Navigating Compliance: How MSPs Can Protect SMBs

Cyberattacks on big players like Boeing, Dell and Ascension Healthcare have been in the news recently, but small-to-midsize businesses (SMBs) are increasingly also being attacked by cybercriminals. According to Accenture's Cost of Cybercrime Study, 43% of cyberattacks are aimed at small businesses, yet only about 14% feel adequately protected.

Why the increasing attacks on SMBs? Because smaller companies are believed to have weaker security protection, making them lucrative targets. Consequently, there's been a bigger push for stricter enforcement of cybersecurity compliance standards, especially for SMBs. While smaller companies may think that compliance requirements only apply to larger companies, that isn't the case.

Strategic Importance of Compliance Management

As a managed service provider (MSP), your company is the primary defense for your customers against cyber threats. If you haven't started a compliance program yet, now is the time, as compliance demands have exploded. Noncompliance can pose security risks, lead to trouble with regulators and customers and create big financial impacts. It's not about whether compliance management is important for your MSP business, but rather how effectively you can integrate and leverage it to protect your clients.

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Today, customers rely on MSPs to protect their data. The landscape has changed — SMBs are more of a target than ever, and "bad actors" have become more sophisticated. For example, only a few years ago, ransomware was the primary form of attack, spawning an entire industry focused on preventing and containing these threats. However, hackers have evolved and now take advantage of uneducated users, unprotected systems and the misconception that SMBs aren't targets.

Modern breaches often involve compromised mailboxes allowing attackers to patiently observe, learn how to create invoices, identify overdue payments and determine who is responsible for collections. With this knowledge, they have everything they need to steal from both your customers and your clients' customers.

Proper compliance management helps MSPs avoid penalties, demonstrates their commitment to protecting customer assets, and provides clients with peace of mind.

Challenges

MSPs face two main challenges when it comes to compliance management.

Best Practices

MSPs should adopt these best practices to effectively manage compliance and security:

Understand relevant regulations: Compliance requirements vary depending on what industry your customers are in and the type of data they're collecting.

For example, customers handling credit card transactions need to comply with the Payment Card Industry Data Security Standard (PCI DSS). If you have SMBs in health care, they will need to adhere to the Health Insurance Portability and Accountability Act (HIPAA). Clients dealing with customers in Europe will need to comply with General Data Protection Regulation (GDPR) requirements. As your customers' trusted expert, it's important that you understand the compliance requirements that may impact their businesses.

The National Institute of Standards and Technology (NIST) standards offers guidance to MSPs on how to manage the complexities of cybersecurity risks. This is a great first place to start as NIST is considered the gold standard for IT security practices in the industry.

Define your service scope: Begin by outlining the breadth of your compliance services. If possible, tailor your offerings to a specific industry so you can optimize your ability to select the most appropriate security and compliance frameworks for your customers.

Once your scope is defined, understand what it will take from a resources and time perspective to deliver these services. You will be providing a valuable service that your customers need and you should expect to get paid for your time and effort.

Conduct regular risk assessments and identify compliance gaps: Performing regular risk assessments is a key step for managing compliance. This involves auditing a client's IT infrastructure to identify potential threats of data breaches and to make sure their infrastructure meets specific regulatory and industry standards.

After the risk assessment, identify any gaps or noncompliance in your customer's system and take corrective actions to address the vulnerabilities identified.

The security tech stack should also include specific tools to protect against cyberattacks and data breaches. The key tools include endpoint protection, network security, threat intelligence and, in some cases, managed detection and response (MDR) resources. Develop a program first that aligns to a standard and fits your customers' needs, then build your tech stack to fit your program.

Selling Security and Compliance

Convincing clients to invest in cybersecurity can be tough, especially for SMBs with limited budgets or that lack the understanding of today's modern security risks. Here are a few tips to help educate customers.

By integrating robust tech stacks, educating clients about security and emphasizing the importance of compliance, MSPs can effectively protect SMBs against cyber threats and build resilient cybersecurity and compliance programs. Today, compliance is as critical as cybersecurity, and MSPs need to embrace tools and strategies that ensure their clients aren't just protected but also compliant.