As a small business owner, it's important to understand the significance of data security and compliance. The normalcy of digitalization has made businesses vulnerable to cyber-attacks. With each new day, businesses create and use more data than ever before. And yet, most companies don’t protect that data effectively. In a study done by the Ponemon Institute, they found that 77% of businesses surveyed were significantly ill-prepared to defeat cyberattacks and threats to their data. It’s staggering to think that three out of four businesses could be crippled by a data breach in the tap of a keyboard.

Compliance is also an area that business owners can easily forget about. The reality, however, is that not being compliant with industry regulations can lead to legal and financial consequences. While it might not be a focus for most executives, compliance is critical to a healthy business and avoiding consequences in the future. With so many regulations and industry-specific requirements, organizations need to be willing to invest the time and effort into ensuring compliance. 

So where should you start? We’ve broken data security and compliance down into tips and best practices to help your team understand your situation and know what items should get your top priority today. 

Definitions and Statistics

Let’s start by simply defining the terms that we are talking about. Without a proper understanding of the topics, many business owners can be left even more confused than when they started looking into the topic.

Data security, according to IBM, is the practice of protecting digital information from unauthorized access, corruption, or theft throughout its entire lifecycle. It’s a concept that encompasses every aspect of information security from the physical security of hardware and storage devices to administrative and access controls, as well as the logical security of software applications. It also includes organizational policies and procedures.

Compliance, on the other hand, is the formal governance structure in place to ensure an organization complies with laws, regulations, and standards around its data. The process governs the possession, organization, storage, and management of digital assets or data to prevent it from loss, theft, misuse, or compromise. Compliance is very industry-specific, meaning that not all regulations apply across the board. Understanding which jurisdiction your organization falls under is important to long term success. 

Your Data As the Keep, Your Security as the Moat

Your business's data is its most valuable asset, and it's crucial to protect it. In recent years, cyber-attacks have become more sophisticated, and small businesses have become their primary targets. According to a report by Accenture, at least 43% of cyber-attacks target small businesses. In the event of an attack, small businesses can be left to scramble and pick up the pieces financially. 

While some attacks can only cost businesses a few hundred or thousand dollars, others can have devastating impact. Depending on the severity of the attack, it isn’t uncommon for organizations to deal with hundreds of thousands of dollars in damages, which can be fatal for companies. 

Think of your data as the keep, and your security as the moat that surrounds it. A strong security system can prevent unauthorized access, theft, and destruction of your data, while making it increasingly more difficult for hackers to crack into your system. 

Best Practices

So what can be done? What does your team need to focus on in order to limit your risk and exposure to cyber attacks? We’ve compiled a list of best practices below. 

Conduct Regular Risk Assessments

You and your team need to understand where your organizational weak points are on a routine basis. Regular risk assessments to identify potential risks and vulnerabilities to your data are a first step in this crucial process. Understanding where your threat sources and vulnerabilities are will help you to educate your team and bolster defenses in the appropriate areas. 

Secure Your Network

Controlling who has access to your network at all times is of utmost importance for small businesses. Securing that network will help your team prevent unauthorized users from gaining a foothold. There are a variety of ways you can secure your network, from encryption to dual-factor authentication. Always make sure that there are no unauthorized network sources, like unknown wifi being used by your team.

Train Your Employees

Your employees are a major defense in the fight against cyber attacks. All business owners should make the effort to educate their employees on data security best practices and make them aware of potential risks. This includes phishing scams and other social engineering attacks. 

In fact, phishing attacks are so common that a 2021 FBI report named 22% of all cyber attacks as starting with phishing attempts. Employees need to be warned to use good judgment when opening emails and clicking on links. Be sure to inspect the source that communications originate from and never provide information to an unknown address. Basic efforts to train your employees can prevent unnecessary exposure and breaches. 

Thinking your business is too small to attract attention from hackers? Think again! A report from Norton says that 88% of businesses face at least some form of phishing attack. 

Back Up Your Data

Regularly back up your data to a secure location to prevent data loss due to cyber-attacks or system failures. While it may feel like a tedious task each week, the importance of backing up your essential data cannot be overstated. If you use an IT services provider, or if you have Microsoft Office 365, backing up your data can be a very simple process. Use the cloud option to safely back up all the data you choose. 

Implement Access Controls

Use role-based access controls to limit access to sensitive data. This ensures that only authorized personnel can access sensitive data. In the event of a breach, it also allows your IT team to trace the breach back to the original source. Not everyone needs access to every piece of information within the organization, especially the more you scale. Using role-based access will limit your risk of exposure and help keep your data more secure. 

Cyber Insurance

Cyber Insurance can be a valuable addition to your business’s coverage. ​​Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers and health records.

Add a Password Manager

Remembering and keeping track of multiple different passwords can be a logistical nightmare, but it can also be a security hazard. Losing passwords can not only be a snag for your team, but it can also mean that they are vulnerable to compromise. To avoid this, we recommend using a password manager. These managers encrypt and store your saved passwords, help generate strong passwords for each new account you have, allow you to easily change them at any time, and give your team a safe and secure way to share them as well. 

Compliance Is Key

Stay up to date with industry regulations and standards such as PCI DSS, HIPAA and NYDFS. For any business that utilizes data, it is their responsibility to make sure they are compliant within the regulations. Here is a brief overview of some of the major regulations. A more exhaustive list can be found here. 

• PCI DSS - Payment Card Industry Data Security Standard is a set of regulatory standards that ensures all organizations maintain a secure environment for credit card information. To be compliant, organization compliance must be validated annually.
  
  
• HIPAA - The Health Insurance Portability and Accountability Act, commonly known as HIPAA, is a law that ensures the confidentiality, availability and integrity of PHI.
  
  
• NYDFS - This regulation was set forth by the New York Department of Financial Services (NYDFS) in 2017. It establishes cybersecurity requirements for any financial services providers that may or may not reside in NY. Some basic principles outlined in this regulation are risk assessments, documentation of cybersecurity policies and assigning a chief information officer (CIO) for compliance program management.

Continued Vigilance

Data security and compliance is an ongoing process. It's important to continuously monitor your systems and update your security protocols to adapt to new threats. Regularly conduct security audits and penetration testing to identify vulnerabilities and address them promptly. 

While there is no perfect solution to keeping your data safe, the best practices outlined above will give you a definite head start. The most effective solution will always be a combination of safeguards and enhanced vigilance from your IT team. 

If your organization needs help understanding more about data security and best practices, Brewster Consulting Group is ready to help walk you through your options. Our team of experts can analyze your specific needs and help point you in the direction you want to grow. 

Set up a consultation and let us walk you through our solutions to data governance and recommendations for keeping your security sharp and efficient. Whether it involves pointing your team in the right direction, or building entire solutions for a business, we’re happy to help. Together, we can foster positive business decisions that lead to more security, more growth, and more revenue. 

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