Mastering Compliance with an MSP
Regulatory compliance is an ongoing challenge, particularly for small and medium-sized businesses (SMBs). The compliance industry is booming, with the global market for enterprise governance, risk, and compliance (eGRC) valued at $54.61 billion in 2023 and growing at a 13.8% annual rate.
For SMBs, this means compliance is becoming more complex and resource-intensive. Just as many SMBs turned to external help for cybersecurity, the same trend is now happening with compliance management. It’s becoming too intricate for most businesses to handle in-house.
Enter Managed Service Providers (MSPs). MSPs, who have already proven their worth in cybersecurity, are now stepping up to manage compliance needs. They offer a valuable solution to navigating the complexities of regulatory requirements.
Before we explore how MSPs can assist with compliance (spoiler: they offer substantial benefits!), let’s first grasp why compliance is crucial and why it should never be ignored.
Why Compliance Matters
Compliance isn’t optional—it’s a must. Ignoring it can lead to severe financial and legal repercussions. For example:
- HIPAA Violation:$100 to $50,000
- CCPA Violation:$7,500 per intentional violation; $2,500 per unintentional violation
- SOX Violation:Up to $5 million and 20 years in prison
- PCI DSS Violation:$5,000 to $100,000 per month
Non-compliance can also lead to costly lawsuits, and research shows that non-compliance costs 2.71 times more than maintaining compliance. A solid compliance posture not only avoids penalties but also reassures customers about your commitment to data protection.
However, keeping up with regulatory requirements is challenging. In fact, 74% of organizations view compliance as a burden. Let’s explore why compliance is particularly tough for small and medium-sized businesses.
Compliance Challenges
Compliance isn’t just about ticking boxes—it’s an ongoing commitment. Here’s why it’s so challenging:
- Expertise Shortage:Compliance requires specialized knowledge and resources that many SMBs lack. For instance, HIPAA demands rigorous security measures, making compliance a full-time job in itself.
- High Costs:Training and equipment for compliance are costly. A National Association of Manufacturers (NAM) study found SMBs with fewer than 50 employees face an average compliance cost of $14,700 per employee annually.
- Maintenance:Compliance requires continuous effort and detailed documentation. The regulatory landscape is constantly evolving with updates like the NIST Cybersecurity Framework (2013), DFARS (2015), and CMMC 2.0 (2021), plus state-specific regulations such as CCPA (2018) and UCPA (2023).
- Proving Compliance: Beyond achieving compliance, you need to prove it during audits. This involves maintaining a detailed audit trail, which varies by regulation.
How MSPs Can Help
MSPs are well-equipped to handle these compliance challenges. Here’s how:
- Assessments:MSPs evaluate your IT environment and provide a roadmap to compliance.
- Documentation & Automation:They use advanced tools to automate documentation and simplify audits.
- Security:MSPs bolster security with the latest solutions and help with data recovery plans.
- Efficiency & Productivity:By managing compliance, MSPs allow you to focus on your core business.
- Proactive Support: They stay current with regulatory changes, ensuring you remain compliant.
Looking Ahead
The digital landscape is rapidly evolving. Staying compliant is about more than avoiding penalties—it’s about adapting to changes, combating cyber threats, and remaining competitive.
For expert guidance on compliance, reach out to The 20 MSP. We’ve assisted thousands of organizations with both cybersecurity and compliance, and we’re here to help you too. Schedule a call with The 20 MSP today to begin your journey toward compliance and peace of mind.