The Importance of Cybersecurity Compliance

“This recent third-party breach is a reminder that compliance with cybersecurity standards is not just a regulatory requirement but a foundational requirement for safeguarding all sensitive data.”

As data breaches and cyberthreats increase, more and more companies’ sensitive information is being taken. The information being collected is not only from the companies that experience breaches, but also from their consumers. As a result of a breach, companies not only lose tangible materials, including possible trade secrets and customers’ personal information, but they can also lose the intangible, such as customer goodwill, trust, and market confidence. Consumers and potential customers may not trust any organization that cannot keep its customers’ data safe. In addition, the companies that lose the trust of their current and potential customers will likely miss out on revenue due to these data breaches.

Why Constant Vigilance is Necessary

Due to the rapid pace of technological evolution, cybersecurity is not a one-time setup that lasts forever. Companies that take a passive and reactive approach to cybersecurity and data protection are more likely to be targeted because their security measures are not up-to-date, and are thus easier to attack. As the abilities and technology of cybercriminals evolve, the companies defending against these attacks must also evolve. It is no longer sufficient for companies to only check their security measures annually. Instead, companies need to be constantly vigilant and that they are following regulatory standards, at a minimum. These regulatory standards are not there to just be checked off, but are there for the protection of the companies and their stakeholders. While being proactive does not fully guarantee that your company will not experience a breach, it does significantly lower the risk and the ultimate impact if a breach does occur.

Looking Beyond Individual Compliance

Companies have to look at the bigger picture when it comes to data breaches. It is no longer enough to just focus on your company’s individual cybersecurity compliance. Companies need to broaden their scope and make sure the third parties in their supply chain are similarly vigilant and following governmental regulatory standards, at a minimum. By failing to ensure your company’s vendors’ compliance, you may be exposing your company to liability and negative reputational consequences. Nicholas A. Muto

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