Utilizing Regulatory Compliance Frameworks to Navigate Potential Non-Compliance Pitfalls

Businesses of all types and sizes must be able to demonstrate that they follow regulatory compliance frameworks in order to stay in business. Failing to do so may result in the worst-case scenario – a government agency shutting down your business and dissolving your company. Additional penalties may include being blocked from providing key services or platforms or being hit with severe financial penalties. ¹ 

What Are Regulatory Compliance Frameworks?

Regulatory compliance frameworks are a set of guidelines and best practices for businesses to follow to help them meet regulatory requirements, improve financial transaction processing, and strengthen cyber security measures. The frameworks are written in common terms using language that can be easily deciphered in sales offices and board of directors meetings.²

They are also very useful in a variety of circumstances, including:

• External auditors that are tasked with evaluating whether or not an organization has implemented the proper controls to ensure compliance
• Internal auditors to evaluate the controls and processes within their own organization\
• Any third party that considers potential risks of partnering with the organization, such as investors, vendors, and potential customers
  
  

The Benefits of Using Regulatory Compliance Frameworks

The main benefit of using regulatory compliance frameworks is staying in compliance and keeping away the government heat. But there are other advantages that are helpful to businesses of all types, including:

• Maintaining a good business reputation – helps ensure confidence with customers that know their financial data is protected.
• Enacting advanced cyber security measures – helps protect against data breaches and keeps credit card information safe.
• Adhering to financial regulations – helps protect against insider fraud and scams.

Existing Regulatory Compliance Frameworks

There are many regulatory compliance frameworks currently in place, but not all apply to every organization when it comes to individual industries. However, when it comes to universal requirements that cover the personal data of employees and customers, most businesses should keep up with them in order to stay in compliance and avoid potential consequences. 

It’s important that all businesses are able to demonstrate their willingness to follow the frameworks that closely regulate their industries should an inquiry ever be made against them. Being able to show the steps that are being taken may just keep you in business.

Here are some of the most common cyber security frameworks that help keep businesses in the compliance line:

• National Institute of Standards & Technology (NIST) – A series of guidelines that help ensure sensitive data is kept secure. While it’s not a legal requirement, being able to prove that you’re following NIST standards is essential for any enterprise that handles confidential information, as it demonstrates you’re taking the necessary steps to guard against the latest cyber security threats and have a plan in place for responding in the event of a data breach.
• Privacy Shield – Governs the security of data being transferred between the U.S. and EU. It’s vital for any U.S. company doing business internationally, and shows they’re complying with its standards that enables the collection of personal data from EU citizens while remaining in compliance with relevant local data protection laws.
• Health Insurance Portability & Accountability Act of 1996 (HIPAA/HITECH) – Governs the handling of highly sensitive personal medical information. It covers hospitals, pharmacies, insurance providers, and any other organization that collects, stores, or processes this data. There are tough penalties for organizations that don’t meet the requirements. 
• Federal Risk and Authorization Management Program (FedRAMP) – Sets a range of security privacy and security requirements for organizations that stores or processes data in the cloud for federal agencies. These key guidelines help organizations evaluate the risk of such services.
  
  

Rely On a Compliance Expert to Help Your Organization Stay Compliant

If your organization lacks the knowledge to keep up with the ever changing compliance regulations, the best thing to do is ask for help. Xceptional believes in these causes so much that we’ve created a free Security & Compliance Guidebook that simplifies these complex subjects. They’ll help you understand the potential pitfalls and teach you how to set yourself up for success. Download a free copy by filling out the form below.

Contact us, and one of our professional experts will schedule your initial consultation (don’t forget to ask about a free security assessment) and get you started on the road to security and compliance protections to keep your business safe and secure.