Learn everything about data security compliance, including standards, laws and best practices. Ensure your organization meets data protection requirements.
Across every industry, from financial services to healthcare to manufacturing, data is being collected at a record pace. It’s not just ordinary data like server logs and machine analytics; much of this data is sensitive — including financial transaction information, healthcare data and personnel files. Protecting that data from the threat of cyberattacks is not only crucial, it’s also increasingly complex. From new attack methods to ever-changing regulatory requirements to the complexities introduced by new IT infrastructures, organizations must now navigate a complex security landscape. To manage this complexity, every organization needs a data security compliance program to safeguard sensitive data against the possibility of breaches.
In this guide, we will explain what data security compliance is in detail, why it’s important and how you can enable a successful data security compliance management strategy within your organization.
Data security compliance is the technology discipline responsible for implementing and overseeing policies and procedures that ensure sensitive data is handled securely and properly. This includes policies that outline how to securely collect, process, store and distribute your organization’s data assets. Data security compliance also ensures the adherence to any legal requirements and industry regulations that govern data.
Data security compliance is one part of an organization’s data governance framework. Data governance is the overarching discipline that establishes the policies, processes and standards for data access, compliance and security within an organization. Data governance also outlines the roles and responsibilities of the various stakeholders who have access to data, ensuring that they use it responsibly. Data security compliance, on the other hand, is specifically concerned with the security aspects of protecting sensitive data from unauthorized access, external breaches and other threats.
Understanding the critical role of data security compliance will help your organization better safeguard sensitive data, earn the trust of customers and minimize the risk of compliance violations.
Every industry has compliance regulations and standards they must follow to ensure the integrity, confidentiality and availability of sensitive data.
Here’s an overview of some of the major regional and international data compliance standards that impact a wide range of industries:
GDPR is a European data privacy and protection law that stipulates how organizations need to handle EU citizens’ data. Enforced by the European Data Protection Board (EDPB), GDPR mandates that organizations must get explicit consent from individuals to process their personal data, implement a number of specific data protection measures and notify authorities of data breaches within 72 hours.
HIPAA is perhaps the one data security standard that Americans are most familiar with. Enforced by the U.S. Department of Health and Human Services (HHS), HIPAA requires healthcare providers to protect sensitive patient health information and safeguard electronic patient health information through strict access controls, including encryption.
CCPA is a state law enforced by the California Attorney General’s office. It gives California consumers specific rights around the collection, use and personal sale of their personal data by businesses. It requires companies to implement security measures to protect customer data and mandates transparency around data collection practices and the provision of opt-out mechanisms. While CCPA only applies to California residents, most consumer-focused businesses have some interaction with California-based customers, which has made CCPA a major regulatory force in the U.S.
PCI DSS requires businesses that process, store or transmit credit card data to implement security measures, including firewalls and encryption, to protect cardholder information. It is enforced by the Payment Card Industry Security Standards Council (PCI SSC).
Developed by the Department of Defense, FISMA’s primary goal is to protect sensitive information held by the government. Compliance with FISMA is mandatory for all federal agencies and contractors or service providers that manage or process federal information or operate federal information systems. This includes organizations across various sectors, such as IT service providers, cloud service providers and any other entities that handle federal data.
Just one data breach can have catastrophic consequences for a business. Not only can it erode customer trust, it can also have devastating financial and legal repercussions.
Here are some of the key reasons why it’s important to have a data security compliance strategy:
A data breach, however minor, can permanently damage a company’s reputation with both existing customers and potential ones.
Companies that aren’t transparent about how they protect personal data run the risk of losing customers’ trust and loyalty due to fear and suspicion over how their data is being used.
Organizations which don’t adhere to the aforementioned laws and regulations (and more), knowingly or unknowingly, can face hefty fines. They can also face lawsuits from customers and governments in the event of a data breach.
Cyberattacks and other data breaches can force a shutdown of business operations and loss of revenue, further damaging ongoing operations.
Data compliance and data security compliance are sometimes confused as being the same thing, and they do, in fact, overlap in several ways.
Data compliance refers to the broad practice of handling, managing and storing data in a manner that adheres to regulatory requirements, industry standards and internal policies. Conversely, data security compliance is more specifically concerned with the measures used to protect sensitive data from unauthorized access, breaches and cyberattacks.
To use a loose analogy, data compliance is like an airline following FAA regulations, such as having proper documentation, licenses, inspections and safety checks for each plane. Data security compliance would equate to the tangible tools used to keep passengers and staff safe, such as having functioning seatbelts and locked cockpit doors.
Changing regulations are just one of the challenges to maintaining effective data security compliance.
Here are some of the most common obstacles that organizations encounter in this discipline:
The regulatory landscape is always changing. Staying on top of new rules and standards is challenging but necessary to avoid potential financial and reputational penalties.
Organizations must contend with data coming and going through many different environments, including on-premises and cloud networks. This complexity makes data that much more difficult to control and protect.
Companies risk losing customers if users get too frustrated with the authentication process, particularly if it involves multiple factors or steps. Data security compliance professionals are challenged with providing access controls that are secure but also user-friendly enough to keep users engaged.
We live in a global economy. With data being transferred constantly from one region to another, organizations need to find ways to navigate regional data privacy and security regulations.
When it comes to data security, one of the biggest lines of defense for any organization is its people. Yet, keeping employees up to date on changing regulations and new security threats presents an ongoing challenge, both in resources allocated to training and in keeping employees engaged with the topic.
Just as data security is becoming more sophisticated, so are cyberattacks. Organizations are challenged to stay on top of emerging tactics and technologies used by cybercriminals and must constantly bolster their security measures in response to the latest threats.
Follow these actionable steps to maintain a successful and long-term data security compliance program in your organization:
Like any business function, compliance needs to have a dedicated point person or team. Your compliance officer should have a direct line to the executive team, as well as the authority and credibility to get the support of leadership to undertake data security initiatives.
It’s important to continually monitor and log network traffic, user activity and system events. The activity should be reviewed regularly to detect any compliance violations or potential security incidents so that any intervention can be made in a timely fashion.
This one should be obvious: Stay on top of regulatory changes by continually reviewing them and adjusting your data security measures accordingly.
Educate employees regularly about data compliance and security, including their roles and responsibilities when it comes to protecting sensitive data.
There are several reasons why it’s smart to keep detailed records of your data security measures and compliance activities. In the event of an audit, having detailed compliance activity reports can demonstrate good-faith efforts in complying with regulations. Also, employees invariably come and go; having detailed documentation of all your data security plans means the organization won’t be left stumbling in the dark should the compliance officer or a key lieutenant suddenly leave.
Today, data security compliance is no longer an elective option for companies, it’s an essential discipline needed for building and maintaining customer trust, safeguarding your brand reputation and ensuring ongoing success.
Organizations need a robust data security compliance strategy in place not only to protect sensitive data against the ever-present threat of cyberattacks and breaches, but also to ensure they are compliant with any legal regulations and industry standards. Across industries, organizations must navigate a complex data landscape fraught with constantly changing regulations that can leave them suddenly vulnerable to financial and reputational penalties.
Data security compliance is not without its challenges. Aside from the complexity of keeping up with evolving regulations, organizations are tasked with securing data within increasingly complex IT environments. They also need to stay ahead of cybercriminals employing increasingly sophisticated tactics and technologies while keeping employees up to date on new regulations, standards and security procedures.
Organizations can overcome many of these challenges with a solid data security compliance plan that is built with proactive oversight in mind. This plan starts with having a dedicated compliance officer or team that can marshal support from leadership to prioritize data security and foster a broad security-conscious culture within the organization while keeping detailed logs and documentation of all compliance processes. By taking these steps, every organization can improve data security while deepening customer trust and loyalty.
