The 7 Compliance Standards and Cybersecurity Measures All SMBs Should Know
Every business handles sensitive data in some way. And that means every business has the obligation of making sure that the data is safe.
Operating an SMB comes with many responsibilities that demand your attention. With a growing list of urgent tasks and competing priorities, compliance can be easy to overlook. But, at the end of the day, compliance is a requirement, and there are serious consequences to overlooking it.
Are you aware of your SMB’s compliance obligations relating to cybersecurity? More importantly, are you confident that you’re meeting them?
Your SMB’s specific compliance requirements will depend on the industry you’re operating in and other factors, but there are a few pertinent compliance standards that every SMB leader should know.
1. PCI DSS v4.0.1
The Payment Card Industry Data Security Standard or PCI DSS, is a comprehensive framework of security standards designed to secure credit card transactions and cardholder data.
Any business that processes, stores or transmits credit card information through point-of-sale systems, online transactions or phone, must adhere to the standard. This can include physical retailers, service providers, e-commerce businesses and payment processors.
The standard provides 12 core requirements:
- Install and maintain network security controls
- Apply secure configurations to all system components
- Protect stored account data
- Protect cardholder data with strong cryptography during transmission
- Protect all systems and networks from malicious software
- Develop and maintain secure systems and software
- Restrict access to system components and cardholder data by business need to know
- Identify users and authenticate access to system components
- Restrict physical access to cardholder data
- Log and monitor all access to system components and cardholder data
- Test security of systems and networks regularly
- Support information security with organizational policies and programs
To determine your SMB’s current security readiness against the requirements, you can complete a Self-Assessment Questionnaire. Depending on your transaction volume and business model, you may be required to undergo a more comprehensive audit by a Qualified Security Assessor.
You should then take steps to adhere to all of the 12 core security requirements. You’ll also need to maintain detailed documentation and conduct annual compliance reviews.
The compliance deadline was March 31, 2025, so you should begin implementing the controls as soon as possible if you haven’t already.
The financial impact of noncompliance with PCI DSS can be substantial. Non-compliance can result in hefty fines from card brands, increased processing costs and potential legal exposure. Beyond the financial penalties, you may face operational disruption if payment processors suspend your ability to accept card payments.
2. HIPAA
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is a federal law that mandates protection of sensitive patient health information, or PHI. It requires that various administrative, physical and technical safeguards be in place to protect the information.
The law applies not only to healthcare providers and insurers, but also to any business that handles PHI in any way. For example, if your SMB provides medical billing services, transcription services for clinics or doctor’s offices, medical answering services and any other services or products that require you to handle any identifiable health information, you must comply with HIPAA.
Before you become compliant, you need to understand exactly what the law requires. You can then administer or undergo a thorough HIPAA compliance gap analysis. If you’re confused about what the law requires or don’t have the expertise to conduct the assessment, you can partner with a third-party vendor with experience in evaluating HIPAA compliance.
If you determine that there are areas in your SMB’s PHI protection that are lacking, you’ll have to apply the appropriate administrative, physical and technical safeguards.
HIPAA violations can result in severe federal fines and legal action. Beyond the financial penalties, HIPAA breaches often generate significant media attention, causing lasting harm to your reputation and brand. You’ll also likely have to contend with business disruption from your remedial efforts and any subsequent investigation, impacting your ability to serve your customers.
3. CMMC 2.0
The Cybersecurity Maturity Model Certification (CMMC) 2.0 program is a Department of Defense framework designed to ensure contractors adequately protect federal contract Information and controlled unclassified information. This applies to DoD contractors and subcontractors at all levels of the supply chain.
There are three levels of cybersecurity requirements:
- Level 1. Basic safeguarding of federal contract information (FCI)
- Level 2. Broad protection of controlled unclassified information (CUI)
- Level 3. Higher-level protection of CUI against advanced persistent threats
Level 1 compliance requires annual self-assessments through the Supplier Performance Risk System, or SPRS, portal. Level 2 compliance involves implementing NIST SP 800-171 controls and may require third-party assessments depending on your business. Level 3 involves advanced security controls and government-led audits.
Non-compliance with CMMC can result in the loss of DoD contracts, something that can be potentially devastating for SMBs that depend on government work. You may also face legal and regulatory penalties, reputational damage and significant financial costs associated with remediation efforts.
4. GDPR
The General Data Protection Regulation (GDPR) is European Union legislation that governs how organizations handle personal data of EU residents. It’s important note that this law applies to any organization in the world that processes EU resident data, regardless of where your business is located.
Depending on your data processing activities, you may need to appoint a Data Protection Officer, who will act as an intermediary between your SMB, supervisory authorities and data subjects regarding data protection issues.
You must obtain valid consent for data collection and implement systems that support data subject rights, such as the right to access their data or delete or correct it. Any data breaches must be reported within 72 hours, and there should be regular privacy impact assessments and policy updates.
For GDPR non-compliance, your SMB can be fined up to 2% of the business’ previous financial year’s global revenue or €10 million, whichever is higher. More severe GDPR violations can result in fines up to 4% of the previous financial year’s global revenue or €20 million, whichever is greater.
In addition to the stiff financial penalties, violations often result in significant reputational damage and potential legal liability from affected individuals and regulatory bodies.
5. Cyber Insurance
While not a traditional compliance standard, cyber insurance requirements can function as compliance obligations. Each insurance carrier has its own specific security requirements that must be met.
In order to obtain or maintain cyber insurance for your SMB, you need to understand exactly what the coverage requires. This might include specific security measures, employee training programs, certain incident response procedures or regular security assessments. The requirements will vary significantly between carriers and policies.
If you fail to meet your cyber insurance requirements, the insurer can render your coverage null and void precisely when you need it most. This leaves your SMB exposed to the full financial impact of a cyber incident without the protection you thought you had.
6. NIST SP 800-171
While it’s not technically a compliance requirement itself, NIST SP 800-171 is a critical framework that underpins many actual compliance requirements. It is a U.S. federal standard for protecting CUI in non-federal systems and is highly recommended as a voluntary business requirement.
It covers comprehensive security standards, guidelines and best practices designed to help organizations, including SMBs, improve their cybersecurity posture and manage their business risk.
Compliance entails implementing 110 security controls across 14 specific requirement families, including access control, incident response and system monitoring. You’ll need to maintain a System Security Plan, or SSP, a comprehensive document that details how your SMB executes and uses the security controls outlined in the standard.
A Plan of Action and Milestones, or POAM, a plan that details what controls you’re missing, a general plan of action and when to expect compliance, will have to be completed. If you’re a federal contractor, you’ll also have to submit compliance scores to the Supplier Performance Risk System.
7. State Data Privacy Requirements
All 50 states have laws requiring organizations to notify individuals when their personal information has been compromised in a data breach. Some states have additional laws applying to specific industries or types of data.
The trend is clearly toward more robust state-level data privacy and security regulations, creating a complex landscape for businesses operating across state lines.
Start by updating your SMB’s privacy policies and providing opt-out mechanisms where required. Implement systems that can handle data access, deletion and correction requests. You also need to establish reasonable security procedures and practices that align with the state requirements in your operational areas.
Is Your SMB Meeting Its Compliance Requirements?
Compliance starts with understanding your specific requirements, but it may be difficult to navigate the various frameworks and requirements. It is also an ongoing process that involves risk assessments, policy development, staff training and many other working parts to ensure safeguards remain effective.
The consultants at Warren Averett Technology Group can help you navigate your compliance requirements while you operate your SMB. Avoid exposing your business to unnecessary risk and schedule a consultation with a WATG consultant today.
