With more and more cases of data breaches and cyber attacks making headlines, it’s clear that companies need to do more to protect themselves. Not only are compliance regulations important for avoiding penalties, but they’re also essential for protecting your business and customers.
But which regulations apply to your business? And how can you be sure that you are in compliance? This article will discuss major types of compliance regulations that may apply to your business.
Why Are IT Compliance Regulations Important?
Nearly every organization is subject to some form of IT compliance regulation, whether it’s protecting personal data, keeping financial information secure, or ensuring that systems are available and functioning properly. Compliance regulations are important for a number of reasons:
- They help protect your customers, employees, and business
- They ensure that your company is adhering to best practices for data security and privacy
- They can help you avoid costly fines and penalties
- They can improve your company’s reputation
Types of IT Compliance Regulations
There are a number of different IT compliance regulations that may apply to your organization, depending on the type of business you operate and the data you collect and store. Here are some of the most common:
1. The Health Insurance Portability and Accountability Act (HIPAA)
This law applies to businesses in the healthcare industry and sets standards for protecting patient data. If you handle any kind of sensitive healthcare information such as medical records or health insurance information, you need to be compliant with HIPAA. Failure to comply with HIPAA regulations could result in a maximum penalty of $25,000 per violation.
2. The Payment Card Industry Data Security Standard (PCI DSS)
If your business accepts credit or debit cards, you need to comply with PCI DSS. This standard includes a number of requirements for protecting cardholder data, such as encrypting data transmission and implementing strong access control measures. Failure to comply with PCI DSS could result in fines of up to $500,000 from credit card companies, or the loss of your ability to process credit card payments.
3. The Sarbanes-Oxley Act (SOX)
The Sarbanes-Oxley Act was enacted to prevent a catastrophe like the Enron scandal. This law sets standards for how public companies must maintain accurate financial records (up to seven years) and report any fraud or abuse.
4. The Children’s Online Privacy Protection Rule (COPPA)
5. The Gramm-Leach-Bliley Act (GLBA)
This law applies to financial institutions and sets standards for the protection of customer data. These sets of standards are known as the Safeguards Rule and the Privacy Rule. They require financial institutions to have security measures in place to protect customer data and to disclose their information-handling practices to customers. Complete transparency is especially important in order to avoid paying a high settlement like Paypal for a breach in compliance.
Ensure Compliance with Simple Solutions
One of the best ways to ensure compliance regulations is to partner with a third-party provider that specializes in compliance. At Simple Solutions, we offer compliance as a service, which includes our team of experts keeping up with the latest changes in the law, and providing you with the resources and support you need to stay compliant.
To learn more about our compliance solutions, contact us today. We’ll be happy to answer any questions you have and help you get started on the path to compliance.