The Risks of IT Asset Non-Compliance: How to Avoid Catastrophe

As companies scale in the digital marketplace, the need for an updated and compliant information technology (IT) department is at the forefront of business necessity. 

Companies are expected to be in compliance with several emerging laws and regulations that govern how they use consumer data. This includes recent updates to the California Consumer Privacy Act (CCPA), the European Union's General Data Protection Regulation (GDPR), and the new Federal Trade Commission's Customer Privacy Pledge. 

However, many companies are unaware of their current IT assets, and that lack of knowledge can increase compliance issues and pose financial risks. 

The Problem with Aging Technology Assets 

Given the increasing need to protect consumer data, companies are struggling to maintain compliance with these emerging laws while facing hurdles due to aging technology assets.  

In a recent study conducted by the Ponemon Institute and GlobalScape, companies are shown to be spending millions yearly on updated measures to avoid the risks of non-compliance.  

Companies that have evolved through the digital revolution of the past two decades are affected by the use of outdated technologies that lack security measures. Consumer information housed in outdated technology can be subject to breaches and leaks. 

The issue with older technology is that it is difficult, if not impossible, to update the systems with the latest security measures designed to protect against cyberattacks and data breaches.  

Without proper knowledge of asset status and compliance, companies will continue to face a variety of risks as they grow their business: 

1. A False Sense of Compliance 

Companies must have a thorough understanding of their IT assets, including software versions and hardware configurations. 

To maintain compliance with evolving consumer privacy laws and regulations, they must know exactly what information they are collecting from consumers and where that information physically exists. This knowledge will allow them to update systems while working to secure consumer information. 

2. Data Loss and Leaks 

As companies continue to grow their businesses, the amount of consumer data they collect will also increase. As such, more data means a higher risk for security breaches and leaks. In the first few months of 2019 alone, there were more than four billion confidential data records exposed due to leaks and hacks. 

The older the technology is that houses this data, the more likely it becomes subject to cyber-attacks and data breaches. Newer technologies include more security measures, such as encryption and digital rights management, which help protect the data. 

3. System Incompatibility and Compliance Risk 

Business growth is driven by innovation and advancement in technology. The incorporation of new technologies into company systems will allow for increased efficiencies, faster execution, faster access to information, and more. 

However, outdated or incompatible technology will not allow for the integration of these new technologies. If company systems are unable to handle the update, they will be at risk for experiencing technical difficulties that can affect their business operations and compliance efforts. 

4. Non-Compliance Financial Risks 

Companies that are non-compliant with emerging consumer privacy regulations are at risk of incurring financial penalties associated with the violation. Over the past few years, companies that were breached had to pay nearly $8 million on average to recover. 

Not only can companies face extraordinary fines, but they may also be subject to public outrage and loss of consumer trust and stakeholder confidence. 

How Companies Can Ensure Compliance 

To alleviate the risks associated with outdated IT assets, companies must have a thorough understanding of what assets they have, where those assets are located, and what steps they need to take to bring their assets up-to-date. 

By partnering with IT infrastructure resources that give teams a bird's-eye view of the entire IT landscape, companies can create a map that documents everything from hardware and software to security systems. 

Once the company understands its assets, it must ensure those assets are updated with the latest security measures to protect against cyber-attacks and data breaches. 

By partnering with an IT infrastructure provider that offers regular asset scans, companies can gain a complete picture of their IT environment and the status of every asset. 

These steps, along with a full compliance strategy, can help companies maintain compliance requirements and avoid potential financial risks from non-compliance. 

Contact us to learn how we can help your company stay compliant.