The need to comply with industry and federal regulations for keeping data secure drives a good part of what many big organizations spend on security. In this LastWatchdog guest blog post,Tim Harvey, CEO of Perimeter E-Securitym, outlines the basic considerations. Perimeter supplies compliance, security and messaging services.

By Tim Harvey

A need for renewed focus on risk management and compliance in business is one with which few would disagree. But putting that focus into action is creating a tremendous hidden cost that will affect nearly every company in the United States as we exit the Great Recession. A crushing burden of new regulations is creating compliance and cost challenges from Wall StreetÃ¢â‚¬â„¢s behemoths to Main StreetÃ¢â‚¬â„¢s entrepreneurs.

According to AMR Research, governance, risk and compliance spending will reach $29.8 billion this year alone, and thatÃ¢â‚¬â„¢s only going to increase. Much of that money will be spent on information security: programs and systems for monitoring and protecting corporate and customer data.

Several compliance regulations, such as GLBA (Gramm-Leach-Bliley Act) for financial services companies and HIPAA (Healthcare Information Portability and Accountability Act) for healthcare and medical organizations, have been in place for over a decade. But in the last several years there has been a flurry of requirements that impact nearly every company in the U.S.

New compliance regimes

There are also relatively new regimes, many driven by technologyÃ¢â‚¬â„¢s rapidly growing influence on customer transactions. Compliance with the PCI-DSS (the Payment Card Industry Data Security Standard) is required for any company that accepts credit cards. Data breach disclosure and notification laws now exist in 46 states with new national legislation being proposed within the senate this month which includes requirements for comprehensive information security programs.

The Red Flags Rule, introduced in 2008, is designed to curb the explosion of identity theft but is not even being enforced yet as Congress redefines the broad scope of businesses that must comply. And lest a company consider any shortcuts, FRCP (Federal Rules of Civil Procedure) has been updated with requirements that impact all businesses in the U.S.

Of course, this already-long list doesnÃ¢â‚¬â„¢t include other specific industry regulations, state regulations, or those that regulate government agencies.

Many businesses are just now becoming aware of the avalanche of regulation, with little in the way of knowledge and preparation. However, while many donÃ¢â‚¬â„¢t yet understand all the rules, the risks of non-compliance are clear as a bell: anything from fines to businesses being shut down. So, whatÃ¢â‚¬â„¢s a business owner, or a regional bank, or a hospital, to do to comply in a way that best protects their businesses and their customers?

Back to basics

When faced with complexity, itÃ¢â‚¬â„¢s often best to start with the basics and begin to prepare your organization from there. Here are a few simple steps:

Understand the regulations and requirements you now face, and create a strategy that protects you and your customers. Regulatory compliance can be a millstone around the neck of your organization or can be used as a map to achieve best practices that lead to greater security for your company and customers. Map your current policies, procedures and risk mitigation strategies to the regulations affecting your business. Then, identify the gaps that exist in your current security program and look for solutions that are best suited to fill these gaps.

and requirements you now face, and create a strategy that protects you and your customers. Regulatory compliance can be a millstone around the neck of your organization or can be used as a map to achieve best practices that lead to greater security for your company and customers. Map your current policies, procedures and risk mitigation strategies to the regulations affecting your business. Then, identify the gaps that exist in your current security program and look for solutions that are best suited to fill these gaps. DonÃ¢â‚¬â„¢t be afraid to look at replacing solutions that have been in place for some time with newer systems that that offer the necessary insight and value. In times of external change, companies need to be open to change too. New systems can ease compliance and result in lower cost of ownership over time. For example, you can now replace your separate firewall, intrusion detection systems, web content filtering, anti-virus, and virtual private network appliances with a single Ã¢â‚¬Å“unified threat managementÃ¢â‚¬Â (UTM) device that does it all and much more.

at replacing solutions that have been in place for some time with newer systems that that offer the necessary insight and value. In times of external change, companies need to be open to change too. New systems can ease compliance and result in lower cost of ownership over time. For example, you can now replace your separate firewall, intrusion detection systems, web content filtering, anti-virus, and virtual private network appliances with a single Ã¢â‚¬Å“unified threat managementÃ¢â‚¬Â (UTM) device that does it all and much more. Consider using an outsourced information security and compliance provider. Many companies are beginning to realize that they can save a substantial amount of money by outsourcing those elements of their information security program that are human resource-intensive. Few businesses are expert at maintaining a 24×7 security operation center, and for small businesses trying to create a comprehensive information security program, having Ã¢â‚¬Å“round the clockÃ¢â‚¬Â monitoring isnÃ¢â‚¬â„¢t even an option. Be sure to engage with a partner that can offer tools, reports, and other resources that make your regulatory compliance easy to manage.

information security and compliance provider. Many companies are beginning to realize that they can save a substantial amount of money by outsourcing those elements of their information security program that are human resource-intensive. Few businesses are expert at maintaining a 24×7 security operation center, and for small businesses trying to create a comprehensive information security program, having Ã¢â‚¬Å“round the clockÃ¢â‚¬Â monitoring isnÃ¢â‚¬â„¢t even an option. Be sure to engage with a partner that can offer tools, reports, and other resources that make your regulatory compliance easy to manage. DonÃ¢â‚¬â„¢t forget the ongoing testing. Once changes have been made to your overall security and compliance program remember to follow up with testing and reviews. Use outside help if needed, and look for solutions to fill remaining gaps until youÃ¢â‚¬â„¢re in compliance are comfortable with your exposure.

In todayÃ¢â‚¬â„¢s technology-driven world there is no such thing as being 100 percent secure and you can never eliminate all of your risk. But clearly regulators are going to great lengths to ensure that organizations are at least meeting a minimum of smart IT security and risk mitigation. The success of your business depends on achieving and maintaining a good information security foundation based in best practices, one that meets an evermore complex web of regulatory compliance requirements while not choking your bottom line.

About the author: Tim Harvey joined Perimeter E-Security as CEO in October 2009, coming over from the CEO post at XAware. Before that he served as S1 Corporation’s Senior Vice President of Sales, Marketing and Product Management. He graduated from the University of Florida with a BSBA in Finance and served four years as an officer in the United States Marine Corps.

August 24th, 2010 | Guest Blog Post