Chief Information Security Officers (CISOs) already have a lot on their plate, don’t they? From routine audits to managing IT risks within the company, they seem to be at the forefront of the company’s information security hull, sailing it towards safety and revenue increase. Managing compliance is one of the key responsibilities a CISO undertakes, with the EU-mandated General Data Protection Regulation (GDPR) compliance often taking the helm.

Even as the central accountability lies with the CISO, GDPR compliance requires unanimous support and collaboration of all functions within the organization. But more than support, the leadership across functions, including the Chief Financial Officer (CFO), Chief Revenue Officer (CRO), and Chief Marketing Officer (CMO) are reliant on being GDPR compliant, making it a core part of their agenda.

CISO – IT security compliance

One of the pivotal statements that GDPR aims to make is that Information Privacy is now considered a Human Right (Article 8). A CISO is responsible for developing and implementing information security programs and policies. CISO also responds to data breaches and other security incidents. The CISO also anticipates, assesses, and actively manages any emerging threats. By the virtue of his role, a CISO is the ultimate owner of GDPR compliance in an organization.

CFO – Financial risk management

Any organization that does business through website, email, online marketing, cloud-based, or a SaaS solution, comes under the jurisdiction of GDPR. GDPR non-compliance can be expensive, with fines that can go up to 4% of the previous year’s annual global turnover or €20M, whichever is higher. Thus, non-compliance becomes a financial risk. CFOs have to actively identify, manage and mitigate risks, bringing GDPR non-compliance high on their agenda. When organizations treat non-compliance as a financial risk, they can only take appropriate steps to instill GDPR adherence.

CMO – Impact on brand image

GDPR did not come out of the blue and was the answer to data privacy-related concerns among EU residents. But a wise Marketing Head will see it as an opportunity to create a positive public image for the company. As per Cisco Consumer Privacy Survey 2021, 86% of participants across the 12 countries (5 Europe, 4 Asia Pacific, and 3 Americas) cared about their data privacy. Meanwhile, 79% said that they are willing to take measures to protect it. Thus, GDPR non-compliance will erode the trust of EU-based consumers and consumers worldwide in the brand.

CRO – Trust builder among businesses

It is not presumptuous to assume that companies generally don’t deal with other companies or countries actively or passively committing Human Rights violations. Worldwide corporations pulling back from Russia due to the Ukraine-Russia Crisis is a great example. Thus, GDPR compliance helps instill trust in credit amongst corporations, business partners, and customers. Even remote associations with companies can bind financial risks. So Chief Revenue Officers (CROs) should treat GDPR compliance as an opportunity to gain trust points with business partners and B2B customers.

GDPR compliance as an investment

Due to these reasons, GDPR compliance becomes not a liability but an investment. Such an investment can be made on behalf of the company and benefit it in the long run. You can start implementing GDPR compliance through any of the following ways.

In-house teams

Large organizations typically build a dedicated in-house team for GDPR compliance compatible with their complex business operations.

Consultants

Enterprises struggling to build the right capability in-house, either due to lack of right resources or bandwidth constraints, outsource to consultants with expertise in the domain to actively manage GDPR compliance.

Infosec compliance companies

Perhaps the best choice for medium and small businesses is to automate their GDPR compliance requirements through compliance automation software. Such companies go beyond GDPR compliance and cover adherence to other security standards like SOC 2 and ISO 27001 at the same time.

Scrut Automation is an innovative and radically simple governance, risk, and compliance automation platform for growing startups and mid-market enterprises. With Scrut, compliance teams can reduce ~70% of their manual effort in continuously maintaining compliance towards SOC 2, ISO 27001, GDPR, PCI DSS, HIPAA, and CCPA. Schedule your demo today to see how it works.

81% of the respondents in the Cisco 2022 Consumer Privacy Survey agreed with the statement, “I believe the way a company treats my personal data is indicative of the way it views me as a customer.” The same survey indicated that 89% of respondents cared about data privacy and having more control over their data. As a SaaS vendor, you must follow compliance standards and do your best to protect customer data.

Compliance increases customer trust

When you have compliance certificates and follow the regulations set by the government, your data will be much more secure. To inform your customers, you can display your compliance certificates on your website, social media, and sales materials. 20% of customers believe that if vendors follow the laws, they can trust them more. The following figure shows how customers prioritize security:

43% of customers don’t trust organizations to follow standard policies (Cisco). So if you want to earn consumer trust, you can have your organization audited for compliance by a third party and publicize that certificate. 

Compliance decreases third-party risks

Being compliant with relevant standards can help you evaluate your information systems thoroughly. You can know and patch your vulnerabilities before achieving the certification. It gives you a clearer picture of your information security. Patching your vulnerabilities in time can reduce your risks drastically.

Secondly, when you follow compliance standards, they mandate periodic audits of your information system. This will keep you on your toes, but on a positive note, it will help you keep your systems up-to-date. 

Lastly, compliance forces you to follow specific procedures while carrying out routine activities. These procedures are designed to improve the security of your information. It helps you keep cybercriminals at bay.

Compliance can help avoid fines and penalties

If your systems are breached, and it is found that you have not followed specified processes, you will have to bear the fines and penalties laid down by regulatory bodies. These fines can be extremely taxing for your business. For example, Meta-owned Instagram was found guilty of not maintaining children’s privacy and was asked to pay an enormous GDPR fine of €405 million towards the end of 2022. 

Compliance boosts an organization’s reputation

An average of 37% of consumers switched organizations after a breach (Cisco). It is a direct indication that if your organization is breached, your reputation will suffer, and so will your turnover. It is imperative that you maintain the highest level of security and compliance standards if you want to retain consumers. 

Additionally, compliance can certainly attract new clients. If your organization has a reputation for securing client data, more and more customers will be attracted to you. SaaS vendors deal with a lot of consumer data, and being a service provider, a large percentage of their customers will come from referrals by the old ones. Keeping their data safe and reputation impeccable will lead a business to newer heights.

Compliance improves an organization’s efficiency and effectiveness

Compliance ensures that the policies and procedures followed in the organization are well-designed. Therefore, the operations of the organization will be efficient. No job will be duplicated, and there won’t be a lag in data transfer.

Plus, the organization might not be breached, and thus the time and efforts spent in recovery will be utilized efficiently.

Winding up

With infosec compliance solutions like Scrut, SaaS companies have the opportunity to eradicate the laborious and error-prone aspects of compliance tasks and implementation. Infosec compliance empowers SaaS companies to efficiently oversee multiple security compliance requirements through a unified dashboard. This has the potential to revolutionize how SaaS companies address data and privacy protection policies, ensuring that essential standards are met while optimizing the user experience. 

If you’re interested in discovering more about Scrut’s services, don’t hesitate to schedule a demo today!

FAQs

In the latest Global Threat Report 2023, CrowdStrike reported that the breakout time of eCrimes decreased from 98 minutes in 2021 to 84 minutes in 2022. Breakout time is the time taken by a threat actor to move laterally, from the initial compromised host to another host, within the victim’s environment. 

The defenders can defend themselves by responding to the attack within that time window to minimize the effects of the attack. As the breakout time decreased to 84 minutes, the security teams were encouraged to follow the 1-10-60 rule. One minute to detect the threat, 10 to understand it, and 60 minutes to respond to the threat.

A quick response is only possible if the security posture of the company is flawless. So what is the security posture of the company, and how do you evaluate it?

What is security posture?

The National Institute for Standards and Technology ( NIST) describes security posture as: “The security status of an enterprise’s networks, information, and systems based on information security resources (e.g., people, hardware, software, policies) and capabilities in place to manage the defense of the enterprise and to react as the situation changes.”

Security posture refers to the overall capacity of the company to predict, prevent, and respond to the evolving cyber threat landscape. The awareness of the cybersecurity posture of the company requires technical, operational, business, and external factors. 

What are the components of security posture?

The following three components are interconnected and must work in harmony to create a strong security posture. For example, people need to follow established processes, and technology is often used to automate and enforce these processes. Regular assessment and continuous improvement of each component are essential to adapt to evolving security threats and challenges. Additionally, compliance with relevant regulations and standards, such as GDPR or ISO 27001, can help guide and enhance an organization’s security posture.

1. People

People are a crucial component of any security posture. This includes employees, contractors, and even third-party vendors who have access to an organization’s systems and data. Security awareness training and education for employees are essential to ensure that they understand their roles and responsibilities in maintaining security. Additionally, having a security team in place to monitor and respond to security incidents is vital.

2. Processes

Security processes refer to the established procedures and policies that govern how an organization manages and protects its assets, data, and systems. These processes can include incident response plans, access control policies, data encryption policies, and more. Effective processes help ensure consistency and compliance with security best practices.

3. Technology

Technology encompasses the tools and solutions an organization uses to protect its systems and data. This can include firewalls, antivirus software, intrusion detection systems, encryption tools, and other security technologies. The choice and configuration of these technologies should align with the organization’s security goals and policies.

Why assess your security posture?

Assessing your security posture is a critical practice for organizations to ensure they can protect their assets, comply with regulations, maintain customer trust, and effectively manage security risks. Here are some key reasons why assessing your security posture is essential:

1. Identifying vulnerabilities

Regular security assessments help organizations identify vulnerabilities in their systems, processes, and technology. This proactive approach allows them to discover weaknesses before cybercriminals do, reducing the risk of data breaches and other security incidents.

2. Regulatory  compliance

Many industries and regions have specific regulations and compliance requirements related to data security and privacy (e.g., GDPR, HIPAA, PCI DSS). Assessing your security posture helps ensure that you are meeting these regulatory obligations, which is crucial to avoid legal penalties and fines.

3. Protecting assets and data

Assessments help organizations protect their valuable assets, including sensitive data, intellectual property, and customer information. By understanding potential risks and vulnerabilities, organizations can implement safeguards to prevent unauthorized access or data breaches.

4. Reputation and customer trust

A strong security posture contributes to a positive reputation and fosters customer trust. Customers and clients are more likely to do business with organizations they believe will protect their data and privacy. Security breaches can lead to significant damage to an organization’s reputation and customer trust.

5. Cost savings

Identifying security weaknesses early can lead to cost savings in the long run. It’s often more expensive to respond to a security incident after it has occurred than to invest in preventive measures and security assessments upfront.

6. Continuous improvement

Security assessments are not one-time activities. They are part of an ongoing process of security management. Regular assessments help organizations continuously improve their security posture by adapting to new threats and technologies.

7. Risk management

Assessing security posture allows organizations to assess and manage risk effectively. By understanding where vulnerabilities exist and the potential impact of security incidents, organizations can make informed decisions about risk mitigation strategies.

8. Business continuity

Ensuring a robust security posture is crucial for business continuity. Cyberattacks or security incidents can disrupt operations, leading to financial losses. Assessing and enhancing security helps maintain business continuity and resilience.

9. Competitive advantage

A strong security posture can also serve as a competitive advantage. Organizations that can demonstrate their commitment to security may have an edge over competitors, especially when dealing with security-conscious customers or partners.

In summary, assessing your security posture is a fundamental practice for organizations to protect their assets, comply with regulations, maintain customer trust, and effectively manage security risks.

Steps to evaluate your security posture

1. Security policy review

• Document review: Examine your organization’s security policies and procedures to ensure they are up-to-date and align with current best practices and regulatory requirements.
• Policy effectiveness: Assess the effectiveness of your security policies in practice, considering how well they are followed and whether they adequately protect your assets.

2. Risk assessment

• Identifying risks: Identify potential security risks and vulnerabilities within your organization, including threats to data, systems, and physical assets.
• Risk prioritization: Prioritize identified risks based on their potential impact and likelihood, helping you focus on the most critical security issues.

3. Vulnerability scanning

• Identifying weaknesses: Conduct regular vulnerability scans and assessments to pinpoint weaknesses in your systems, applications, and network infrastructure.
• Patch management: Develop a strategy for addressing and patching vulnerabilities promptly to reduce the window of opportunity for attackers.

4. Security awareness and training

• Employee training: Provide security awareness training to educate employees about security best practices, threats, and how to respond to incidents.
• Phishing tests: Test employees’ susceptibility to phishing attacks through simulated phishing campaigns to identify areas for improvement.

5. Incident response plan evaluation

• Incident simulation: Test your organization’s incident response plan through simulations of various security incidents to evaluate its effectiveness.
• Plan updates: Continuously update and refine your incident response plan based on lessons learned from simulations and real incidents.

6. Access control and authentication review

• User access auditing: Continuously update and refine your incident response plan based on lessons learned from simulations and real incidents.
• Multi-factor authentication:  Implement multi-factor authentication (MFA) wherever possible to enhance authentication security.

7. Network and perimeter security assessment

• Firewall and intrusion detection: Evaluate the configuration and effectiveness of your firewalls and intrusion detection systems to protect against external threats.
• Security of remote access: Ensure that remote access methods are secure and that remote workers follow secure access practices.

8. Data protection assessment

• Data encryption: Implement encryption measures to protect sensitive data both in transit and at rest, and assess the effectiveness of existing encryption mechanisms.
• Data backup and recovery: Regularly back up critical data and test data recovery processes to ensure business continuity in case of data loss or ransomware attacks.

Tools and resources for security posture assessment

When conducting a security posture assessment, it’s important to leverage various tools and resources to ensure a comprehensive evaluation. Here are some essential tools and resources:

1. Security assessment tools

• Vulnerability scanners: Tools like Nessus, Qualys, and OpenVAS can help identify vulnerabilities in your systems and networks.
• Penetration testing tools: Tools such as Metasploit, Burp Suite, and Nmap are used by ethical hackers to test the security of systems and applications.
• Security information and event management (SIEM) systems: SIEM solutions like Splunk and ELK Stack can help monitor and analyze security events and incidents.
• Security assessment frameworks: Frameworks like OWASP (Open Web Application Security Project) provide guidance and tools for web application security testing.

2. Third-party assessors

• Penetration testers: Independent security experts or firms can conduct penetration tests to evaluate your organization’s security by simulating attacks.
• Certification and compliance auditors: Organizations may hire third-party auditors to assess compliance with specific regulations or standards, such as PCI DSS or ISO 27001.
• Red team assessors: Red teams are groups of skilled security professionals who simulate real-world attacks to test an organization’s defenses.

3. Industry standards and frameworks

• ISO 27001: This international standard provides a framework for information security management systems (ISMS) and is widely recognized for establishing security best practices.
• NIST cybersecurity framework: Developed by the U.S. National Institute of Standards and Technology, this framework offers guidance for improving cybersecurity risk management.
• CIS critical security controls: The Center for Internet Security (CIS) provides a set of best practices to help organizations enhance their security posture.
• PCI DSS: The Payment Card Industry Data Security Standard is essential for organizations that handle credit card data.

4. Security consulting services

• Security consultants: Security consulting firms or individuals can provide expertise in security strategy, risk assessment, and overall security program development.
• Incident response services: In the event of a security incident, incident response consulting firms can help organizations investigate, contain, and recover from the incident.
• Security architecture review: Consultants can assess and recommend improvements to an organization’s security architecture and infrastructure.

Analyzing assessment results

Analyzing assessment results is a crucial step in the security posture assessment process. It involves reviewing the data collected during assessments and making informed decisions about how to address security issues. Here are the key steps in analyzing assessment results:

1. Data interpretation

Begin by carefully reviewing all the data collected during the assessment, which may include vulnerability reports, security logs, audit findings, and assessment reports. Interpret the data to understand the security posture accurately, identifying areas of strengths and weaknesses.

2. Identifying critical issues

Prioritize security issues based on their severity and potential impact on the organization. Critical issues may include vulnerabilities that are actively exploited, misconfigurations that expose sensitive data, or high-risk threats. Distinguish between issues that require immediate attention and those that can be addressed over time.

3. Prioritizing remediation

Develop a clear and structured process for prioritizing the remediation of identified security issues. Consider factors such as the potential impact of each issue, the ease of exploitation, the relevance to the organization’s assets, and any regulatory or compliance requirements. Additionally, create a risk matrix or scoring system to assist in prioritization.

4. Creating an action plan

Develop a comprehensive action plan that outlines the steps required to address each identified security issue. Assign responsibilities to individuals or teams for each remediation task. In addition, set clear timelines and deadlines for completing remediation efforts. Also, consider implementing short-term mitigations for critical vulnerabilities while more comprehensive solutions are being developed.

Throughout the analysis process, it’s essential to involve key stakeholders, including IT teams, security professionals, and management, to ensure that everyone is aligned on the priorities and actions needed to improve the security posture. Regular communication and monitoring are critical to tracking progress and adapting the action plan as necessary.

Remember that security posture assessment is an ongoing process. After remediation efforts are completed, it’s important to conduct follow-up assessments to verify that the issues have been adequately addressed and to identify any new security concerns that may have arisen. This iterative approach helps organizations continuously improve their security posture and adapt to evolving threats.

Implementing security improvements

Implementing security improvements is a crucial step in enhancing your organization’s security posture. Here are key elements and strategies for effectively implementing security improvements:

1. Remediation strategies

• Patch management: Regularly apply security patches and updates to software, operating systems, and firmware to address known vulnerabilities.
• Vulnerability remediation: Prioritize and remediate vulnerabilities based on their severity and potential impact. Implement fixes or mitigations for identified weaknesses.
• Configuration management: Review and improve the configuration of systems and network devices to minimize security risks, such as unnecessary open ports or weak access controls.
• Access control: Enhance access controls by implementing the principle of least privilege (PoLP) to restrict users and systems’ access to only what is necessary for their roles.
• Data encryption: Encrypt sensitive data at rest and in transit to protect it from unauthorized access.
• Multi-factor authentication (MFA): Implement MFA for critical systems and accounts to add an extra layer of security.
• Incident response plan: Ensure that your incident response plan is updated and tested regularly, and that all staff are familiar with their roles and responsibilities during security incidents.

2. Employee training and awareness

• Conduct regular security awareness training for employees to educate them about security best practices, social engineering threats, and recognizing phishing attempts.
• Provide training specific to employees’ roles and the security policies and procedures relevant to their job functions.
• Test and measure the effectiveness of training through simulated phishing exercises and security quizzes.

3. Continuous monitoring

• Implement continuous security monitoring solutions to detect and respond to security incidents in real-time.
• Monitor network traffic for unusual patterns or signs of malicious activity.
• Utilize intrusion detection and prevention systems (IDS/IPS) to identify and mitigate threats.
• Employ Security Information and Event Management (SIEM) systems to aggregate and analyze security event data.

4. Incident response plan

• Ensure that your incident response plan is ready for activation in case of a security incident.
• Establish clear communication channels and escalation procedures for reporting and responding to incidents.
• Regularly conduct tabletop exercises or simulations to test and improve the effectiveness of your incident response procedures.

5. Audit and compliance

• Conduct regular security audits to ensure ongoing compliance with security policies, standards, and regulations.
• Engage third-party auditors if necessary to assess and validate your security controls.
• Document audit findings and take corrective actions to address any non-compliance issues.

6. Documentation and documentation review

• Maintain thorough documentation of security policies, procedures, and remediation activities.
• Review and update documentation regularly to ensure it remains current and relevant to evolving security threats and organizational changes.

Maintaining ongoing security posture assessment

Maintaining ongoing security posture assessment is critical to ensure that your organization remains resilient against evolving threats and compliant with changing regulations. Here are key considerations for this ongoing process:

1. Regular assessments

• Conduct security assessments and audits at regular intervals, such as annually or quarterly, to continuously evaluate your security posture.
• Perform vulnerability assessments and penetration testing to identify and remediate security weaknesses.
• Regularly review and update security policies, procedures, and incident response plans to reflect changes in technology and threat landscape.

2. Evolving threat landscape

• Stay informed about emerging cybersecurity threats and vulnerabilities by monitoring security news, threat intelligence feeds, and industry reports.
• Adapt security measures and controls to address new and evolving threats. This may involve revising security policies, adding new security technologies, or enhancing employee training programs.
• Consider threat hunting and proactive threat detection techniques to identify threats before they can cause significant harm.

3. Regulatory changes

• Keep abreast of changes in relevant regulations and compliance requirements that affect your industry or region.
• Adjust security practices and policies to align with new regulatory requirements, ensuring that your organization remains in compliance.
• Engage legal or compliance experts when necessary to ensure that your organization’s practices meet legal standards.

In addition to these considerations, fostering a culture of security awareness among employees is crucial. Encourage a proactive approach to reporting security incidents or potential threats and provide ongoing security training and awareness programs.

Regularly communicate the importance of security to all employees and stakeholders, emphasizing that security is a shared responsibility. By maintaining a strong security posture through ongoing assessment and adaptation, organizations can better protect their assets, data, and reputation in an ever-changing threat landscape.

Conclusion

Assessing your security posture is crucial for various reasons, including identifying vulnerabilities, compliance, asset protection, and customer trust. Key steps involve policy review, risk assessment, vulnerability scanning, employee training, incident response planning, access control review, network security assessment, and data protection review.

Once assessments are done, interpret results, prioritize critical issues, and create an action plan. Implement improvements, such as patch management, employee training, monitoring, and robust incident response.

Maintaining ongoing security posture assessment is vital. Regular assessments, staying updated on emerging threats, adapting to regulations, and promoting a security-aware culture are essential practices.

By prioritizing and continually investing in security posture, organizations can better mitigate risks and maintain trust in an ever-changing cybersecurity landscape.

Take control of your compliance journey with Scrut. Schedule a demo today to see how we can streamline your compliance processes and ensure peace of mind.

FAQs

The SOC 2 audit process can be intimidating. It is definitely time-consuming, resource-intensive, and expensive. However, it does not need to be so complicated if the right legwork is done. One of the key aspects of SOC 2 is to have the right policies in place to protect customer data. If done right, and adhered to diligently, this can save an organization a significant amount of time and money during the audit. Unsurprisingly, clear, concise policy documentation is the foundation for a successful SOC 2 audit.

What are SOC 2 policies?

The SOC 2 policies establish a framework for expectations from employees and the procedures for meeting these expectations. These policies are reviewed by the SOC 2 auditor in great detail with respect to adherence to SOC 2 controls and are expected to be documented and accepted by each employee (and often external parties like vendors).

What SOC 2 policies do you need?

The scope for what policies need to be drafted and deployed for SOC 2 compliance will vary depending on the company’s size, services offered, and the Trust Services Criteria chosen. However, there are a few policies that will be required and are recommended for SOC 2:

1. Information Security Policy
   Information Security (IS) policy is the cornerstone of SOC 2 compliance for any organization, and acts as the foundation for all other infosec-related policies. The key objective of the IS policy is to ensure all employees and service providers who have the access to critical data related to the organization, or its networks, satisfy the stated rules and regulations. It is important to note that the IS policy covers both physical and digital data.
2. Access Control Policy
   This policy provides guidance on restricted admittance to various systems and applications and expectations from the admin accounts and their holders. It also covers the process for authorizing, modifying, and removing users, and access using the role-based access control.
3. Password Policy
   The password policy includes the approach for password management, and the necessary protocols for password creation (e.g., length and complexity), changes (e.g., frequency of password changes), and mechanisms (e.g., multi-factor authentication).
4. Data classification policy
   Data classification policy incorporates instructions on how to protect data and what measures need to be taken to secure the data based on the criticality and sensitivity of the data itself.
5. Physical Security Policy
   The physical security policy incorporates the basics of protecting data assets from ecological and physical dangers. This reduces threats from theft, loss, harm or unauthorized access to these valuable assets.
6. Acceptable Use Policy (AUP)
   The Acceptable Use policy describes the restrictions and regulations for utilizing the organization’s technology assets.
7. Backup Policy
   Regular Backup policy is vital for any organization in the cloud era. The policy necessitates protecting critical business data with fixed periodic backups. Ideally, backups can be safely stored with the 3-2-1 method. That implies three data copies should be stored in two different types of media, and one copy should be saved for disaster recovery.
8. Logging and Monitoring Policy
   The logging and monitoring policy lays out the requirements that need to be satisfied for logging user activities and protocols for log inspections.
9. Risk Management Policy
   The Risk Management policy covers the mechanisms and procedures for performing risk assessments. This also covers expected threats and potential impact. Through this policy, one can assess the risk associated with each identified threat, estimate the impact on the organization and define the appropriate mitigation strategies.
10. Change Management Policy
    A change management policy acts as the ground for managing changes in production environments. The main aim of this policy document is to describe practices that minimize potential risks for unauthorized, un-tested, and sub-optimal changes. A change management policy should ideally consist of:
    1. The most common set of changes that happen in the organization’s infrastructure
    2. Brief description of processes to initiate the change – from source to end results along with approval criteria
    3. Stakeholders involved in each layer of change process
    4. Documentation and maintenance of each change record for future audit and compliance.
11. Incident Response Policy
    The IR (Incident Response) policy defines the approach of the enterprise in case of an unwanted and unexpected security incident. The policy is focused on minimizing the impact on business operations and customers while handling such an incident.
12. Business Continuity Plan
    The Business Continuity Plan lays down the operating procedures in case of an emergency. It covers three major aspects for a business:
    1. How will it coordinate efforts in case of emergency?
    2. How will the hardware, applications and essential data will be restored in case of a disaster?
    3. How will the business continue in any unexpected situation?
13. Remote Access Policy
    The remote access policy describes the allowed practices of connecting remotely to an enterprise’s internal networks. Remote access policy is a key requirement for businesses allowing permanent or semi-permanent remote work for employees.
14. Email/Communication Policy
    This policy provides guidelines to employees for acceptable and unacceptable usage of an organization’s various communication mediums.

Scrut Automation is an innovative and radically simple governance, risk, and compliance automation platform for growing startups and mid-market enterprises. With Scrut, compliance teams can reduce ~70% of their manual effort in continuously maintaining compliance towards SOC 2, ISO 27001, GDPR, PCI DSS, HIPAA, and CCPA. Schedule your demo today to see how it works.

During the third quarter of 2022, approximately 15 million data records were exposed worldwide through data breaches (Statista). This figure had increased by 37 percent compared to the previous quarter. With the constant rise in data breaches, a business organization must ensure that its information security and cybersecurity posture is on point. But what is the difference between cybersecurity and information security? Let’s find out.

“We shouldn’t ask our customers to make a tradeoff between privacy and security. We need to offer them the best of both. Ultimately, protecting someone else’s data protects all of us.”

Tim Cook

Often used interchangeably, cybersecurity and information security are not in fact, synonymous. A business person, a CISO, or an organization’s executive should be aware of the difference between the two to form and implement effective security practices in the organization. Knowing the exact difference between the two can lead to the formation of policies that effectively reduce cyber threats. Let us start by learning what the two terms – cybersecurity and information security – mean.

What is cybersecurity?

Cybersecurity can be defined as securing an organization’s assets, including software, hardware, firmware, and network, against possible cyber attacks. These assets include the employees’ personal devices or Internet of things (IoT) devices used to access the organization’s information.

The following sections are included in cybersecurity:

1. Application security

Application security prevents the application source code and data from being attacked by cybercriminals. It is applied to every application stage, namely design, development, and deployment. 

2. Digital information or data security

Although we will discuss information security in detail in the later part of this article, what you should know at this stage is that digital information security is a part of cybersecurity. 

Information security involves all the steps the organization takes to prevent any unauthorized person from accessing the organization’s data. It ensures that the organization’s data is not deleted, edited, copied, downloaded, or damaged by an unauthorized person.

Data can be digital or physical. However, only the security of digital data is covered under the realm of cybersecurity. 

3. Network security

Network security includes protecting data, applications, networks, infrastructure, and systems from cyber threats. 

4. Disaster recovery/business continuity planning

Disaster recovery and business continuity planning refer to the plan to be followed by an organization after cybercriminals have attacked it. A robust plan can minimize downtime after the attack and puts a break on inefficient system functions.

5. Operational security

Operational security is the process of identifying sensitive data, risks, adversaries, and vulnerabilities and taking appropriate measures to secure the data from adversaries.

6. Cloud security

Cloud security includes the protection of data, applications, infrastructure, and software in a cloud environment from threat actors. 

7. Critical infrastructure security

Critical infrastructure is the computer system, network, and cyber assets that are crucial to the functioning of an organization, city, country, or the safety of the general public. The security of the critical infrastructure is imperative for the common good, making it a crucial part of cybersecurity.

8. Physical security

Physical and technological worlds are merging in previously unimaginable ways, and there are times when the boundary between the two is becoming blurred. A physical security breach can lead to a full-blown cyber attack in no time. Therefore, cybersecurity is not complete without physical security.

9. End-user education

IBM reports 21% of the breaches resulted from human errors, including employee or contractor negligence. Employee training can reduce the cost of a data breach by $247,758. Despite employing state-of-the-art security measures, the organization might face cyber attacks if the end users are not trained in using clean cybersecurity practices. 

Figure:

What is information security?

Information security or infosec can be defined as the processes and policies designed to secure the data of an organization. This data can be digital or physical. It can be stored on a device or in transit from one node to another. Every type of data protection is included in information security.

Three Principles of Infosec (CIA Triad)

Information security is based on three principles, popularly known as the CIA triad:

• Confidentiality – Confidentiality of the information ensures that no unauthorized access is ever given to an outsider or anyone working in the organization.
• Integrity – This means that the data is not compromised in any way, and no unauthorized person has viewed, changed, deleted, or downloaded the data.
• Availability – Information security ensures availability, meaning an authorized person gets access to the data whenever they need it and is fully aware that the data has not been tampered with.

Broadly, information can be classified into two categories:

• Digital information – This type of information is stored and transferred digitally. You would require a digital device to access this information. Managing the permissions for access to digital information is crucial for the cybersecurity of the organization. If an unauthorized person finds access, they can cause a cyber attack.
• Physical information – Physical or analog information is the old-school method of recording information. The handwritten notes or printed pages are called physical information. Although the amount of paper-based information is decreasing quickly, some documents are still not digitalized. Protecting the sanctity of these physical documents is crucial for the organization’s information security.

An organization must adhere to the information security requirements set by the government and non-government regulatory agencies and framework providers. Some data privacy regulations, like GDPR and CRPA, and frameworks like SOC 2. These regulations and frameworks are applicable to organizations handling or managing customer data under different circumstances, such as the location of the business, type of data collected, or inventory dealt in. Failure to comply with these data protection laws can land an organization in serious legal and financial trouble.

What is the difference between cybersecurity and information security?

If you draw a Venn diagram for cybersecurity and information security it will look like the following:

As you can see in the figure above, information security includes the protection of digital and physical data. However, the protection of digital data is covered under the cybersecurity domain. Therefore, for complete information security, an organization must take appropriate steps to secure its physical records as well.

The differences between cybersecurity and information security are discussed in the table below:

Where do cybersecurity and information security coincide?

While comparing cybersecurity and information security, we can see that cybersecurity is basically a part of information security. With the increase in digital data and the decrease in the physical formats of data, the gap between the two is reducing at a fast rate.

Only a small percentage of organizations have different cybersecurity analysts and information security analysts. In most organizations, both functions are handled by cybersecurity analysts only. However, in large organizations, assigning different people to these roles is crucial for security.

As the border between the physical and cyber world is becoming thinner, the role of cybersecurity experts becomes enhanced. A higher percentage of digital data means a higher need for cybersecurity experts.

A breach in information security might lead to cybersecurity incidents and vice versa. For example, an employee is entrusted with handling customer information on a sheet of paper as a part of their duty. Protecting this information from outsider and insider threats is the organization’s responsibility. If this data is stolen by an inside person with malicious intent and sold online, the information breach is converted into a cybersecurity incident.

Ultimately, the purpose of either cybersecurity or information security is to protect the organization’s data. Therefore, the goal between the two is the same CIA triad we saw earlier – confidentiality, integrity, and accessibility.

To sum up

Cybersecurity includes all the processes and procedures for securing all your assets from cyber threats. On the other hand, information security is protecting information, whether physical or digital, from unauthorized access. We saw what the distinctive features of cybersecurity and information security are. Also, the difference and similarities between the two types of security areas. Although both types of security are different, both are crucial for every organization.

Scrut can be a trustworthy partner in compliance, which is a massive part of information security. If you want to know more about how Scrut can help your organization’s cybersecurity, you can contact our experts.

FAQ

In the rapidly evolving digital landscape, data security and privacy have become paramount concerns for organizations across various industries. With the increasing volume of sensitive information being handled, compliance with industry-specific regulations has emerged as a critical aspect of maintaining trust and credibility with customers and partners.

Two prominent compliance frameworks that often confuse organizations are  System and Organization Controls 2 (SOC 2) and Health Insurance Portability and Accountability Act (HIPAA). While both are geared towards safeguarding data and ensuring the highest standards of protection, they serve distinct purposes and cater to different industries.

In this blog, we will delve into the core aspects of SOC 2 and HIPAA, unraveling their underlying principles, scopes, and audit processes.

SOC 2 compliance

SOC 2 compliance is an industry-standard auditing procedure developed by the American Institute of CPAs (AICPA) to assess and validate the security, availability, processing integrity, confidentiality, and privacy controls within service organizations. It evolved from the Statement on Auditing Standards No. 70 (SAS 70) report, aiming to address the rise of cloud computing and third-party service providers.

Scope

The scope of SOC 2 compliance is focused on evaluating the controls and processes related to the security, availability, processing integrity, confidentiality, and privacy of a service organization’s systems and services. The assessment is performed by independent auditors who thoroughly review the organization’s policies, procedures, and practices to ensure they align with the TSC.

Applicability

SOC 2 compliance is applicable to service organizations, which are entities that provide services to other businesses or organizations. 

The applicability of SOC 2 compliance extends to a wide range of industries and sectors, including but not limited to:

Technology and SaaS Companies: Organizations offering software solutions, cloud-based services, and IT infrastructure services must often obtain SOC 2 compliance to assure their clients of the security and reliability of their systems.

Data Centers: Data centers that host and manage critical infrastructure and house sensitive data for multiple clients can benefit from SOC 2 compliance to showcase their commitment to data security.

Managed Service Providers (MSPs): MSPs that handle IT management and support for their clients need to assure the security and availability of their services, making SOC 2 compliance essential for building trust.

Healthcare Industry: While SOC 2 itself is not specifically designed for healthcare data, healthcare-related service organizations that handle patient information often seek SOC 2 compliance alongside other industry-specific regulations such as HIPAA.

Financial Institutions: Entities in the financial sector that provide services such as online banking, payment processing, or financial data hosting can benefit from SOC 2 compliance to instill confidence in their clients.

Human Resources and Payroll Services: Service providers that manage sensitive employee data or payroll information may pursue SOC 2 compliance to demonstrate their commitment to data protection.

It is important to note that SOC 2 compliance is voluntary, and organizations can choose to pursue it based on their specific business needs, contractual requirements, and customer demands. Achieving SOC 2 compliance signifies an organization’s dedication to data security and privacy best practices, making it an attractive choice for service providers seeking to establish a competitive edge and build trust with their clients.

Principles of SOC 2 compliance

SOC 2 compliance is based on a set of principles known as the Trust Services Criteria or the TSC. The five key principles of SOC 2 compliance are as follows:

1. Security

This principle focuses on protecting the system and data from unauthorized access, both physical and logical. It assesses the effectiveness of controls implemented to prevent unauthorized access, secure data, and protect against potential security breaches.

2. Availability

This principle assesses the system’s availability, ensuring that the services are available for operation and use as agreed upon in service level agreements (SLAs). It evaluates the controls to minimize downtime and ensure continuous access to the service.

3. Processing Integrity

This principle ensures that the system’s processing is complete, accurate, timely, and authorized. It evaluates the controls that maintain data accuracy and integrity throughout its lifecycle.

4. Confidentiality

This principle focuses on protecting sensitive information from unauthorized disclosure. It evaluates the controls that restrict access to sensitive data and ensure confidentiality.

5. Privacy

This principle assesses how personal information is collected, used, retained, disclosed, and disposed of in accordance with the organization’s privacy policy and relevant regulatory requirements.

Each of these principles plays a vital role in SOC 2 compliance and is essential for ensuring that service organizations maintain a secure and trustworthy environment for their clients’ data. The scope and rigor of the assessments may vary depending on the organization’s specific services and the nature of the data they handle. Successfully meeting the requirements of these principles allows service providers to obtain a SOC 2 report, which they can share with clients, stakeholders, and prospective partners as evidence of their commitment to data security and privacy.

SOC 2 Type 1 vs SOC 2 Type 2

SOC 2 compliance comes in two main types: Type 1 and Type 2. The key difference between the two lies in the duration of the audit and the level of assurance they provide:

1. SOC 2 Type 1

SOC 2 Type 1 is an assessment of the design and implementation of the service organization’s controls at a specific point in time. It evaluates whether the controls are suitably designed to meet the Trust Services Criteria and are in place and operational as of the audit date. 

A Type 1 report provides a snapshot of the organization’s controls at that moment and is helpful for clients and stakeholders who want to understand the service provider’s commitment to security and privacy practices.

2. SOC 2 Type 2

SOC 2 Type 2 goes a step further by assessing the operational effectiveness of the controls over a defined period, typically six months or more. It verifies whether the controls have been consistently applied and maintained over time, providing a higher level of assurance compared to Type 1. The Type 2 report is more comprehensive and valuable for clients and stakeholders who seek ongoing confidence in the service provider’s ability to protect data.

How SOC 2 compliance is assessed and audited

SOC 2 compliance is assessed and audited through a rigorous process conducted by independent third-party auditors. The assessment evaluates whether a service organization’s controls align with the TSC and are effectively implemented to ensure the five principles. The SOC 2 audit generally follows these steps:

1. Scoping

Defining the scope of the audit and identifying the systems and processes to be assessed.

2. Gap analysis

Evaluating the current controls in place and identifying any gaps or deficiencies that need to be addressed for compliance.

3. Remediation

Implementing necessary improvements and changes to meet the Trust Services Criteria requirements.

4. Audit

The auditor conducts testing and examination of the controls to assess their effectiveness and compliance.

5. Reporting

At the end of the audit, the service organization receives a SOC 2 report, which includes the auditor’s findings and opinion on the organization’s controls.

The SOC 2 assessment is conducted annually or at regular intervals to ensure ongoing compliance and continuous improvement of the service organization’s controls. Through this thorough evaluation, SOC 2 compliance allows organizations to instill confidence in their clients, fostering long-term relationships based on trust and data protection excellence.

HIPAA compliance

Let us discuss HIPAA compliance in some detail.

Definition and background of HIPAA compliance

Health Insurance Portability and Accountability Act or HIPAA compliance refers to the adherence of healthcare organizations and their business associates to the regulations outlined in the HIPAA legislation. Enacted in 1996 by the U.S. Congress, HIPAA’s primary goal is to protect the privacy and security of patients’ protected health information (PHI) and ensure its confidentiality throughout its lifecycle.

Prior to the implementation of HIPAA, healthcare data privacy and security were not adequately regulated, leading to concerns about patient information being vulnerable to misuse, unauthorized access, and breaches. The lack of standardized protection measures put patients’ medical records and other sensitive information at risk, resulting in potential identity theft, fraud, and other privacy violations.

To address these issues, Congress passed the Health Insurance Portability and Accountability Act in August 1996, and it became law on August 21, 1996. HIPAA introduced significant changes to the healthcare industry, primarily focusing on:

1. Portability

HIPAA ensured that individuals who changed or lost their jobs could maintain continuous health insurance coverage, even with pre-existing conditions. This aimed to provide more flexibility and continuity in health insurance coverage for employees and their families.

2. Administrative simplification

HIPAA mandated the creation of national standards for electronic health transactions, such as billing and claims processing. This aimed to streamline administrative processes, reduce paperwork, and improve the efficiency of the healthcare system.

3. Privacy and security 

One of the most significant components of HIPAA was the establishment of Privacy and Security Rules to protect patients’ sensitive health information. The Privacy Rule set national standards for the protection of individually identifiable health information, while the Security Rule provided guidelines for securing electronically protected health information (ePHI).

Scope and applicability of HIPAA compliance:

HIPAA compliance applies to “covered entities” and “business associates” involved in the handling and processing of PHI. Covered entities include 

• healthcare providers (e.g., doctors, hospitals, clinics), 
• health plans (e.g., insurance companies, HMOs), and 
• healthcare clearinghouses (e.g., entities that process health information for billing purposes).

Business associates are individuals or organizations that perform certain functions or activities on behalf of covered entities and involve the use or disclosure of PHI. Examples of business associates include third-party billing companies, IT service providers, and medical transcription services.

Key elements of HIPAA compliance

The key elements of HIPAA Compliance are as follows:

1. Privacy Rule

The Privacy Rule governs the use and disclosure of PHI by covered entities. It grants patients certain rights over their health information and sets standards for how covered entities must protect and handle PHI. Covered entities must have written privacy policies, designate a privacy officer, and obtain patient consent for certain uses and disclosures of PHI.

2. Security Rule

The Security Rule focuses specifically on ePHI and mandates that covered entities and their business associates implement administrative, physical, and technical safeguards to protect the confidentiality, integrity, and availability of electronic health information. This includes measures such as encryption, access controls, audit logs, and staff training on security best practices.

3. Breach Notification Rule 

The Breach Notification Rule requires covered entities to notify affected individuals, the Department of Health and Human Services (HHS), and, in certain cases, the media in the event of a breach of unsecured PHI. Breach notifications must be made promptly to ensure affected individuals are aware of potential risks to their privacy.

4. Omnibus Rule

The Omnibus Rule, implemented in 2013, made several significant changes to HIPAA regulations, including expanding the liability of business associates for compliance and strengthening patient rights regarding their PHI.

Entities covered by HIPAA regulations

As mentioned earlier, covered entities include healthcare providers, health plans, and healthcare clearinghouses. These entities are directly responsible for complying with HIPAA regulations and safeguarding PHI.

Importance of Business Associate Agreements (BAAs)

BAAs are crucial in the context of HIPAA compliance. Covered entities must enter into written agreements with their business associates, outlining the responsibilities and requirements related to the use and protection of PHI. BAAs establish the terms and conditions for how business associates must handle PHI and ensure they are held accountable for complying with HIPAA regulations.

Penalties for non-compliance with HIPAA

Non-compliance with HIPAA can result in severe penalties. The Office for Civil Rights (OCR), which enforces HIPAA regulations, has the authority to impose civil monetary penalties on covered entities and business associates found in violation of the rules. 

Penalties can range from $100 to $50,000 per violation, depending on the level of negligence and the extent of the violation. In cases of willful neglect, penalties can reach up to $1.5 million per violation.

HIPAA compliance is a critical aspect of the healthcare industry, safeguarding patient privacy, promoting trust in healthcare services, and reducing the risk of data breaches and unauthorized disclosures. Therefore, healthcare organizations and their business associates must remain vigilant in adhering to HIPAA requirements and continuously improve their data protection practices to ensure the privacy and security of patients’ health information.

Comparison between SOC 2 and HIPAA compliance

SOC 2 and HIPAA are distinct frameworks designed for different purposes. SOC 2 is primarily about demonstrating the adequacy of a service provider’s controls related to security, availability, processing integrity, confidentiality, and privacy, while HIPAA specifically addresses the protection of healthcare-related information. Organizations should carefully assess their regulatory requirements and security needs to determine which compliance framework is relevant to their operations.

The comparison between SOC 2 and HIPAA compliance can be seen in the table below:

Aspect	SOC 2	HIPAA
Focus areas	Data security, availability, and processing integrity for service providers	Protecting the privacy and security of individuals’ health information
Scope and industry applicability	Broad applicability across various industries, particularly for technology service providers	Primarily applicable to healthcare providers, health plans, and healthcare clearinghouses
Framework and principles	Based on Trust Services Criteria, with five key principles – security, availability, processing integrity, confidentiality, and privacy	Based on specific rules and regulations designed for healthcare information protection, including the Privacy Rule, Security Rule, and Breach Notification Rule
Audit and certification process	Voluntary audit conducted by independent auditors, resulting in SOC 2 report	Mandatory compliance assessment by the Department of Health and Human Services (HHS)
Penalties for non-compliance	No direct penalties but loss of business and reputation can be severe	Significant financial penalties for violations, based on the severity of the breach

Considerations for organizations

1. Determining the applicable compliance requirement

Organizations must carefully assess their operations, industry, and the type of data they handle to determine which compliance requirement is applicable to them. If the organization is a technology service provider handling customer data, SOC 2 might be more relevant. 

On the other hand, if the organization is part of the healthcare industry and deals with protected health information, HIPAA compliance would be the primary concern. Properly identifying the applicable compliance requirement ensures that the organization focuses its efforts on meeting the necessary standards.

2. Complementary nature of SOC 2 and HIPAA for some organizations

In certain cases, organizations might find that both SOC 2 and HIPAA are relevant to their operations. For instance, a technology service provider that handles healthcare data for healthcare providers would need to ensure compliance with both frameworks. In such cases, SOC 2 and HIPAA can be complementary, with SOC 2 addressing broader data security and processing concerns and HIPAA specifically addressing the privacy and security of health information.

3. Overlapping controls and strategies for efficient compliance

Even if an organization is required to comply with both SOC 2 and HIPAA, there may be overlapping controls and strategies that can be leveraged to achieve efficient compliance. For example, both frameworks emphasize data security and confidentiality. Implementing robust data security measures and access controls can address requirements from both SOC 2 and HIPAA, streamlining the compliance process.

4. The importance of ongoing monitoring and review

Compliance is not a one-time effort; it requires continuous monitoring and review. Organizations need to regularly assess their compliance measures, update them as needed to address changing risks and regulations, and conduct periodic audits to ensure ongoing adherence to the chosen compliance framework(s). This proactive approach helps maintain a high level of security and ensures that the organization remains compliant with industry standards and regulatory requirements.

By carefully considering these aspects, organizations can navigate the compliance landscape more effectively and establish a strong foundation for data protection and security. It is essential to stay informed about updates to the frameworks and regulations, engage in regular risk assessments, and actively work towards maintaining a culture of compliance within the organization.

Final thoughts

In conclusion, maintaining compliance with SOC 2 and HIPAA is vital for organizations to safeguard data security and privacy. SOC 2 focuses on service providers’ data security and availability, while HIPAA protects individuals’ health information in the healthcare sector. Careful identification of applicable requirements, leveraging overlapping controls, and ongoing monitoring are essential for efficient compliance and earning trust from customers and partners.

FAQs