Audits can be daunting for financial institutions, but with the right approach and preparation, they can become easy tasks that can also act as a way to stay on top of cybersecurity. In this blog, we will delve into the essential strategies and best practices to help you pass compliance audits with confidence.
Before diving into the strategies for success, it's crucial to grasp the fundamentals of audits. These audits ensure that businesses adhere to the regulations and standards set forth by governing bodies and industry organizations as non-compliance can lead to severe penalties, tarnished reputations, and legal consequences.
A few common standards and regulations found in the finance sector include:
Compliance audits help to create a clear line of communication between all team members in an organization. It also ensures visibility into regulatory guidelines and the organization's respect for the procedures. There are no departments exempt when it comes to passing an audit. For a business to meet and exceed various compliance regulations, the whole company, including the IT team, should get prepared. That said, below we’re sharing some advice for how to pass an IT compliance audit.
Regardless of the standards you’re trying to comply with, before an audit, the first step in conducting self-assessments is understanding the regulatory environment in which your organization operates. This involves identifying the primary industries your organization belongs to and the geographic regions where it conducts business. Understanding these factors lays the groundwork for identifying the regulatory frameworks that may apply to your operations.
The various dealings and nature of your business can have an impact on which audits you may face. For example, if you never deal with California residents, you may not need to worry about the CCPA. Likewise, if you’re serving customers in the United States, and not anyone residing in the European Union, you will likely be in the clear for any potential GDPR compliance audits.
By that same token, financial planners may have different standards they are held to than doctors. In other words, only the standards councils, and laws that are directly related to your business are ones you need to worry about. And, yes, your company can be impacted by multiple regulations, laws, standards, etc... depending on the nature of your business. For example, billing companies that handle cardholder data and medical records could face both PCI-DSS and HIPAA audits.
As the gaps are found, they should be patched as quickly as possible. An example of this would be finding that your cardholder data is not secure at a single point within a business process. In this case, if you were to be audited for compliance, your business would fail the PCI DSS Compliance standards.
A big mistake many companies make is forgetting to delete access credentials when employees leave the company. Another is giving their employees too much access. In the case of a HIPAA audit, a receptionist having access to medical records for all patients when they don’t need to could be grounds for failing to be compliant.
Consider all of your employees, and determine what access levels they actually need, and act accordingly. This could mean segmenting them into groups so they only see things relevant to their specific job. While you’re running this check, delete users who are no longer with the company such as ex-employees, old vendors, employees who have moved to other departments, etc…
Run these access checks at least quarterly. If you have a lot of employee or vendor turnover, doing monthly access checks may be more beneficial.
It’s critical that you have records of things like logins to determine when users were accessing data. It’s also wise to have documentation for changes in security/business processes. Digital and physical paper trails can go a long way in proving compliance.
Moreover, documenting changes in security and business processes not only facilitates internal review and oversight but also serves as a crucial audit trail for demonstrating compliance evolution over time.
“I didn’t know” is no excuse when being audited. It is your company’s responsibility to keep up with the latest regulations for the standards councils, laws, and regulations that impact your business. As new regulations are enforced, you must ensure that your company is still in compliance. And, when you make a change, be sure to document it for your records.
By prioritizing awareness your company can mitigate compliance risks and demonstrate a proactive commitment to meeting regulatory obligations. A couple of ways to stay updated on regulations are to subscribe to regulatory newsletters and alerts, follow industry-specific publications, monitor government websites, seek guidance from compliance experts, or consider using compliance software to track and manage regulatory changes.
From your vendors to your shareholders, employees to your executives - implement training related to compliance so all relevant personnel are aware of how to pass a compliance audit. This may mean teaching your team about security protocols for storing and accessing financial or health data. It could also mean impressing upon your team the importance of using strong passwords that are changed regularly, refraining from allowing unauthorized users into the building, being mindful of phishing emails, and so on.
The key to passing an audit is to simply be prepared as if your company could be audited at any moment. While it may feel like an unnecessary step, particularly if you’ve not been audited for compliance to date, it’s still a good practice. If nothing else, staying audit-ready will ensure you perform optimally for the safety and security of your employees, clients, shareholders, vendors, etc…
Schedule a complimentary compliance management strategy session with Rivial Security, or discover our purpose-built platform that automates your compliance journey from start to audit with a brief demo today!
Or, start with a free Cybersecurity assessment to self-assess your current cybersecurity program.