Chances are, you use multiple software applications to run your business, but you might not know if they’re all compliant with industry regulations. Using compliant software is both a regulatory obligation and a critical component of cybersecurity. If you wait for a breach to occur before addressing compliance, it can lead to serious financial, legal, and reputational consequences.
No matter the industry, a proactive approach to using compliant software is essential for protecting yourself against potential threats.
Secure data storage is your legal responsibility
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Legally speaking, you’re responsible for storing sensitive data securely under various data protection laws, like GDPR. Not being the creator or maintainer of the software you use is no excuse. It’s your legal responsibility to ensure all software applications you use meet regulatory or contractual obligations.
For example, if your business is governed by SOC 2 regulations, you’ll need to do some research to find applications specifically designed to be compliant. Likewise, if you’ve signed a contract guaranteeing a certain type of protection to a client, you’ll need to verify the software you use meets or exceeds your contractual promises to avoid legal repercussions.
Skipping that research puts your business at risk for hefty regulatory fines in the case of a breach. For instance, a single violation of the Health Insurance Portability and Accountability Act (HIPAA) can cost up to $1.5 million per year! Typically, violations are discovered after a data breach.
Unfortunately, cybersecurity incidents are constantly on the rise, and the chance of a breach is quite large. It takes more time and effort to find the right software, and you might even need to hire a team to develop a custom application. However, the risks are too great to ignore.
Your reputation depends on your level of security
While failure to comply with data regulations can cost you a fortune, it can also ruin your reputation. If you’re caught mishandling sensitive information – whether or not that data is exploited – customers will stop trusting you, and you could lose quite a bit of market share.
Proactively seeking out secure software applications with a solid reputation is the only way to demonstrate your commitment to customer privacy and data security.
You’ll avoid operational disruptions
Nothing can bring business operations to a halt like a cybersecurity incident. Whether it’s a virus, a trojan, a botnet attack, or ransomware, a cyberattack will disrupt your business.
While you can’t prevent every cyberattack, using compliant software will eliminate many potential problems. Cybercriminals routinely target software with known vulnerabilities, and if you’re using an application because it’s cheap or easy, you’re asking for trouble.
It costs more to pay for secure software, but it’s a legitimate investment in your business. One cyberattack can bring your business down for days or even weeks, depending on how you’re hit. The losses can add up to millions of dollars for large corporations, and hundreds of thousands for medium-to-small sized businesses.
You’ll have a competitive advantage
When you use compliant software, you have the advantage of being able to say your customers’ data is safe. Many business owners and individuals are specifically looking to do business with companies that go the extra mile to ensure data security. When that’s you, you’ll get the lion’s share of clients who prioritize security, and those clients are typically willing to pay higher prices for greater value. This approach will give you a better customer overall.
This is especially applicable if you’re selling white label software to clients in an industry that mandates regulatory compliance.
Audits will be smooth
If you get regularly audited or assessed by compliance agencies, the process will be so much easier, saving you time, stress, and resources, especially for surprise regulatory reviews. When that happens, you won’t have to scramble at the last minute or worry about what’s going to happen. You’ll know your data storage methods are secure.
Encrypted software may help you avoid penalties
Perhaps the biggest benefit to choosing secure software is knowing that if a data breach does occur, you won’t likely be on the hook for paying any fines, provided the data was encrypted. Many regulatory agencies have stated they won’t typically fine a business for a violation in this case.
Proactive compliance is the best protection
Being proactive and selective regarding the software you use is the best protection against data breaches. Don’t wait for a breach to take action. If your software doesn’t meet regulatory requirements, find a different provider and start migrating as soon as possible.