Compliance acronyms often become the “inside jokes” of an industry, a sort of alphabet soup, but the language of business governance can quickly result in confusion. Clever letter combinations echo the rules and regulations of businesses, especially for companies in manufacturing and distribution. Compliance is a company-wide issue that affects everyone from owner to customer. With that in mind, here are three ways to reduce the stress of compliance management by making the rules of the road everyone’s business:
1. Know the compliance acronyms that affect your business
2. Optimize your ERP for reporting and metrics tracking
3. Bring in experts when compliance involves advanced cybersecurity, data privacy regulation, or highly sensitive record management
Rules and regulations serve to keep your data protected. Here are a few of the most common regulations that govern business data:
GDPR (General Data Protection Regulation)
Information that leaves the European Union must comply with GDPR even in countries that are not part of the EU. With comprehensive regulations for security and privacy in data handling, GDPR essentially protects your company from a security breach. If you draw any traffic from the European Union, you must follow the rules of general data protection regulation (GDPR).
HIPAA (Health Insurance Portability and Accountability Act of 1996)
HIPAA compliance is very common, yet many medical facilities miss important steps necessary to meet the fine print of HIPAA laws. All organizations that interact with medical practices in any way must comply with HIPAA. Health and humans services organizations obviously fall within HIPAA privacy rule, but HIPAA violations are seen across industries as more companies host data subject to these health information laws. Small businesses often fail to comply because of limited in-house expertise, which is why 2021 is moving more and more owners toward partnership with a small business IT provider that offers compliance care.
Here are a few of the types of companies that must process data in ways that comply with HIPAA rules and regulations:
Here are signs that you are keeping up with HIPAA compliance:
- Data is encrypted and protected by firewalls and anti-virus / anti-malware software suites
- Data is managed according to a business continuity plan that involves backup and disaster recovery solutions
- Risk management strategies include precise data breach response plans
Failure to comply with even a single HIPAA security rule has resulted in fines of 1.5 million for small companies and up to 16 million for large scandals. Large scale security breaches are common, and everyone handling or interacting with the medical industry needs to be ready for a cyber attack. Physical theft, such as mobile device theft, is also common, so in-house strategies must include data protection from employees and other on-site actors such as third-party consultants.
PCI DSS (Payment Card Industry Data Security Standard)
Payment data is sensitive data, and is therefore protected by advanced compliance standards. Fortunately, these regulations demand solutions that benefit all businesses. If you collect credit card information for any reason, you must ensure PCI DSS compliance. All credit card information must be encrypted. Data access must be limited and tracked so that information stays in trusted hands.
Information transmission requires firewall protection, cybersecurity software solutions, and proactive security management. The network must be accessed for vulnerabilities, and all software must stay updated, patched, and in compliance with the PCI DSS regulations. A penetration test is the best way to see if your company is at risk of a data breach.
EstesGroup can help you create a compliance plan for your business. Compliance acronyms abound, but the right IT solution will quickly make the rules and regulations of your industry as simple as saying the alphabet.