Information security compliance is a key challenge that most startups must endure prior to doing business with any company that processes sensitive information. This is the harsh reality and it may be overwhelming for many startups that are in the infancy stages of their businesses.
TL;DR
- Compliance is essential for startups, with frameworks like SOC 2, ISO 27001, and HIPAA required by most businesses to ensure data security.
- Startups often struggle with compliance due to limited resources, causing disruption to core operations.
- Automation tools can streamline compliance processes, saving time and money while ensuring continuous compliance with all key standards.
Why Information Security Compliance Frameworks Matter for SaaS Startups
Most companies today require you to prove that you’ve got the internal controls in place to ensure their data is secure, by obtaining the relevant stamps of approval from an accredited auditor prior to doing business with you. Complying with common security compliance and data privacy frameworks such as SOC 2, ISO 27001, GDPR, and HIPAA has become an unwritten rule for best practice for most companies today who store customer data on the cloud.
SaaS startups, therefore, implement SOC 2 and ISO 27001 compliance primarily for two reasons:
- To assure their customers of the highest levels of data security.
- To have the right protocols in place to meet those high standards.
Information security compliance refers to the standards and regulations that govern how companies keep data secure, private, and safe from breaches or damage. Essentially, it demonstrates to any organization that you’re planning on doing business with, that you are taking your customer’s sensitive information seriously. SOC 2, ISO 2700, HIPAA and other common frameworks make customers stand up and take notice.
Your region and industry will determine the type of compliance standard that you will adopt. The most common forms of compliance are ISO 27001, which is more prominent in Europe, and SOC 2 (Type I and Type II) in the USA.
Top Security Compliance Challenges for Startups
Companies today not only demand but expect exceptional security.
Since the way a business manages compliance and its information security in general ultimately affects the quality of the organization’s operations, companies prefer to engage with companies that have thorough security protocols and controls in place. This means compliance has become a necessity to demonstrate to other companies that the correct standards are adhered to, reassuring the likelihood that their data is well protected.
For many startups, compliance is only prioritized when customers or prospects start asking questions about the level of controls and measures your organization has in place. Big mistake.
By that time, there is an overwhelming amount of time and effort required for a startup with limited resources to get compliant, especially as using internal resources to achieve compliance diverts time and attention from employees’ core responsibilities.
Data breaches are increasing at an alarming rate globally, demonstrating just how vulnerable companies are to security incidents. One thing remains certain: a company’s security protocols are only as strong as its weakest link.
Why is Compliance Automation Essential for Startups?
Unfortunately, compliance isn’t something that can be taken for granted. Quite the contrary.
For example, the healthcare industry has a history of disregarding compliance with HIPAA, and regulators may penalize providers for such violations. This means that in the case that providers aren’t properly securing customer data, this will put their systems in danger of being breached and damaging their reputations.
Despite the numerous benefits of SOC 2, ISO 27001, HIPAA, and other frameworks, compliance can be a resource-intensive process. Fortunately, organizations can now use compliance automation tools to reduce the cost of compliance, both in terms of time and money, making the process far more efficient.
Companies often spend a great deal of time deciphering complicated spreadsheets, and employees are too busy collecting evidence and updating reports to focus on value-added tasks. The preparation for a SOC 2, ISO 2700, HIPAA and other audits can be an absolute nightmare which is why, for many companies, becoming compliant is more of a quest than a journey.
Leveraging AI-powered, automation platforms like Scytale to automate the entire process not only speeds up the evidence collection process and eliminates the manual component, but also ensures that the correct information is collected and eliminates human error. Additionally, automated compliance provides inbuilt error-checking tools to ensure continuous monitoring of your compliance.
This reverts back to the idea of saving time by allowing employees to focus on their main responsibilities and less time scrambling to get compliant. A win-win, right?
GET COMPLIANT 90% FASTER
With automation, you can achieve more in less time and with fewer resources. Compliance software makes it much easier to assess how all your security systems and procedures are functioning and even highlights security gaps that might otherwise go unnoticed, making it truly effortless to get and stay compliant.
