It is only in the past five years that digital has started to become more regulated, and with this has come a range of compliance legislation that businesses need to come to grips with.
By Ryan Boyes, governance, risk and compliance Officer at Galix
For many businesses, this has involved a significant transition, as it has always been unclear as to whose responsibility data is – is it HR’s problem to safeguard, and is financial data the sole responsibility of the finance team? The reality is that all data touches every part of modern business, and cybersecurity needs to be a top priority as part of an overall compliance strategy.
The security of information is a business imperative, and it has become essential to apply compliance logic to the management of data as part of comprehensive cybersecurity.
What is compliance logic?
Compliance logic refers to the set of rules, procedures, and controls that organisations put into place to ensure they adhere to laws, regulations, and standards, as well as internal policies.
It is a key component of good corporate governance, and as information security has become increasingly important, it is also essential in effective data governance. It applies to organisations across industries but is of even greater importance for businesses in financial services, healthcare, manufacturing, and technology, as regulatory requirements are often stringent and complex.
Compliance logic requires businesses to identify and understand the laws and regulations that apply to them and then develop and maintain internal policies and procedures that align with both regulatory requirements and industry standards to mitigate compliance risks.
It is essential to also continuously monitor activities and conduct audits to ensure ongoing compliance, as well as to maintain accurate records and documentation to demonstrate compliance and support audit processes. Training and awareness also need to form part of compliance logic to educate all parties on relevant regulatory requirements and the importance of adhering to them.
Compliance in a South African context
The key regulations from a South African-specific point of view are the Protection of Personal Information Act (PoPIA), the Promotion of Access to Information Act (PAIA), and the Cybercrimes Act. These all relate to both IT and information management as well as sound data governance, and they need to be embedded in an organisation’s overall compliance strategy.
However, compliance with legislation should never be solely about meeting regulatory obligations; there are a number of other good reasons why compliance logic needs to be a priority. If a business fails to have the correct systems in place and suffers an incident that amounts to a compliance breach, the consequences go beyond the legal penalties, which include financial and other penalties.
There is also a significant element of reputational damage, which can cause customer attrition and can make a business less attractive to partners and third parties in the value chain. No business wants to be the weakest link in the chain, so it is important to have the systems and processes in place to address compliance effectively.
Bringing in an expert
Implementing and maintaining effective compliance measures as part of a comprehensive data governance and cybersecurity strategy can be a complex and overwhelming task for many businesses. In addition, while compliance requirements apply to organisations of all sizes, many simply cannot justify having an in-house chief information security officer (CISO).
Managed service providers can prove invaluable, as they can offer a variety of solutions depending on business requirements, from CISO-as-a-Service to managed governance, risk and compliance, and more.
Expert managed service providers not only offer broad and deep experience and skills gained from a variety of customers across industries, but they can also assist in determining the scope of requirements and implementing practical, approachable steps.
Compliance can seem like a large, cumbersome exercise, but working with a managed service provider partner can help businesses to start small and align to a relevant framework to guide further steps. This can help to expedite processes and productivity and end up saving businesses money in the long term.
Importantly, however, it is vital to ensure that the knowledge, competency, and habits required to embed compliance logic are permeated throughout the organisation and a culture of compliance is created.
Having tools in place is only part of the picture; there needs to be awareness and understanding of why tools and processes are necessary in the first place. This requires education and ongoing awareness, as well as buy-in from top levels of the organisation, and someone to champion governance and compliance logic.