Organizations are increasingly prioritizing cybersecurity compliance as part of their core business strategy. With the rise of sophisticated cyber threats and growing regulatory demands, maintaining compliance has become a crucial factor in protecting sensitive data and ensuring trust with customers. This blog dives into why cybersecurity compliance is a top priority today, covering key frameworks and steps companies are taking to stay secure and compliant in a fast-evolving digital world.
What is cybersecurity compliance?
Cybersecurity compliance is the process of aligning your organization’s security practices with laws, regulations, and standards designed to protect sensitive data. These rules vary by industry and geography—think HIPAA for healthcare, GDPR for personal data in the EU, PCI DSS for credit card payments, and SOX for financial reporting. Frameworks like ISO 27001 and NIST help companies structure their security programs around these requirements. At its core, compliance means putting the right controls in place to keep information safe—and proving it.
It’s not just security teams or big tech firms that need to care. Any organization that collects, stores, or processes sensitive data—be it personal, financial, or health-related—has a compliance obligation. That includes hospitals, SaaS providers, e-commerce platforms, financial institutions, and even startups working with regulated customers.
Why is cybersecurity compliance important?
As cyber threats grow more sophisticated and regulations tighten, compliance has become a critical part of doing business in any industry that handles sensitive data. Here’s why it matters:
1. Reduces risk of data breaches
Compliance frameworks require you to implement foundational security controls—like encryption, access management, and incident response planning—that significantly lower your risk exposure. These safeguards help prevent unauthorized access, data leaks, and costly cyberattacks.
2. Helps avoid legal and financial penalties
Failing to comply with regulations like GDPR, HIPAA, or PCI DSS can lead to steep fines, legal action, and even operational restrictions. Compliance ensures your business meets its legal obligations and avoids avoidable setbacks.
3. Builds trust with customers and partners
Demonstrating compliance shows customers, investors, and partners that you’re serious about data protection. It gives them confidence that their information is in safe hands—especially when security is now a deciding factor in buying and vendor decisions.
4. Supports long-term business growth
As your organization grows, so does your exposure to regulatory scrutiny and third-party risks. A strong compliance program helps you scale responsibly, meet due diligence requirements, and enter new markets with fewer barriers.
What are the major compliance standards and frameworks?
A strong cybersecurity compliance program relies on a mix of internal policies and external benchmarks. These benchmarks—better known as cyber security industry standards and frameworks—provide a structured approach to managing risk and compliance in cyber security. They guide organizations in identifying threats, implementing compliance controls (like access restrictions, encryption, and audit logs), and demonstrating that they’ve taken reasonable steps to protect sensitive data. While specific requirements vary by region and industry, most organizations align their efforts with a handful of widely recognized standards that form the backbone of any mature compliance program.
1. HIPAA
The Health Insurance Portability and Accountability Act (HIPAA) was enacted by the U.S. Congress in 1996 and is enforced by the Department of Health and Human Services (HHS), specifically through its Office for Civil Rights (OCR). It establishes national standards to protect sensitive patient health information from being disclosed without the patient’s consent or knowledge. HIPAA compliance is mandatory for covered entities, including healthcare providers, health plans, and healthcare clearinghouses, as well as their business associates who handle protected health information (PHI). While there is no official “HIPAA certification” issued by the government, organizations often undergo third-party assessments to evaluate their compliance posture.
HIPAA has evolved over time, with significant updates such as the HIPAA Omnibus Rule in 2013, which strengthened privacy and security protections. In January 2025, HHS proposed new regulations to enhance cybersecurity protections for electronic protected health information (ePHI), including mandatory annual technical inventories and more rigorous security risk assessments.
The cost of achieving HIPAA compliance varies based on the size and complexity of the organization. Estimates range from approximately $4,000 for small organizations to over $78,000 for larger entities, encompassing expenses for risk analysis, training, policy development, and technical safeguards.
HIPAA is specifically designed to protect Protected Health Information (PHI), which includes any individually identifiable health data. This encompasses information such as patient names, medical record numbers, diagnoses, treatment details, insurance information, and even biometric identifiers. PHI must be safeguarded through administrative, physical, and technical measures as outlined in HIPAA’s Privacy and Security Rules.
2. PCI DSS
The Payment Card Industry Data Security Standard (PCI DSS), established in 2004 by Visa, Mastercard, American Express, Discover, and JCB, enhances global payment account data security. Managed by the PCI Security Standards Council (PCI SSC), it applies to all entities handling cardholder data, including merchants, financial institutions, and service providers. Compliance is mandatory.
Organizations are divided into four compliance levels based on annual transaction volume:
Level 1: Over 6 million transactions, requiring a Qualified Security Assessor (QSA) audit.
Level 2: 1–6 million transactions, often using a Self-Assessment Questionnaire (SAQ).
Level 3: 20,000–1 million e-commerce transactions, using an SAQ.
Level 4: Fewer than 20,000 e-commerce or 1 million total transactions, using an SAQ.
Compliance involves automated tools (e.g., vulnerability scanning) and manual processes (e.g., policy development). Costs vary: $5,000–$20,000 for small businesses, $50,000–$200,000 for larger enterprises, with complex cases potentially higher. Certification takes 4–8 months, requiring annual validation and ongoing adherence to 12 requirements across six categories (e.g., secure networks, data protection, access controls).
PCI DSS protects cardholder data (Primary Account Number, name, expiration date, service code) and sensitive authentication data (track data, CVV, PINs). It covers the cardholder data environment (CDE), requiring encryption, access controls, and monitoring. Non-compliance may lead to fines ($5,000–$100,000/month), higher fees, or loss of processing privileges.
3. NIST Cybersecurity Framework (CSF)
The NIST Cybersecurity Framework (CSF), developed by the National Institute of Standards and Technology (NIST) in 2014 and updated in 2024 (CSF 2.0), provides a voluntary, risk-based approach to managing cybersecurity risks. Created through collaboration with industry and government, it applies to organizations of all sizes and sectors, particularly those in critical infrastructure (e.g., energy, healthcare, finance). While not mandatory, many organizations adopt the CSF to enhance security, meet regulatory requirements, or align with standards like HIPAA or PCI DSS.
The CSF is organized into six core functions: Govern, Identify, Protect, Detect, Respond, and Recover. These functions guide organizations in assessing risks, implementing safeguards, monitoring threats, and recovering from incidents. Compliance is flexible, with organizations tailoring implementation based on their risk profile and resources. The framework uses tiers (Partial, Risk-Informed, Repeatable, Adaptive) to measure maturity and guide improvement.
Costs for CSF adoption vary widely. Small organizations may spend $10,000–$50,000 on initial assessments and tools, while large enterprises could invest $100,000–$500,000, depending on complexity and existing security measures. Implementation typically takes 3–12 months, with ongoing assessments to maintain alignment. Unlike PCI DSS, there’s no formal certification, but organizations may undergo audits to demonstrate adherence.
The CSF protects sensitive data (e.g., personal, financial, or operational information) by promoting robust risk management, access controls, and incident response. Non-compliance doesn’t carry direct penalties, but failure to align with CSF best practices may increase regulatory scrutiny or risk of breaches, leading to financial and reputational losses.
4. SOC 2
SOC 2 (System and Organization Controls 2), developed by the American Institute of CPAs (AICPA) in 2010, is a voluntary framework for assessing service organizations’ controls over data security, availability, processing integrity, confidentiality, and privacy. It applies to service providers—such as cloud, SaaS, or data processing companies—handling customer data, especially in technology and healthcare. Compliance builds client trust and is often required in B2B contracts.
SOC 2 is based on five Trust Services Criteria: Security (mandatory), Availability, Processing Integrity, Confidentiality, and Privacy (optional, based on services). Organizations undergo a Type 1 audit (point-in-time control assessment) or Type 2 audit (control effectiveness over 6–12 months), conducted by a licensed CPA firm. Compliance requires controls like encryption, access management, and monitoring.
The cost of a SOC 2 audit depends on your organization’s size, operational complexity, and the auditor you choose. Type 1 audits typically range from $15,000 to $40,000, while Type 2 audits—due to their longer assessment period—can cost between $30,000 and $80,000. You may also incur extra costs for readiness assessments, security tooling, and ongoing compliance upkeep.
SOC 2 protects sensitive customer data (e.g., personal, financial). Non-compliance risks losing contracts, reputational damage, or legal liabilities from data breaches.
5. ISO/IEC 27001
ISO/IEC 27001, developed by the International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC) in 2005 and updated in 2022, is a voluntary international standard for establishing, implementing, and maintaining an Information Security Management System (ISMS). It applies to organizations of all sizes and sectors, particularly those handling sensitive data (e.g., finance, healthcare, technology). Compliance demonstrates robust security practices and is often required for global business contracts.
The standard outlines 93 controls across 4 themes (organizational, people, physical, technological) to manage risks to information assets. Certification requires a two-stage audit by an accredited body: Stage 1 (documentation review) and Stage 2 (implementation assessment). Compliance involves risk assessments, policies, and controls like encryption and access management.
Costs vary by size and complexity: $15,000–$40,000 for small organizations, $50,000–$200,000 for larger ones, covering audits, consulting, and tools. Certification takes 6–18 months, with triennial recertification and annual surveillance audits.
ISO/IEC 27001 protects sensitive data (e.g., customer, financial). Non-compliance risks losing contracts, regulatory penalties, or breaches causing reputational harm.
6. CCPA
The California Consumer Privacy Act (CCPA), enacted in 2018 and effective from 2020, is a mandatory data privacy regulation protecting California residents’ personal information. Administered by the California Attorney General, it applies to for-profit businesses meeting specific thresholds: annual revenue over $25 million, handling personal data of 100,000+ consumers/devices, or deriving 50%+ revenue from selling/sharing personal data. It’s relevant for companies in retail, tech, and finance operating in California.
CCPA requires businesses to provide transparency (e.g., privacy notices), consumer rights (e.g., access, deletion, opt-out of data sales), and safeguards like encryption and access controls. Compliance involves data mapping, policy updates, and consumer request processes, often supported by automated tools.
Costs vary by size: $10,000–$50,000 for small businesses, $100,000–$500,000 for larger enterprises, covering assessments, legal support, and tools. Implementation takes 3–12 months, with ongoing compliance monitoring.
CCPA protects personal data (e.g., names, addresses, online identifiers). Non-compliance risks fines ($2,500–$7,500 per intentional violation), lawsuits, and reputational damage.
7. FERPA
The Family Educational Rights and Privacy Act (FERPA), enacted in 1974 and administered by the U.S. Department of Education, is a mandatory federal law protecting the privacy of student education records. It applies to educational institutions (e.g., K-12 schools, colleges, universities) receiving federal funding, primarily in the education sector. FERPA grants parents and eligible students (18 or older) rights to access, amend, and control the disclosure of education records.
Compliance requires policies for record access, consent for disclosures, and safeguards like encryption, access controls, and audit logs. Institutions must train staff and handle record requests promptly, often using automated tools for data protection and monitoring. Implementation typically takes 3–12 months, with ongoing compliance through regular training and audits.
FERPA protects education records (e.g., grades, personal identifiers, health data). Non-compliance risks loss of federal funding, lawsuits, and reputational damage, particularly from unauthorized disclosures.
8. CMMC
The Cybersecurity Maturity Model Certification (CMMC), introduced by the U.S. Department of Defense (DoD) in 2019 and updated to CMMC 2.0 in 2024, is a mandatory framework to enhance cybersecurity for the Defense Industrial Base (DIB). It applies to DoD contractors and subcontractors handling Federal Contract Information (FCI) or Controlled Unclassified Information (CUI), such as aerospace and defense suppliers. CMMC 2.0 streamlines requirements into three levels aligned with NIST SP 800-171 and 800-172.
Compliance involves implementing cybersecurity practices (e.g., access controls, encryption) and undergoing assessments: Level 1 (self-assessment), Level 2 (third-party or self-assessment), or Level 3 (government-led). The process, including gap analysis and remediation, takes 6–18 months, with periodic reassessments. Phase-in begins Q3 2025.
CMMC protects FCI and CUI (e.g., technical designs, contract data). Non-compliance risks contract ineligibility, penalties, or data breaches, impacting national security and competitiveness.
9. FISMA
The Federal Information Security Modernization Act (FISMA), enacted in 2002 and updated in 2014, is a mandatory U.S. federal law ensuring the security of federal information systems. Administered by the Office of Management and Budget (OMB) and aligned with NIST standards, it applies to federal agencies, contractors, and organizations managing federal data, particularly in government and defense sectors. FISMA aims to protect sensitive government information from cyber threats.
Compliance requires implementing NIST SP 800-53 controls, conducting risk assessments, and maintaining security plans. Agencies must perform continuous monitoring, annual audits, and incident response, using tools for encryption, access controls, and logging. The process, including system categorization and control implementation, takes 6–12 months, with ongoing assessments.
FISMA protects federal data (e.g., personally identifiable information, classified data). Non-compliance risks penalties, loss of federal contracts, or data breaches, compromising national security and agency operations.
10. GDPR
The General Data Protection Regulation (GDPR), enacted by the European Union in 2016 and effective from 2018, is a mandatory data protection law safeguarding EU residents’ personal data. Administered by national Data Protection Authorities (DPAs), it applies to organizations worldwide processing EU residents’ data, including tech, retail, and finance sectors. GDPR ensures privacy through transparency and accountability.
Compliance requires data mapping, privacy policies, consent mechanisms, and safeguards like encryption and access controls. Organizations must appoint Data Protection Officers (DPOs) for large-scale processing, conduct audits, and handle data subject requests (e.g., access, deletion). Implementation takes 6–18 months, with ongoing monitoring.
Costs vary by size: $15,000–$50,000 for small businesses, $100,000–$1,000,000 for larger enterprises, covering DPOs, legal support, and tools. GDPR protects personal data (e.g., names, emails, health information). Non-compliance risks fines up to €20 million or 4% of annual global turnover, lawsuits, and reputational damage.
How to achieve cybersecurity compliance?
Achieving cybersecurity compliance isn’t just about checking boxes—it’s about building a sustainable, risk-aware culture that aligns with regulatory requirements. Whether you’re aiming for SOC 2, ISO 27001, or GDPR, the path typically follows a structured, strategic process.
1. Understand your obligations
Start by identifying which laws, regulations, and standards apply to your business. This depends on your industry, the type of data you handle, and your customer base.
2. Conduct a risk assessment
Evaluate where your sensitive data lives, how it’s protected, and what vulnerabilities exist. This forms the foundation for all your compliance decisions.
3. Implement controls
Put appropriate technical and administrative safeguards in place—think access controls, encryption, endpoint security, and formalized policies. Frameworks like NIST CSF or CIS Controls can offer direction here.
4. Train your people
Human error is still the leading cause of security incidents. Regular training helps employees recognize risks like phishing, mishandling data, or using weak passwords.
5. Document and audit continuously
Maintain detailed records of your security practices, monitor for gaps, and run internal or third-party audits to validate compliance. Continuous monitoring ensures your program adapts as threats and regulations evolve.
What are some cybersecurity compliance software?
If you’re looking to simplify audits and stay ahead of regulatory demands, here are five top compliance automation software to consider:
1. Scrut – A powerful platform that helps fast-growing companies stay audit-ready across multiple frameworks with continuous controls monitoring.
2. Vanta – Popular for startups, Vanta offers automated security monitoring and pre-built integrations for SOC 2, ISO 27001, and more.
3. Secureframe – Offers streamlined compliance workflows and auditor-friendly reports for fast certifications.
4. Thoropass – Combines software with in-house audit experts to help you manage compliance from readiness to certification.
5. AuditBoard – Tailored for enterprises, AuditBoard centralizes risk, audit, and compliance programs with robust reporting features.
How Scrut automates the cybersecurity compliance process
Scrut simplifies cybersecurity compliance by offering an end-to-end platform that automates evidence collection, monitors controls in real time, and maps them across multiple frameworks like SOC 2, ISO 27001, and NIST. With integrations into your existing tech stack and features like automated risk assessments, auditor collaboration, and real-time dashboards, Scrut makes it easier for teams to stay compliant without slowing down business growth. Schedule a demo today to learn more.
FAQs
Is cybersecurity compliance the same as IT security compliance?
Not exactly. Cybersecurity compliance focuses on protecting digital assets and sensitive data from cyber threats, often in line with specific regulations or standards. IT security compliance is broader—it includes cybersecurity but also covers physical infrastructure, access controls, and operational policies related to IT systems. In short, cybersecurity compliance is a subset of the larger IT security compliance landscape.
Do compliance audits take the same time for all frameworks or standards?
No, the duration of compliance audits varies based on the framework, the complexity of your organization, and your level of preparedness. For example, a SOC 2 Type 1 audit may take a few weeks, while a SOC 2 Type 2 or ISO 27001 certification can span several months. Frameworks with more technical requirements or ongoing observation periods generally take longer to complete.
Is cyber security compliance training important?
Yes, cybersecurity compliance training is essential for building a security-aware culture and ensuring that employees understand their responsibilities under regulatory requirements. It helps reduce human error, supports adherence to policies, and strengthens your organization’s overall compliance posture.
Does cybersecurity compliance help in risk management?
Yes, cybersecurity compliance plays a key role in risk management by establishing controls that identify, assess, and mitigate security risks. It ensures that organizations proactively address vulnerabilities, align with industry best practices, and build resilience against potential threats and breaches.
What are some security compliance best practices?
Some security compliance best practices include regularly conducting risk assessments, implementing strong access controls, ensuring data encryption, maintaining detailed documentation, staying up-to-date with regulatory changes, and providing ongoing training to employees. Following these practices helps organizations stay compliant and safeguard their sensitive information.
What are some common compliance controls?
Some common compliance controls include access controls, encryption standards, data backup and recovery procedures, audit logging, vulnerability management, and incident response protocols. These controls help organizations meet regulatory requirements and manage risks effectively.
