In information technology, two essential terms are IT security and IT compliance. Both focus on keeping information safe. However, there's a crucial difference that is vital for businesses.
IT compliance uses IT security practices to protect data on a different level. It's not just a set of good ideas; it's a set of rules you must follow when using IT resources.
Ignoring these rules can cause serious trouble for your business, affecting its reputation and profits. In fact, failing to meet compliance standards can result in heavy fines or legal consequences.
WEBIT Services has over 25 years of experience helping clients in the greater Chicago area achieve their IT goals.
By reading this article, you will learn what IT compliance is, why it matters, and how it's different from IT security.
What Exactly is IT Compliance?
IT compliance is the practice of following IT standards of procedure. It is often determined by a third-party regulatory organization (i.e., the market, privacy laws, international laws, etc.). These standards are legally enforced.
Different industries have their own set of rules. A business must follow these rules to work with others in the same industry.
Even companies that don't have to follow outside rules often create their own IT compliance guidelines, called internal IT compliance. Internal IT compliance acts as a code of conduct to ensure everyone in the company does things correctly.
Why Should I Care About Compliance?
IT compliance isn't just about following rules; it's a shield against data breaches. It protects your data, profits, customer trust, and brand authority.
People like to trust companies that take their privacy seriously, so having good IT compliance can make customers feel safe. Having and following IT compliance standards tells your customers that their data is secure and their privacy is respected.
Breaking the rules of IT compliance can cost a business a lot of money, damage its reputation, and even lead to legal trouble.
Different Kinds of IT Compliance
There are two main types of IT compliance: third-party and internal.
Third-Party IT Compliance
An industry regulatory body creates third-party IT compliance.
Third-party IT compliance determines which cybersecurity practices must be followed within that industry. It also creates standards for how the sector compiles, stores, and accesses data.
For example, healthcare follows compliance standards set by HIPAA, which ensures patient information stays private. In the finance industry, PCI DSS ensures all credit cardholder data is encrypted for customer protection.
Businesses must keep records to prove compliance standards are read, understood, and followed. These records are audited annually. The company must pay significant fines if the audit reveals that standards were not followed.
Internal IT Compliance
Unlike third-party IT compliance, a regulatory party does not set internal IT compliance. Internal IT compliance determines best practices for an individual company.
Each business can decide what works best for them. It's not about following someone else's rules. Internal IT compliance will be a collection of best practices to protect data and decrease the risk of cyber threats.
These standards are set by company leadership and may be called a “code of conduct” rather than “IT compliance.”
For instance, a company might say, "Don't use your work computer as a personal device" to prevent unnecessary IT risk.
How is IT Compliance Different from IT Security?
Good IT security is a big part of IT compliance, but they are not one and the same.
IT security involves tools and practices that protect your information and company assets. It's like having a lock on your door or a password on your computer. It works to prevent breaches and loss.
Compliance applies security practices to meet a third party's regulatory or contractual requirements.
IT compliance takes security tools and practices and turns them into rules. For instance, having a password is not just a good idea; it's a must.
Compliance chooses which cybersecurity practices to follow and how they should be followed. Compliance takes cybersecurity from a suggestion to a rule, making it foundational to your company’s IT practices.
When Do I Need to Worry About Compliance?
If your business is part of a regulated industry, you will have industry IT compliance standards that must be followed. If you do not follow IT compliance standards, your business will likely face legal action and substantial fines.
Even if you're not in a regulated industry, having your internal IT compliance policy is beneficial. A lack of security rules increases your risk for cyberattacks.
Can I Get Help to Make My Business Compliant?
Yes, there are IT providers who specialize in compliance who can help.
However, this is not a one-time project. Compliance is something that should regularly be monitored and assessed for risk. Then, risks should be addressed.
As technology evolves, compliance standards change to meet changing risks.
How Often Are Compliance Audits Performed?
In a regulated industry, audits are typically performed annually.
You can still be audited for compliance even if you are not in a regulated industry.
For example, if your organization accepts credit cards as payment, your payment processor will likely require you to prove you are compliant with PCI standards through an audit.
Next Steps Towards IT Compliance
IT compliance is essential in protecting your business and customers from cyber threats. It’s a collection of actionable, strategic practices to prevent data breaches.
Failure to comply with third-party IT compliance regulations can result in legal action, fines, reputation damage, and financial losses.
Some IT providers specialize in third-party IT compliance and can help bring businesses within compliance standards. If your current IT provider does not cover compliance services, they can likely make recommendations and connect you with an IT compliance specialist.
If you’re looking to build internal IT compliance practices, you can follow these steps:
- Create Your Company Standards: Make sure everyone knows what's expected.
- Bring in a Compliance Pro: Get someone who understands your industry’s compliance standards to evaluate your business for risks and suggest ways to stay safe.
- Training is Key: Make sure everyone understands the rules and how to follow them.
- Keep Talking: Make sure everyone can talk to the compliance expert. Communication is vital to making sure the rules are understood and followed.
- Check and Double-Check: Have systems in place to ensure everyone follows the rules. Keep records to prove it!
- Take Action: If something isn't right, fix it fast. Address risks promptly.
Following these steps will help decrease your risk in the digital world.
WEBIT Services has helped clients reach their IT goals for over 25 years. During this time, WEBIT Services has built many connections in different areas of IT provider expertise.
If you'd like recommendations regarding IT compliance, schedule a thirty-minute evaluation with WEBIT.
If you're not ready to make a commitment but want to learn more about IT compliance and security policies, we recommend the following articles:
- Managed IT vs. Managed Security vs. Compliance: What are the differences, and where do they overlap?
- 6 security practices to attract clients
- 7 Tips for building a culture of cybersecurity
- 7 Things to consider when creating an IT compliance policy
