Whether you’re a healthcare clinic in Midland, a car dealership in San Antonio, or a government contracting agency in El Paso, there’s one thing your industries have in common. Data compliance is not optional. Skipping a compliance requirement isn’t just risky in the event of a breach or cyberattack. Neglecting managed compliance can result in substantial audit fines, halted operations, or the loss of vital business contracts.
Here at Varay Managed IT, we handle the technical complexity so you can stay focused on serving your Texas community. Let’s take a look at some data compliance basics, so you can determine where your business stands.
The 3 Different Levels of Data Compliance
When people hear “compliance,” they often think of just one rulebook. In reality, most organizations are subject to multiple overlapping layers of requirements. Generally, these fall into three broad categories.
1. Insurance Compliance Requirements
At the most basic level are liability insurance requirements. Cyber insurers now expect businesses to maintain minimum cybersecurity standards. If you suffer a breach and can’t prove that you had controls in place, your claim may be denied, leaving you liable for six or seven-figure costs.
2. Industry-Specific Compliance Requirements
Next are industry-specific requirements. For healthcare providers, HIPAA mandates strict safeguards around Protected Health Information (PHI). In 2023, HIPAA fines totaled more than $4 million across 13 enforcement actions. For auto dealerships, the FTC Safeguards Rule requires strong data protections for customer Personally Identifiable Information (PII). Violations can result in penalties of up to $100,000 per incident. Government contractors face their own hurdles, too. Compliance with NIST SP 800-171 is now a prerequisite for many federal contracts. Without it, you may not even be eligible to participate in the bidding process.
3. Government Compliance Requirements
Finally, there are country or government-level regulations that apply to businesses with international customers. The EU’s General Data Protection Regulation (GDPR) requires strict consent and privacy protocols. Even if you’re based in Texas, emailing or selling to European customers puts you under GDPR rules, with potential penalties of up to €20 million or 4% of global revenue for infractions.
What Compliance Really Covers
Data compliance is broader than most business owners realize. It goes beyond simply encrypting files or locking down servers. True compliance touches on three main areas:
- Data retention: How long you’re required to keep information, and when it must be securely destroyed.
- Data privacy: How personal or sensitive data is collected, stored, shared, and protected.
- Communication: Email archiving, VoIP call records, and even text message retention can fall under regulatory scrutiny.
For Texas businesses, overlooking even one of these areas could expose you to lawsuits, fines, or lost business opportunities.
Frameworks That Simplify Compliance
The compliance landscape can feel like alphabet soup: HIPAA, PCI DSS, GDPR, NIST, and FTC. To cut through the confusion, many organizations rely on established frameworks that provide a structured roadmap.
CIS Controls Framework
One of the most widely recommended is the CIS Controls. Developed by the Center for Internet Security, these best practices provide prioritized actions to reduce risk. They cover everything from access controls to vulnerability management. For small businesses, CIS is especially helpful because it breaks complex cybersecurity challenges into manageable steps.
NIST SP 800-171 Framework
Another critical framework is NIST SP 800-171. Initially created for federal contractors handling Controlled Unclassified Information, it has become a benchmark for organizations of all sizes. It outlines 14 control families, covering areas like incident response, system integrity, and personnel training, with over 100 specific requirements.
These frameworks provide a clear, defensible approach to protecting data and preparing for audits. However, they can be overwhelming to put into practice, especially for Texas SMBs that don’t have a robust IT team. For smaller organizations, it’s often more cost-effective to outsource IT services like managed compliance. (And rest easy knowing the experts have it covered!)
The Real Cost of Noncompliance
It’s tempting to think of compliance as just another box to check. But the financial and operational consequences of getting it wrong are severe. The average cost of a data breach in the United States reached $9.48 million in 2023.
For small businesses, the financial impact of a data breach and noncompliance fines is catastrophic. In fact, 60% of small businesses close within six months of a cyberattack. And just because you’re small, it doesn’t mean you’re not a big target for bad actors. Today, almost 46% of all breaches target companies with fewer than 1,000 employees.
Consider a Midland healthcare clinic facing a HIPAA violation. A single breach of 500 records could trigger six-figure penalties. Or imagine a San Antonio car dealership accidentally sending unencrypted credit applications via email. Each unsecured transmission could cost tens of thousands in fines. A government contractor in El Paso without NIST 800-171 controls risks losing out on contracts before they even start work.
The bottom line: the cost of noncompliance far outweighs the investment required to manage compliance properly.
A Quick Compliance Self-Assessment
Not sure where you stand? Here are a few simple questions to gauge your risk:
- Do you have written policies for data retention, privacy, and communication?
- Are you confident you’re meeting your industry’s specific compliance requirements (HIPAA, FTC Safeguards Rule, NIST 800-171)?
- Have you adopted a framework, such as CIS Controls or NIST 800-171, to guide your strategy?
- Is someone in your organization formally responsible for compliance monitoring?
- Have you had an external audit or risk assessment in the past 12 months?
If you answered “no” to any of these, your business may be noncompliant and vulnerable to a cyberattack or data breach. The good news is that you don’t have to go it alone.
Let us review your IT setup before an auditor or a hacker finds the gaps.
Book a Free Discovery Call with Varay
Why Most Businesses Outsource Compliance
For most Texas businesses, compliance is too complex to manage internally. Regulations evolve constantly, and appointing a full-time compliance officer is often too costly. Even larger organizations struggle to stay ahead without outside support.
That’s why outsourcing managed compliance makes sense. With Varay, you get a team that monitors requirements, updates policies, and keeps you audit-ready, without the overhead of hiring internally. We understand the local industries we serve across San Antonio, Midland, Odessa, and El Paso, and we tailor compliance solutions to fit your unique business needs.
Turn Compliance Into a Competitive Edge
Data compliance doesn’t have to be a burden. With the right partner, it can become a competitive advantage, proving to your clients, patients, and partners that their information is in safe hands. Instead of scrambling when an audit or breach happens, you can rest easy knowing your systems are prepared, documented, and aligned with industry best practices.
If you’re ready to take the stress out of compliance, Varay can help. Book a discovery call today, and protect your business from costly legal headaches while freeing you to focus on growth.
