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Xceptional is pleased to announce an exciting, new Compliance-as-a-Service offering for all clients that will be available at the end of June 2022. Please read below for additional information about this new service. 

The Growing Cost & Complexity of Regulatory Compliance 

According to the Chubb Cyber Index the Healthcare, Manufacturing, Business Services, Public Sector, Education, and Information Technology industries have all experienced between 200% and 3000% growth in cyber-incidents and attacks over the last 24-36 months.

The growing number of cyber-attacks and data breaches across multiple industry segments is driving greater regulatory oversight and rule changes that result in additional operational, management, and reporting costs on organizations operating within or servicing regulated industries.

As of June 2022, there were over 122 regulatory actions under review by the U.S. Federal Government according to The Office of Information and Regulatory Affairs website. Once these new actions are implemented, organizations across multiple industries will be required to invest more time, money, energy, and effort to adhere to these new actions.

With over 395,608 regulatory restrictions, California is the MOST regulated State in the U.S. 

Healthcare is a heavily regulated industry, yet over the last 5 years hundreds of Healthcare providers have fallen victim to malware, hacking, ransomware, social engineering, and other malicious cyber-attacks, so it should be no surprise that 11 of the 51 open regulatory actions that are under review are related to the U.S. Department of Health and Human Services.

The complexity of federal, state, and international regulatory systems have created a significant cost burden on small and medium sized businesses, which account for 99.7% of U.S. companies and over half of private-sector workers. Small and medium sized businesses pay on average $11,700 per year per employee in regulatory costs, and the costs of regulation on businesses with 50 or less employees are nearly 20% higher than larger companies.

The costs associated with federal regulations on small and medium sized businesses are estimated to total over $40 billion annually according to the US Chamber Foundation.

According to the 2020 Assent Compliance Report, 88% of companies expect to spend more time on compliance efforts over the next three years. This demonstrates companies will require a steady increase in resources to manage compliance programs. At the same time, organizational confidence in meeting compliance demands has dropped from 6.2 to 5.4 (out of 10) over the last 24 months.

What’s Included in the Compliance-as-a-Service Solution?

Xceptional’s Compliance Manager is a hosted Compliance-as-a-Service platform and service that includes quarterly scanning and reporting for various regulations and compliance frameworks such as CMMC, NIST CSF, HIPAA, GDPR, ISO 27001, and Cyber Insurance.

The Compliance Manager solution can be customized to address your unique cybersecurity and compliance requirements, and includes:

• Annual Service Subscription
• Compliance Manager Software Module (licensed by regulation type)
• One-time Installation Support
• Quarterly Scans
• Assessment Report
• 1 Hour Report Review/Recommendations Session
• Policies, Procedures, Evidence of Compliance Documents (by regulation licensed)
• Additional Supporting Documents and Worksheets

Xceptional Compliance Manager also tracks the implementation of remediation activities and corrective actions, documenting compliance improvements and adherence.

This reduces the risk, cost, and time associated with regulatory compliance management and provides valuable support during the audit process.

Who Benefits from CaaS? 

Based upon market research and recent reports on what industries are witnessing an increase in cyber-attacks, data breaches, and increased regulations, industries falling into one of the below categories would get the most benefit from Compliance-as-a-Service:

Organizations operating in regulated industries, especially organizations with multiple locations:

• Retail/Hospitality/Franchise: Under attack for the last 5-7 years. Must comply with PCI, CCPA, GDPR, and other data privacy regulations.
• Automobile Dealers: Cyber-attacks increasing over the last 2-3 years. Now must comply with FTC Safeguards Rule (Gramm-Leach-Bliley Act or GLBA) like other financial institutions. Ongoing PCI Concerns.
• Healthcare/Biotech/Services: Have been owned by ransomware. Must comply with HIPAA, PCI, State data privacy regulations.
• Banking/Financial Services: Consistently under attack; malware. Need to comply with FFIEC, GLBA/FTC, FINRA, other regulations.
• Legal/CPA Firms/Business Services: Under attack for the last 3+ years. Getting owned by ransomware. Must comply with state data privacy laws and regulations within industries such as Healthcare, Financial, Banking, others.
• Manufacturing: Under massive attack over the last 2 years. Must comply with CMMC and other DoD, Federal, and State regulations.
• Public Sector/K-12 Education: Have been owned by ransomware. Must comply with State level data privacy and other regulations such as HIPAA.
• Utility: Have been under attack for 10+ years. Concerned with NERC, EPA, other Federal and State regulations.

How to Buy Compliance-as-a-Service 

The Compliance-as-a-Service Solution can be purchased as an annual subscription that is paid monthly. The solution can be sold ala carte – as a single solution, or it can be bundled with another Xceptional Care managed services or Security-as-a-Service solutions. 

Organizational benefits of Compliance-as-a-Service include but are not limited to: 

• Reducing the risk, cost, and time associated with achieving, managing, and maintaining regulatory compliance.
• Preserving revenue streams by achieving and maintaining regulatory compliance.
• Reducing the business risk and financial impact associated with regulatory fines or actions through the use of Xceptional’s Compliance-as-a-Service.
• Increase revenue growth opportunities through achieving and maintaining regulatory compliance.
  
  

Additional Resources

If you would like to see if this service offering is right for your company, schedule a confidential review of Xceptional's CaaS offering by filling out the contact form below. You can also look to the following resources below for more information. 

eBook: Compliance-as-a-Service Portfolio Overview

eBook: Compliance-as-a-Service and Security-as-a-Service Guidebook

Blog Post: A complete guide to data compliance

Blog Post: Comparing and Contrasting: Risk Management vs. Compliance

Blog Post: Setting the Record Straight on Security and Compliance Regulations

Webinar: Xceptional Innovation Series: BaaS, CaaS, Cloud Webinar