What are the Consequences of Compliance Violations?

When dealing with data, especially private client or customer data, it is essential that business owners are doing what they can to protect it. However, the business owner does not set the standards for what kind of protections they must provide.

There are various regulatory bodies that will determine what rules you must be compliant with. If you are responsible for compliance violations in your business, there could be consequences. Let’s look at the compliance requirements, how they are violated, and what consequences can follow as a result.

What are the Current Compliance Requirements? 

There are several compliance standards active at the moment. Whether or not your business has to follow these requirements will largely depend on what industry you are in and what type of data you handle. The most common current requirements are follows:


The National Institute of Standards and Technology compliance requirements is primarily a series of cybersecurity controls across a range of industries, most famously the NIST Cybersecurity Framework.


The Defense Federal Acquisition Regulation Supplement requirements are a set of security controls specifically for any contractors that use information systems in handling Controlled Defense Information, typically those contracting or subcontracting for the Department of Defense.


The Cybersecurity Model Certification is a standard for cybersecurity protections used across the defense industrial base.


The Health Insurance Portability and Accountability Act outlines a range of standards designed to protect protected health information in the US, and outlines how it should be lawfully used, disclosed, and updated.

Why Are They Important?

These compliance standards are important for a variety of reasons. Cybercrime is on the rise, costing billions of dollars in damage each and every year. The standards mentioned above are all designed to prevent the breach of data by ensuring that businesses responsible for that data do their part in protecting it.

Without the right standards in place, sensitive data is much more vulnerable. Professional and trusted IT companies can make sure that isn’t the case.

What Are the Consequences For Not Complying?

The clearest consequences for not complying with whichever of the security standards apply to your business is fine. For instance, HIPAA violations come with a minimum penalty of $100 per violation but can reach as high as $1.5 million per calendar year.

Consequences can also include the loss of a license to operate within your industry or even jail time. There are many non-punitive potential consequences, as well, such as the loss of customer and client trust.

How They Protect Your Business

First of all, they protect your business by ensuring that you’re protected against a range of cybersecurity threats, or at least doing your best reasonable efforts to prevent breaches and protect data.

They also help ensure that the data of your clients and customers are safeguarded, which helps to establish trust with those user bases. They protect you from liability in the event of a breach, as well, so long as they are being followed.