Does your business need to follow specific supply chain compliance mandates?
Depending on your industry and the nature of your business, you might be required to protect your data under certain regulations.
Do these regulations apply to you?
Keep reading to learn about the top three most common supply chain compliance regulations now.
Top 3 Regulations That Incorporate Supply Chain Compliance
Let’s look at the most common supply chain regulations and what they say about supply chain compliance.
#1• The Healthcare Portability and Availability Act (HIPAA)
In short, HIPAA protects patient data. If you fail to establish a business associate agreement that defines the way your third-party vendors/partners manage personal health information (PHI) or electronic PHI (ePHI), you will be held culpable and fined suitably.
#2• The EU’s General Data Protection Regulation (GDPR)
GDPR’s infamous 72-hour breach notification rule applies to both data controllers (your business) and data processors (your supply chain). Even in the event of a security breach at your vendor’s end, you are responsible for notifying your customers within 72 hours.
#3• The Cybersecurity Maturity Model Certification (CMMC)
If you are a member of the Defense Industrial Base (DIB), the U.S. Department of Defense (DoD) lays equal emphasis on your business and your supply chain. Both must earn the necessary levels of certification (defined under CMMC) by demonstrating compliance with NIST CSF 800-171 requirements.
The Cost Of Non-Compliance: Millions In Fines For Marriott International
Wondering whether non-compliance with these regulations has ever cost a business dearly?
Take Marriott International as an example:
In November 2018, the hospitality giant was fined under GDPR for a data breach that exposed over 339 million guest records.
Even though the breach originated from a third party vendor in their supply chain, Marriott was still held liable for the breach. Following a two-year investigation, the company ended up facing £18.4 million in fines.
Marriott International is just one example of the price companies have to pay for not detecting and mitigating a prudent supply chain risk.
How To Proactively Protect Your Supply Chain & Remain Compliant
Now that you know what you’re up against, let’s cover a few precautionary measures to help you protect your supply chain and remain compliant.
- Assess your security and compliance posture thoroughly: Make sure both your business and your supply chain are compliant at all times.
- Ask the right questions and demand checks/balances: Be prepared to quiz your supply chain on whether they mirror your business’ security and compliance posture.
- Make data integrity and structure a requirement: Let your third-party vendors and partners know how crucial it is for them to ensure that data is stored, managed, and secured properly.
- Commit to ongoing compliance management: Demonstrate your commitment to full compliance within your supply chain by monitoring threats and presenting evidence that you are following necessary regulations.
- Assume the worst-case scenario and prepare for it: Remember this throughout the process of ensuring supply chain compliance and remind your third-party partners to have this same mindset.
Set Up Your Supply Chain Compliance Strategy Now
When it comes to supply chain compliance, you can never be too careful.
If you’re wondering how to start implementing the proactive measures we just mentioned, you can start by talking to someone who knows the ins and outs of HIPAA, GDPR and CMMC regulations.
Make sure you’re fully protected by partnering with the trusted IT consultants at Third Power IT. We’ll map out the whole journey for you and help you through it each step of the way.
Call us now at 844-677-3687 or visit www.ThirdPowerIT.com to get started.
The post Supply Chain Compliance: What You Need To Know About HIPAA, GDPR, CMMC & More appeared first on Third Power IT – Managed IT Services.
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