Managing Technology Risk Through Strong Compliance and Controls
- Mar 31, 2023
In a Solutions Insight session from March of 2023, the EisnerAmper Digital Team shared how companies are embracing technology to stay relevant and competitive and discussed leading practices for governing risk and keeping pace with the evolving regulatory landscape amid increasing government oversight.
Ransomware can affect everyone, from multi-national organizations to small businesses. In the U.S. alone, the average data breach cost is about $9 million, and for small- to medium-sized companies, this could mean closing their doors. Keeping up with the pace of technology is an ongoing challenge as regulations evolve, and with increasing government oversight and expanding regulations, it's imperative for firms to manage technology risks through strong compliance and controls.
Expanding Regulations and Government Oversight
Organizations have been concerned about cybersecurity risks for a long time, and after significant data breaches over the last few years, they’re much more focused on privacy. Many states in the U.S. and other countries have adopted legislation to protect consumer privacy, and businesses operating in multiple states or nations will have to comply with different regulations in each jurisdiction. While large enterprise institutions understand their compliance requirements, they may have unique security requirements for each business entity, making it challenging to look at the overall compliance framework from a holistic perspective and remain both innovative and compliant. Organizations in all industries risk fines and penalties if they haven't done enough to protect consumer information and other sensitive data.
Leading Practices for Managing Technology Risks
There are cyber risks that companies may be unable to avoid, such as ransomware, malware, spearfishing, and business email compromise, so it's critical to plan to respond to a breach. Analyze your business's current risks and threats and strategize how you will mitigate those observed risks with a plan that encompasses your people, processes, and technologies. Next, consider your capabilities: do you have the resources to manage and address these risks? You may have internal talent to apply mitigating controls routinely or you may need outside expertise to help.
No matter the size of an organization, there are some basic controls that every company should implement to mitigate technology risks, such as multifactor authentication, encrypting data, backing up data, applying patches for security vulnerabilities, and performing periodic security awareness and phishing tests. Various tools and technologies can help companies manage and automate compliance and collaborate with security and business stakeholders. These tools aren't one-size-fits-all and should be tailored to a business's needs; it's a balancing act to determine which framework makes the most sense.
In the end, you can only sell your product or service if you comply with government regulations. Outside companies can help you obtain additional certifications, assessments, and audits to help your business protect its data and comply with privacy laws. However, it takes the continuous effort of the organization to maintain compliance and diligence to bring in the right expertise. Whether you're an early-stage startup or a large enterprise, you can find a solution that satisfies your business's needs.
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Kate M. Siegrist
Kate Siegrist is a Partner with over 20 years of combined experience advising CEOs, CISOs and CIOs. She helps her clients navigate highly regulated industries to ensure business opportunities are not missed due to compliance burden.
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