A modern organization today is characterized by various cross-functional departments with information technology intricately interconnected to each function. The interwoven landscape has, on the one hand, enhanced operational synergies, but at the same time, it has increased the risks of security failures and cyber threats. This reality has caused a surge in regulatory scrutiny and an increased focus on IT compliance.

IT compliance provides a starting ground for CISOs and seasoned security experts to weave security maturity into the organizational fabric. It emphasizes security and compliance essentials to build defense and withstand modern-day challenges.

What is IT Compliance?

IT compliance is the process of adhering to legal, contractual or regulatory requirements and industry best practices to ensure the security of IT activities and digital systems. It involves aligning internal policies with established guidelines to mitigate risks and protect sensitive information.

Who Needs IT Compliance?

All organizations, whether private or public, that utilize information technology for operations or deal with sensitive information need IT compliance. The applicability of standards and the stringency of requirements can, however, vary based on the criticality of infrastructure.

Generally, the following industries need IT compliance:

• Healthcare providers such as hospitals, clinics, insurance plans etc., that deal with patient’s health information
• Financial institutions and payment processors with the responsibility to safeguard payment information
• Government agencies and contractors with sensitive government data
• Technology companies that develop and maintain software
• Other service providers and institutions that are highly regulated or deal with critical information

Importance of IT Compliance

IT compliance is crucial to provide a structured framework to minimize the risks pertaining to information security. Adhering to industry best practices helps safeguard business-critical information and sensitive customer data. This, in turn, enhances business operations and market perception while enabling businesses to scale with ease. Especially for organizations operating globally, IT compliance can be a vital trust factor to ensure success.

Additionally, non-compliance brings more than just hefty fines. It leads to business downtime and long-term reputational impact because you become a cyber incident case study in no time. IT compliance is therefore essential to implement the right controls and ensure a resilient security posture to lower the likelihood of data breaches.

IT Compliance vs. IT Security

IT compliance is the adherence to requirements from external parties such as government and regulatory bodies. IT security, on the other hand, is the Implementation of technical safeguards to protect critical assets and the requirements stem from the organization’s unique security requirements.

IT compliance and IT security complement each other, and every organization must focus on both to defend against cyber-attacks. However, there are certain differences between the two:

Focus

• IT Compliance: To ensure compliance with IT regulations and standards.
• IT Security: To ensure protection of crucial information assets.

Goal

• IT Compliance: To get audit-ready and achieve certification 
• IT Security: To build resilience against security events 

Enforcement

• IT Compliance: Strictly enforced as per applicable requirements.
• IT Security: Organizations have the flexibility to choose control implementation based on security maturity.

Implementation Example

• IT Compliance: A healthcare organization developing policies, conducting risk assessments and implementing other measures to meet HIPAA compliance.
• IT Security: An organization implementing firewalls, intrusion detection systems, etc. to enhance overall security. 

The Result of Lapses

• IT Compliance: Lapses in IT compliance can result in specific regulatory fines and penalties like 10 million Euros or 2% of turnover in the case of GDPR. It can also result in reputational damage. 
• IT Security: Lapses in IT security can lead to intrusion attempts, data breaches, financial losses, operational disruptions and loss of customer trust. 

However, both IT security and IT compliance are intertwined. They share the common objective of protecting information assets and minimizing risk. Compliance frameworks lay the foundation for implementing security measures while continuously building a pipeline of controls helps achieve compliance readiness.

Read on: Why Your Business Needs A DevSecOps Approach To Software Development

Major IT Compliance Standards You Should Know

The applicability of IT compliance standards depends on the type of organization and the type of data you store. You may also be required to comply because of a contractual obligation or simply because your customer has asked for it.

But here are 5 major IT compliance standards you must know:

GDPR

The General Data Protection Regulation (GDPR) is a European Union (EU) data protection legislation. It governs the usage and storage of EU citizens’ personal data by any organization regardless of the location. As an IT compliance standard, GDPR:

• Mandates the implementation of technical controls such as encryption, access control, regular assessments etc. to safeguard personal data
• Grants individual’s rights to access, erase or restrict processing of data
• Regulates transfer of data outside the EU/EEA (European Economic Area)
• Encourages organizations to incorporate data protection best practices and process data lawfully
• Requires organizations to report a breach within 72 hours of the incident

ISO 27001

ISO 27001 is an international standard that provides a structured framework for building, deploying and maintaining an effective Information Security Management System (ISMS). As an IT compliance standard, ISO 27001:

• Emphasizes the management of security risks associated with IT systems and processes
• Mandates risk assessments and vulnerability scans to mitigate information security risks
• Recommends a set of controls, such as access controls, network security, encryption etc. for the protection of sensitive data
• Encourages organizations to ensure the physical security of IT assets
• Promotes continuous improvement by establishing a mechanism for regular monitoring and updating policies.

At Rare Crew, we’re proud to be ISO 27001 certified in order to provide security-focused solutions for our clients.

HIPAA

Health Insurance Portability and Accountability Act (HIPAA) is a U.S. federal law that advocates the protection of patient health information (PHI and e-PHI) by covered entities such as healthcare organizations and their business associates such as IT service providers. As an IT compliance standard, HIPAA:

• Enforces HIPAA security rule that requires implementation of authentication measures, encryption for safe transmission of ePHI and other measures to ensure data security
• Requires organizations to have a HIPAA privacy officer to ensure the deployment of security measures
• Lays strong emphasis on administrative, physical and technical safeguards to protect ePHI
• Requires covered entities to sign business associate agreements (BAA) to ensure that the associates comply with HIPAA rules
• Mandates breach notifications for any unsecured ePHI affecting 500 or more individuals no later than 60 days.

SOC 2

Service Organizations Control (SOC 2) is a security standard for service organizations that deal with sensitive customer data to ensure the security, availability, confidentiality, processing integrity and privacy of information. These 5 trust principles are specified by the American Institute of Certified Public Accountants (AICPA). As an IT compliance standard, SOC 2:

• Requires organizations to implement controls such as multi-factor authentication (MFA), data encryption, patch management etc., that align with the 5 principles
• Encourages classification of data based on sensitivity and educating employees to handle it properly
• Advocates the Implementation of a risk management program to minimize data security risks
• Reinforces the importance of having secure change management processes to reduce risks of unauthorized changes
• Mandates maintenance of failover mechanisms to ensure reliable access to services

PCI DSS

The Payment Card Industry Data Security Standard (PCI DSS) is a global security standard that applies to any organization that stores, processes, or transmits sensitive cardholder information. It is enforced by major credit card brands, such as American Express, Visa, Mastercard, Discover, and JCB, to ensure a secure cardholder environment. As an IT compliance standard, PCI:

• Advocates the development and communication of an information security policy
• Requires organizations to maintain secure networks and install firewalls
• Mandates regular vulnerability scans from authorized scanners followed by proper patch management
• Enforces Implementation of strong access control measures and the principle of least privilege to minimize credit card fraud
• Suggests the use of encryption and other protection methods for the safe transmission of data

How to Implement IT Compliance Standards in Your Organization

Implementing IT compliance standards requires cross-functional collaboration across IT, operations, legal, and other departments. There can be initial resistance, and you will need stakeholder buy-in to bring in a cultural shift to compliance. Start with a top-down approach, with leaders showing maximum commitment towards the initiatives. Ensure ongoing improvement as it is an iterative process. Follow these steps to implement relevant IT compliance standards:

Identify Applicable Standards

Start by understanding the applicability of IT compliance standards based on your industry and business context. Consider geographical locations to identify region-specific regulations. Also, evaluate widely acceptable frameworks across the industry. Align business objectives to the applicable frameworks and research best practices.

Assess Current Risk Profile

Take stock of the current environment by creating an inventory of critical assets and conducting risk assessments. Use a risk matrix to identify risk severity, likelihood, and impact. The matrix has 5 rating levels as insignificant, minor, significant, major and severe. Based on the ratings, prioritize your risks.

Identify Gaps in Compliance

The next step is to understand where your organization falls short. Compare the findings of the risk assessment to the existing controls in place. Identify the missing controls required to mitigate the identified risks and fulfill compliance obligations. The missing controls are your compliance gaps.

Mapping Controls to Requirements

Draft a tactical mitigation plan to fill the gaps. Map controls with requirements to create new policies accordingly or update existing policies. Establish a dedicated compliance team for Implementation along with clearly laid out roles and responsibilities. Communicate your expectations to the employees and ensure policy acknowledgments.

Implement Relevant Controls

After reaching the implementation phase, start by arranging for workforce training for the team. Next, deploy necessary technological infrastructure to build a pipeline of tightly integrated controls. Start implementing the missing controls whether they are authentication mechanisms, encryption, firewalls or others. Maintain documentation for every corrective action initiated to be used at the time of audits.

Monitor and Improve

Establish a mechanism for continuous monitoring at granular levels to confirm the effective implementation of controls. Conduct re-scans to ensure that the vulnerabilities from previous assessments have been closed and keep updating policies to keep pace with emerging threats.

Benefits of IT Compliance

IT Compliance is a strategic imperative to safeguard IT assets and ensure prevention rather than only counting on protection. It streamlines IT activities and brings more transparency to processes while holding the stakeholders accountable for secure operations.

Proactive Risk Management: Most IT compliance frameworks require regular risk assessments, vulnerability scans and Implementation of right controls to safeguard critical assets. Such measures serve as proactive measures to minimize risks associated with security events.

Better Business Opportunities: IT compliance demonstrates a commitment to responsible and ethical data handling. Displaying certifications on the company website or having a security profile is a differentiator to improve market access and opens doors to enterprise opportunities.

Operational Efficiency: IT compliance frameworks ensure standardized procedures and regular monitoring and improvement to minimize any deviations. Maintaining continuous IT compliance in the long run helps organizations achieve operational efficiency and save costs by reducing downtime and non-compliance implications.

Fostering Security Conscious Culture: Implementing any IT compliance framework requires the participation of various stakeholders. Employee training, disbursement and acknowledgment of policies, following security best practices etc, help raise awareness and build a security-conscious culture. 

Avoiding Penalties and Lawsuits: IT Compliance ensures adherence to data protection and other relevant regulations, helping businesses avoid legal penalties and fines. It also minimizes the risk of attracting regulatory scrutiny and being dragged into energy and resource-draining lawsuits.

Challenges of IT Compliance: Implementing IT compliance standards, especially manually, can overwhelm you with all the documentation and tasks that need to be managed, the budgets that executives need approval, and endless auditor meetings.

All in all, it’s easy to see how IT compliance isn’t simply about avoiding issues, it’s about reaping the benefits it brings, whether that’s increased security or operational efficiency. If you’re ready to get serious about IT compliance, the information in this article is a great place to start.