Compliance is no longer optional for businesses looking to thrive in today’s dynamic and high-risk environment. Companies need to treat achieving and maintaining compliance as a core business priority since it impacts all aspects of a business, from operations to customer trust and partnerships. In our recent webinar, John DePerro, Kaseya’s VP of FedRAMP and Compliance Solutions, shared his insights on why making strategic investments in compliance is a smart choice to stay ahead of changing regulations and ensure long-term success.

“Compliance is not going away,” said John DePerro. “More standards, requirements and frameworks are coming down the pike and we’re going to start seeing them rolling out next year.”

Governance, risk and compliance: What’s the difference?

Understanding the distinctions between governance, risk and compliance (GRC) and the unique role that each play in the success of the business is vital for smart risk management.

• Governance: Establishing policies and frameworks to guide organizational decisions and operations.
• Risk: Identifying, assessing and mitigating potential threats to business objectives.
• Compliance: Adhering to legal, regulatory and industry standards to protect the business and its stakeholders.

Over the past year, compliance landscapes have experienced major shifts, fueled by new regulations, increasing lawsuits and a rising prevalence of class-action suits.

Compliance has taken on a new importance in vendor management

Cyber due diligence has become a cornerstone of modern vendor management, reflecting the growing importance of trust and security in business partnerships. As organizations increasingly rely on third-party vendors and collaborators, potential business partners and customers need to feel confident that working with an organization won’t expose them to legal, financial or security risks.

“Cyber due diligence is a critical part of vendor management now,” said DePerro. “Historically, businesses would just get an Excel sheet of questions with controls, and we just say yes to everything and move on. The good customers have stopped accepting that. They want to see that you can demonstrate what you’re doing.”

Potential customers and business partners may consider these factors when evaluating an organization’s attitude toward security and compliance:

• Pending lawsuits: Legal entanglements can signal operational instability or unresolved conflicts, which may deter partners from associating with your business.
• Intellectual property and patent ownership: Demonstrating clear ownership of your intellectual assets reinforces your credibility, ensuring that no disputes over patents or trademarks could disrupt business operations.
• Clean cybersecurity history: A proven track record of avoiding data breaches or significant cyber incidents highlights your commitment to robust security practices, giving partners peace of mind.
• Compliance adherence: Strict adherence to industry regulations, such as GDPR or HIPAA, demonstrates your accountability and reduces the risk of regulatory penalties for all parties involved.
• Reputation and risk management: Proactively avoiding high-risk partnerships and maintaining a strong reputation for cybersecurity and ethical practices ensures your business is seen as a dependable ally in the marketplace.

Addressing these areas through thorough cyber due diligence not only positions a business as a reliable and attractive partner but also strengthens trust, paving the way for long-term, mutually beneficial business and customer relationships.

Compliance is critical for preventing bad legal and insurance outcomes

Small and medium-sized businesses (SMBs) are increasingly targeted because larger enterprises have bolstered their defenses. Scalable, automated attacks make it easier for threat actors to exploit SMB vulnerabilities. Demonstrating compliance is essential to mitigating these risks and ensuring business continuity.

Compliance also plays a pivotal role in insurance and legal preparedness. Insurers now probe deeply into a company’s risk profile, assessing whether your organization adheres to industry standards to achieve or maintain coverage. In the event of a data breach or successful cyberattack, non-compliance, especially in regulated industries like healthcare, can lead to accusations of negligence following a breach. Without the ability to demonstrate compliance, businesses risk having cyber insurance claims denied and getting mired down in costly lawsuits.

Big changes are on the horizon for 2025

Several regulatory updates are expected in 2025, and they will reshape compliance requirements in many industries. Some expected shifts include:

• CMMC changes: New updates are expected to affect cybersecurity maturity models.
• CFR 32: Set to go live in January, introducing terms like “security protection assets” and “security protection data.”
• HIPAA updates: Proposed changes to the security rule will modernize compliance in response to evolving technology. States are also enacting independent healthcare compliance laws.
• Department of Justice actions: New regulations will address data transfers to high-risk countries, especially as concerns grow over the use of private data to train AI models.

Compliance is an opportunity, not a roadblock

Compliance is often viewed as a stressful, complicated problem to be overcome. However, it is important that IT professionals reframe the way they think about compliance.

“Compliance is not a problem; compliance is an opportunity,” said DePerro.

When managing compliance, IT professionals gain valuable data that can be used to identify gaps that could lead to major problems and inspire cultural change. The data gathered can help create a compelling case for securing the budget and resources needed to build a stronger, more secure organization. By embracing compliance as an opportunity, IT professionals can play a vital role in positioning businesses for sustained success in an increasingly complex cybersecurity and regulatory landscape.

Smart automation simplifies compliance

Compliance Manager GRC offers everything that IT professionals need to mitigate risk, reduce costs and guide businesses into alignment with compliance requirements efficiently and affordably. Smart automations and thoughtful design ensure that Compliance Manager GRC makes an IT professional’s job easier without breaking the bank.

Highlights include:

• Ease-of-use that makes it a snap for even non-technical compliance stakeholders.
• Automated data collection from LAN, Cloud and individual devices.
• Access to dynamic, customizable libraries of controls, requirements, standards and policy and procedure templates
• Vendor risk management portals for third-party assessments.
• Employee training tracking to meet compliance requirements.
• Regulations and controls to assess common standards, including HIPAA, NIST CSF, CMMC, NY DFS, Cyber Liability Insurance, GDPR, Cyber Essentials and Essential 8, with more added constantly.
• A consolidated dashboard that allows users to view the progress of assessments, regardless of the type of assessment being managed.

Compliance Manager GRC includes an array of powerful features designed to deliver the IT security assurance required by any organization. Our continuous innovation process helps ensure that IT professionals can handle the demands of the ever-expanding IT security and regulatory environment.

Let us show you how Compliance Manager GRC can transform compliance for you with a personalized demo. Request a demo today.