Collecting and managing data is key for businesses to make data-driven decisions.
In fact, by using data, you can meet business goals by up to 2.6 times!
As you can see, data holds great power. But, just as in the MCU, with great power comes great responsibility.
Data collection should ensure strong security compliance to protect users' privacy and industry standards.
What is security compliance? How to meet regulatory requirements when collecting data? Let’s find out!
What is Security Compliance?
Security compliance involves practices, controls and policies to follow data regulatory standards in business processes.
Achieving regulatory compliance is a proactive approach to keep up with constantly evolving regulations. But it surely pays off!
Security compliance programs can reduce risk exposure related to security breaches and cybersecurity incidents.
Also, compliance can minimize operational inefficiencies by establishing clear, standardized approaches that support more reliable business operations.
When it comes to streamlining processes, compliance often requires thorough documentation and regular audits.
Naturally, these audits can expose security gaps and outdated practices.
Organizations can then implement thorough compliance audits and tests to ensure adherence to compliance and security standards.
Steps to Ensure Security Compliance
1. Plan
Design and implement a risk assessment plan to identify potential risks in your security system.
Knowing your weaknesses can help you improve compliance efforts before potential threats even arise.
A regular risk assessment plan should consider the type of data your business handles, where it is stored and who has access to it.
It's also critical to consider mechanisms that prevent unauthorized access to data.
2. Establish
Establish security controls to prevent, identify and correct potential issues.
Technical controls cover network access controls, data encryption and key management.
These should also include system patch schedule, maintenance and incident response plans.
You can also think about automating security controls to streamline adherence to industry regulations and avoid severe repercussions.
3. Train
Businesses should train their collaborators so everyone understands their roles in achieving compliance.
Regular training can include courses, workshops, awareness programs, video tutorials and assessments.
These are great for evaluating their understanding and reinforcing security practices.
It's also key to promote and encourage a strong company culture of compliance, ensuring security teams follow secure practices.
Your IT, security or compliance teams should also regularly share updates, address concerns and provide guidance.
What is Cloud Security Compliance?
Around 96% of businesses use cloud environments, and 50% of them use public cloud services to store their workloads.
Not surprisingly, authorities have introduced laws and frameworks to promote comprehensive security strategies.
Cloud compliance regulation is about following those standards and practices that regulate the usage of these environments.
Continuous monitoring and protecting IT cloud infrastructures’ data with adequate access controls and end-to-end data encryption.
In this context, it's vital to stay updated with the latest regulatory requirements, streamline reporting and automate compliance processes.
6 Security Compliance Laws and Standards
1. ISO/IEC 27001
ISO 27001 is an international standard for cybersecurity compliance and Information Security Management Systems (ISMS).
In simple terms, an ISMS manages sensitive information, encompassing employees, processes and IT systems.
ISO 27001 states that a robust ISMS is essential for identifying, managing and reducing security risks.
Moreover, it can ensure the confidentiality, integrity and availability of organizations’ data.
An ISO 27001 certification means compliance at all levels of the technological environment.
It also demonstrates a commitment to protecting sensitive information.
2. System and Organization Controls (SOC)
SOC is a security compliance framework and certification developed by the American Institute of Certified Public Accountants (AICPA).
The SOC framework is based on five Trust Services Criteria (TSC): security, availability, processing integrity, confidentiality and privacy.
To get a SOC report, an organization needs an audit conducted by a Certified Public Accountant (CPA).
Although it’s not a legal requirement, it may be required by stakeholders or business partners.
In most scenarios, it ensures that an organization has proper controls for data management.
3. The US Health Insurance Portability and Accountability Act (HIPAA)
HIPAA is a federal regulatory standard that governs the use of health data in the US.
It's regulated by the Department of Health and Human Services (HHS), which enforces compliance through the Office for Civil Rights (OCR).
The HIPAA protects individuals' medical records and health information, ensuring data confidentiality, integrity and availability.
It ensures sensitive patient data is secured and protected, preventing inappropriate disclosures and unauthorized use.
The privacy rules described in the HIPAA enclose health care providers, health plans, health care clearinghouses, and their business associates.
4. NIST Cybersecurity Framework (CF)
NIST stands for National Institute of Standards and Technology— a government agency that guides cybersecurity risk management.
The NIST CF is a voluntary framework for meeting legal and regulatory requirements for businesses concerned with cybersecurity risks.
It offers a step-by-step approach that encourages constant monitoring and evaluation to manage and safeguard sensitive data.
5. General Data Protection Regulation (GDPR)
GDPR is a privacy and security law approved by the EU. It's one of the strongest in the world!
This regulatory obligation applies to all EU companies. However, it also applies to any business that collects data from EU citizens. So, it transfers to any non-EU country.
GDPR protects individuals' rights over their data and sets rules for how organizations must handle that data.
It also outlines financial penalties for breaking those rules, including fines up to €20 million or 4% of a company's global annual revenue.
6. Payment Card Industry Data Security Standard (PCI DSS)
The PCI DSS is the global collection of security standards for all companies that process online payments. Its main goal is to ensure that payment card data is safe.
These security regulations apply to other purchasing channels, such as mail or telephone, ensuring that cardholder data is secure across all payment methods.
Obligations outlined by PCI DSS include encrypting cardholder data, implementing strong access controls, and firewall configurations.
Why is Security Compliance Important?
Beyond legal requirements, security compliance is essential for preventing the loss of customer trust and protecting your business reputation.
Failing to meet compliance standards can expose your business to security risks. And, of course, this exposition can result in expensive consequences.
According to IBM, the average cost of a data breach in 2024 is estimated to be $4.88 million, which is the highest in history.
Non-compliance with cybersecurity standards can also have a very strong negative impact on business partnerships and growth opportunities, potentially losing your competitive edge.
Conclusion
Effective security compliance management is paramount to any business that uses data.
Therefore, your data handling must follow security policies and compliance frameworks, no matter what!
That's why partnering up with an experienced Product Development agency like us can ensure your product complies with standards.
At Capicua, we have an ISO 27001 certification and also comply with ISO/IEC 33000 and ISO 9001, which means that we're fully committed to security compliance.
Reach out to shape the future!
