Many small business owners don’t think they need to worry about IT regulatory compliance.
But data breaches are on the rise at small companies, with potentially devastating consequences.
Is it time for your small business to get serious about compliance?
Let’s examine the risks and whether compliance makes sense for your organization.
The high cost of data breaches
Non-compliance leading to data breaches can cripple small businesses.
The average data breach costs companies $200,000.
Beyond fines and legal fees, it can destroy customer trust and a company’s reputation.
– 60% of small firms close following a major data breach.
– Healthcare data breaches cost the average practice $7.35 million.
– 83% of customers say they’d stop engaging with a brand post-breach.
How compliance helps
Regulatory compliance provides a framework for securing data against common threats like hacking, malware and employee mistakes.
It helps prevent disastrous breaches by:
– Mandating security controls like encryption, firewalls, and access controls.
– Requiring detailed incident response and breach notification plans.
– Enforcing policies and procedures around data handling and IT usage.
– Promoting a culture focused on security and compliance company-wide.
Signs you need an IT compliance overhaul
If any of the following apply to your small business, it’s time to revamp your compliance posture:
– You aren’t sure what regulations and laws apply to you.
– You have no formal policies or controls around data security and IT usage.
– You’ve experienced previous data breaches or had close calls.
– You store sensitive customer information like SSNs, financial data, or health records.
– Your systems and data storage solutions are outdated.
Performing a compliance self-assessment
Conduct an assessment comparing your current state to compliance regulations in your industry and location.
Identify gaps around:
– Relevant IT security regulations and statutes you should adhere to.
– Required security controls you lack.
– Formal policies and procedures you need to implement.
– Employee training on IT usage and compliance.
This will provide a roadmap of the fixes needed to strengthen compliance.
Conclusion:
Given the costs of fines, legal action, and reputational damage from data breaches, small businesses can’t afford to neglect compliance.
Review potential regulations impacting your company and perform an assessment to see where the gaps are.
Strengthening compliance now protects your customers and your business.
If you need help with any of this – reach out.
DS Tech specializes in helping you stay compliant.
