What is Compliance in Business? 7 Types of Compliance Areas
Understanding “What is compliance in business?” means the difference between securing your privacy and information versus exposing your company to data theft, privacy breaches, and possibly litigation.
We will cover some of the most prominent types of compliance, what initiatives you can take to be compliant, and how your business can best create a safe and secure environment for everyone.
What is compliance in business?
Compliance for business relies on strict and constant adherence to organizational rules to protect its associates and clients alike. The compliance meaning in business refers to the adherence to local, state, federal, and (if necessary) global laws and regulations to provide privacy and data protection for all.
From the business owner to service providers and clients, compliance regulations, policies, and procedures ensure protection of personal information, customer data, and vital health information.
Compliance issues and non-compliance penalties arise when those standards are not met or maintained, so it’s essential to know what types of compliance exist.
How many types of compliance are there?
There are four main types of compliance in business that Hyper Vigilance handles across multiple industries
What is HIPAA?
This compliance is required to safeguard the protected health information (PHI) of patients. Any individual or organization who has access to PHI needs to comply, including hospitals, health insurance companies, health care workers, nursing homes, and medical transcription services.
The bedrock of CMMC. It regulates practices and procedures that must be followed to safeguard the control of Controlled Unclassified Information (CUI) that companies of the Defense Industrial Base (DIB) have access to.
What are the different types of compliance certifications?
Individuals as well as public and private companies need to be aware of compliance risks within their companies and they types of compliance audits and certifications available.
According to IBM and the Ponemon Institute, the average data related breach costs businesses with fewer than 500 employees $2.98 million, and the average breached record costs $164.
Broadly speaking, information security is vital to everyone as compliance applies to publicly traded companies, small businesses, store customers, and private citizens alike.
Created by the healthcare industry, the Health Insurance Portability and Accountability act safeguards the Protected Health Information (PHI) of patients, improves health care efficiency, and also provides a patient’s right to privacy. Individuals can feel secure knowing that their confidential medical records are safe and available for individual access, but are protected from the public.
To preserve the confidentiality of PHI, it’s critical that medical providers and every health-related business follows these health and safety compliance requirements.
NIST 800-171 regulates external compliance procedures that must be strictly followed to safeguard Controlled Unclassified Information (CUI) that companies of the Defense Industrial Base (DIB) have access to. Originally published in 2015 by the National Institute of Standards and Technology (NIST), these regulatory guidelines are updated consistently to meet the ever-changing cybersecurity standards.
If NIST 800-171 is the destination, CMMC is the path.
The CMMC definition is a cybersecurity framework using established accepted standards and codes of conduct created by the DoD and National Institute of Standards and Technology (NIST). CMMC consulting and compliance put protections in place for safeguarding Federal Contract Information (FCI) as well as Controlled Unclassified Information (CUI) shared with Defense Contractors.
Currently, there are three CMMC levels that companies can achieve to meet compliance standards.
While Hyper Vigilance does not offer services for the following compliance programs, we are aware of their significant impact to global business operations. It is essential to know the different types of audits and what they mean for your business compliance (where applicable).
General Data Protection Regulation (GDPR)
The European Union’s General Data Protection Regulation of 2016 (GDPR) is government legislation that guarantees EU Citizens have additional privacy protection and regulations that apply thanks to the strict policies set forth by the regulatory agency of the GDPR. Its data privacy laws help individuals retain the rights over personal data and also streamlines the environment for many businesses operating internationally.
International Organization for Standardization (ISO) 200071
The International Organization for Standardization created to maintain and improve information security, cybersecurity, and privacy management. The requirements lay out internal compliance procedures throughout the organization.
The benefit of compliance to ISO standards is that there regulations are made to be generic and all-encompassing, reaching across companies regardless of size or industry.
Systems and Organization Controls 2 (SOC 2)
Developed by the American Institute of Certified Public Accountants, SOC 2 compliance requires companies to keep any data they store from their clients private. Clients must consent to storing this information and are assure the information they collect is limited in scope.
SOC 2 type compliance relies on five standards – Security, Availability, Processing integrity, Confidentiality, and Privacy.
Why is compliance important?
Compliance is important because it ensures proper privacy and security for your organization while avoiding costly errors via fines or litigation. Compliance also secures customer data in the cloud, prevents data breaches, encourages a safe working environment, and aims to protect your employee or third-party data.
The purpose of compliance goes a long way to demonstrate your commitment to data confidentiality.
How we help business owners with different areas of compliance
Business owners need robust security measures in place, especially when it comes to securing credit card data, protecting employees working remotely, or auditing internal and external security controls for operational processes. An auditing process by a third-party ensures fairness, legitimacy, and integrity.
If you’re looking for enterprise compliance management, corporate regulatory compliance, HIPAA compliance, CMMC 2.0 compliance, or even assistance with your organization’s internal audits, we’re here to help.
Hyper Vigilance was the right choice to guide us through the cybersecurity process as we attempt to grow the business. They provide excellent service and we continue to look forward to working with the Hyper Vigilance team. We are very grateful for how they simplified the entire process and the efficiency during the transition to a secure platform!
Hyper Vigilance moved us from negative NIST score to almost full compliance in less than 1 month. The team is experienced, quick, efficient and works to find the best solution to maintain business operations while keeping security at maximum level. Communication and issue resolving is fast. Highly recommended.
We are required to comply with NIST 171 and CMMC to remain competitive for defense contracting, so we sought and received several quotes from reputable companies, and Hyper Vigilance was the top choice. They offered a higher level of assistance compared to others that were more expensive. The professionals at Hyper Vigilance have proved to be very knowledgeable, responsive, professional, and customer focused. The support they provide is very comprehensive and flexible, and have executed several innovative options/solutions to achieve our goal. Their technical professionals are always on the clock and are very responsive.