions for Businesses

ConsultNet helps companies maintain and exceed IT compliance guidelines. ConsultNet staff will help determine what regulations apply to your business and assess the current state of your IT to determine where you are in or out of compliance.

We will develop, plan, map, build and install a solution that delivers compliance with all applicable regulations. We will ensure that your company reduces risk, protects data and systems, and provides your staff and customers with confidence in your cybersecurity.

Compliance is an integral part of ConsultNet’s managed IT solutions for business. To learn more about how we can protect your company, contact us today.