In 2018, British Airways suffered a massive data breach that exposed the personal and financial details of 400,000 customers. Hackers redirected users to a fake website, where their payment details were stolen. 

This breach could have been prevented if British Airways had followed IT compliance requirements mandated by the General Data Protection Regulation (GDPR), like stricter access controls and encryption.

The UK’s Information Commissioner’s Office (ICO) fined British Airways £20 million, citing its failure to secure customer data. But the damage went beyond financial penalties. Customers lost trust, lawsuits followed, and the airline faced intense scrutiny.

This incident highlights that IT compliance isn’t just about avoiding fines, it’s about protecting systems, customers, and business continuity. 

This article explains IT compliance, including the key regulations businesses must follow, and how to implement compliance measures that reduce risks and strengthen security.

What Is IT Compliance?

IT compliance involves following industry regulations, legal requirements, and security standards to ensure data protection, system integrity, and customer privacy. 

Regulations set guidelines for how businesses collect, store, and manage sensitive information, helping prevent security breaches, fraud, and legal liability.

IT compliance covers a wide range of legal, industry, and contractual requirements. While specific regulations vary by sector, most fall into the following categories:

  • Regulatory compliance: Government-enforced rules that protect data privacy, system security, and operational integrity. These laws often carry financial penalties for violations. Typical examples are GDPR or the NIS2 Directive in Europe.
  • Industry standards: Best practices developed for specific sectors, ensuring consistent security, service quality, and risk management across businesses. As an example, we can mention the PCI-DSS standard for the payment card industry or HIPAA for the healthcare industry.
  • Security frameworks: Guidelines that help organizations strengthen cybersecurity, detect threats, and prevent data breaches. These frameworks are not always legally required but are often used to meet compliance regulations, for example ISO 27001 or SOC 2.
  • Operational compliance: Ensures that IT systems remain functional, secure, and available, covering areas such as uptime guarantees, disaster recovery, and incident response.
  • Contractual compliance: Businesses often commit to security and service obligations through service-level agreements (SLAs), customer contracts, and partner agreements. Failing to meet these commitments can result in financial or legal consequences.

While IT compliance regulations vary by industry, most share a core set of security and operational requirements, which usually include:

  • Data encryption
  • Access controls
  • Incident response planning
  • Regular audits and risk assessments
  • Employee security training
  • Third-party security management

IT Compliance Benefits and Challenges

IT compliance is more than about avoiding fines. It’s a critical safeguard against security threats, operational failures, and damage to relationships with customers and business partners.

Why take IT regulatory compliance seriously? Here are the four main reasons:

  1. Reduces security risks: It’s more likely that cybercriminals successfully breach businesses with weak security controls. Compliance frameworks require businesses to maintain basic cybersecurity hygiene, such as encryption, access controls, and threat monitoring, which helps prevent breaches and insider threats.
  2. Ensures operational stability: Compliance often involves having plans for unexpected events, crashes, outages, etc. It may also require creating disaster recovery plans, uptime guarantees, and system resilience measures to ensure businesses remain operational during IT failures or cyberattacks.
  3. Builds customer and partner trust: Organizations that adhere to IT compliance standards are less likely to suffer reputational damage. Customers and partners, especially in B2B, are more inclined to work with businesses that protect data and follow industry standards.
  4. Strengthens competitive advantage: Many enterprise customers require vendors to meet compliance standards before signing contracts. Certifications like SOC 2 (Service Organization Control Type 2) or ISO 27001 can be a differentiator in winning new business.

However, achieving and maintaining IT compliance often isn’t straightforward. Typical IT compliance issues facing businesses include:

  • Keeping up with changing regulations – Compliance standards evolve, and businesses must adapt to new data privacy laws, security frameworks, and industry mandates, especially those that require certification renewal, such as ISO 27001 (every three years).
  • Managing multiple compliance requirements – Many companies must comply with several overlapping regulations. For example, an international business may need to follow GDPR, PCI-DSS, and ISO 27001 simultaneously.
  • Balancing security with usability – It’s not uncommon for strict security policies to frustrate employees and customers when they create too much friction. This can lead to employees attempting to bypass regulations or simply failing to comply. For example, a poorly functioning VPN that is required by company policy can frustrate employees, leading them to look for ways to bypass its use.
  • Cost of compliance – Meeting IT compliance standards requires security tools, audits, and legal expertise. All of this can be expensive, especially for growing businesses.
  • Human errors and insider threats – Even with strong security measures in place, misconfigurations, employee mistakes, and lack of training can create compliance gaps.

9 Examples of IT Compliance Requirements

Different industries and organizations must follow various IT compliance regulations to protect sensitive data, ensure system integrity, and meet legal obligations. For example, the NIS2 Directive in Europe affects only certain industries and businesses above a specific size.

However, while the details vary, most frameworks focus on securing information, preventing fraud, and ensuring that critical systems remain operational. 

Below are nine key compliance frameworks and how they impact business IT operations.

1. ISO 27001: Global Information Security Standard

For companies operating internationally, ISO 27001 is a widely recognized information security management framework. ISO helps businesses create information security management system (ISMS) which can be thought as a set of IT security policies, procedures, and risk management strategies. 

Compliance involves establishing security roles, defining access controls, and implementing ongoing security improvements to protect digital assets. 

Some of the requirements relevant to IT teams include:

  • Leadership commitment: ISO 27001 requires top management involvement to ensure information security is a core business function. IT teams don’t operate in isolation, they need executive support to enforce policies.
  • Risk assessment and treatment: Organizations must conduct formal risk assessments and apply security controls based on risk levels. IT teams are responsible for implementing and maintaining these controls.
  • Continuous monitoring and improvement: Compliance is not a one-time certification. Thus, IT teams must ensure ongoing audits, security monitoring, and policy updates.

Many organizations pursue ISO 27001 certification to demonstrate commitment to security best practices, reduce cybersecurity risks, and gain a competitive advantage when dealing with global partners.

2. NIS2: Strengthening Cybersecurity Across European Union

    The Network and Information Security Directive 2 (NIS2) is an EU-wide cybersecurity law that aims to improve cyber resilience across the member states and internal market. It applies to many public and private entities from various sectors such as energy, banking, healthcare, finance, and digital infrastructure. 

    It replaces the original NIS Directive, introducing stricter security requirements, expanded scope, and stronger enforcement mechanisms. Non-compliance can result in substantial fines, with executives held personally accountable for cybersecurity failures.

    Organizations affected by NIS2 must comply with enhanced security and reporting obligations, including:

    • Risk-based security management: Implement proactive cybersecurity measures tailored to industry-specific risks.
    • Incident reporting requirements: Report major security incidents within 24 hours and provide a full report within 72 hours.
    • Supply chain security: Ensure that third-party vendors and service providers meet NIS2 compliance standards.
    • Continuous monitoring and resilience planning: Establish systems for detecting threats and maintaining service availability.
    • Executive accountability and penalties: Senior management is responsible for compliance, with potential legal consequences for negligence.

    While NIS2 and FISMA (covered later) both mandate risk-based security controls and audits, NIS2 extends beyond government agencies, focusing on important industries that impact public safety and economic stability. 

    IT teams must work closely with executive leadership to ensure security strategies align with both regulatory demands and business continuity goals.

    → For a more detailed breakdown of NIS2 and how log management and SIEM help businesses to ensure compliance, see our dedicated blog on NIS2 compliance.

    3. GDPR: Protecting personal data and privacy

      The General Data Protection Regulation (GDPR) is the EU’s flagship data privacy law, designed to give individuals control over their personal data. It applies to any organization worldwide that collects, processes, or stores data belonging to EU citizens. 

      GDPR enforces strict rules on data handling, user consent, and security practices, with non-compliance leading to significant financial penalties. This can be up to €20 million or 4% of annual global turnover, whichever is higher.

      IT teams play a crucial role in ensuring GDPR compliance by implementing technical and procedural safeguards, including:

      • Data encryption and access controls: Protect personal data from unauthorized access and ensure only authorized personnel can view sensitive information.
      • Secure data storage and retention: Store personal data securely, ensuring compliance with GDPR’s data minimization and retention principles.
      • Supporting data subject rights: Enable users to access, correct, delete, or transfer their personal data upon request.
      • Incident response planning: Detect, report, and respond to data breaches within GDPR’s 72-hour notification window.
      • Regular audits and compliance monitoring: Continuously assess and improve data security policies to align with evolving regulations.

      Failure to comply can lead to significant penalties. A notable example was Amazon’s €746 million fine for improper data processing practices under GDPR. 

      The fine was issued following a 2018 complaint by the French privacy rights group La Quadrature du Net, which alleged that Amazon’s advertising targeting system was conducted without proper consent.

      This case highlights the risks of not aligning internal data policies with compliance laws, leading to both financial and reputational damage.

      4. HIPAA: Protecting Healthcare Data

      The Health Insurance Portability and Accountability Act (HIPAA) is a U.S. federal law designed to protect patient health information (PHI) from unauthorized access, misuse, and breaches. 

        It applies to healthcare providers, insurers, and any third-party service that handles medical data. HIPAA violations can result in significant financial penalties, legal action, and reputational damage.

        IT teams in healthcare and related industries must ensure strict security controls to comply with HIPAA, including:

        • Data encryption and access controls: Protect electronic health records (EHRs) with strong encryption and enforce role-based access restrictions.
        • Secure storage and transmission of PHI: Ensure that all patient data, whether stored or transmitted, is protected against unauthorized access or interception.
        • Audit logging and monitoring: Maintain logs of all data access and modifications to detect unauthorized activity and comply with audit requirements.
        • Incident response and breach notification: Have protocols in place to detect, contain, and report data breaches within 60 days, as required by HIPAA’s Breach Notification Rule.
        • Regular risk assessments and compliance training: Conduct periodic security assessments and educate employees on data protection best practices.

          Unlike GDPR, which applies to all personal data, HIPAA is specific to healthcare information and focuses on securing patient records.

          5. PCI-DSS: Securing Payment Card Data

          The Payment Card Industry Data Security Standard (PCI-DSS) is a set of security policies designed to protect credit card transactions and payment data from fraud and breaches. 

          It applies to any organization that processes, stores, or transmits cardholder data, including retailers, e-commerce platforms, and payment processors. 

          Non-compliance can result in fines, increased transaction fees, and even the loss of the ability to process payments.

          To meet PCI-DSS requirements, IT teams must implement strict security measures for payment data, including:

          • Network segmentation and firewalls: Isolate payment systems from other networks and configure firewalls to block unauthorized access.
          • Encryption and tokenization: Encrypt cardholder data during transmission and use tokenization to reduce exposure of sensitive information.
          • Access controls and authentication: Limit access to payment data on a need-to-know basis and enforce multi-factor authentication (MFA) for all administrative users.
          • Vulnerability management and patching: Regularly test for security vulnerabilities, apply software updates promptly, and perform quarterly network scans.
          • Logging and monitoring: Implement centralized logging for real-time fraud detection and retain logs for at least one year as required.

          Unlike GDPR or HIPAA, PCI-DSS is not a government-enforced law, but compliance is mandatory for businesses that accept credit card payments. 

          IT teams must work with payment processors and security vendors to maintain a secure payment environment and prevent fraud.

          6. SOC 2: Ensuring Trust in Cloud and SaaS Security

          Service Organization Control 2 (SOC 2) is a voluntary cybersecurity framework developed by the American Institute of Certified Public Accountants (AICPA). It applies to cloud service providers, SaaS companies, and any organization handling customer data in the cloud. 

            IT teams need to continuously monitor security controls, document compliance efforts, and prepare for audits to maintain SOC 2 status.

            SOC 2 compliance is based on five trust service criteria, which IT teams must align with:

            • Security: Protect customer data through firewalls, intrusion detection, and access controls.
            • Availability: Ensure systems remain operational with redundancy, uptime monitoring, and disaster recovery plans.
            • Processing integrity: Prevent unauthorized data modification by implementing secure software development and audit trails.
            • Confidentiality: Encrypt sensitive customer data and restrict access based on role-based permissions.
            • Privacy: Enforce data protection policies that align with privacy agreements and user expectations.

            Unlike PCI-DSS or HIPAA, which focus on specific industries, SOC 2 is designed to demonstrate trustworthiness by ensuring companies follow best practices for data security, availability, and privacy.

            Unlike ISO 27001 which grants companies a formal certification after passing an accredited audit, SOC 2 does not provide certification. 

            Instead, companies undergo an independent audit and receive a SOC 2 report assessing how well they meet security standards. This report demonstrates compliance to customers and partners, but there is no official certification process. 

            7. GLBA: Safeguarding Financial Data

            The Gramm-Leach-Bliley Act (GLBA) is a U.S. federal law that requires financial institutions to protect customer data and inform individuals about how their personal financial information is shared. 

              It applies to banks, lenders, insurance companies, and businesses handling nonpublic personal information (NPI). Non-compliance can result in regulatory fines and increased scrutiny from financial regulators.

              To comply with GLBA, IT teams must implement security measures to protect financial data, including:

              • Data encryption and access controls: Ensure NPI is encrypted in storage and transit, with strict role-based access policies.
              • Risk assessments and security policies: Conduct regular audits to identify vulnerabilities and update security protocols.
              • Vendor security management: Ensure third-party service providers handling financial data comply with GLBA security standards.
              • Incident detection and response: Monitor for unauthorized access or data breaches and establish clear reporting procedures.
              • Employee training on data protection: Implement security awareness programs to prevent phishing attacks and insider threats.

              8. FISMA: Strengthening U.S. Federal Information Security

              The Federal Information Security Modernization Act (FISMA) of 2014 aims to modernize cybersecurity practices for U.S. federal agencies and their contractors. It requires the Department of Homeland Security (DHS) to play a central role in overseeing federal cybersecurity efforts, while the Office of Management and Budget (OMB) enforces compliance. 

              Non-compliance can lead to loss of government contracts, increased regulatory scrutiny, and security risks.

              Organizations working with federal data must meet FISMA 2014 compliance by implementing:

                • Continuous monitoring and risk assessment
                • NIST security controls
                • Breach detection and reporting
                • Formal security audits and compliance reviews
                • Stronger oversight from DHS and OMB

                9. SOX: Financial reporting security

                The Sarbanes-Oxley Act (SOX) was introduced to combat corporate fraud and protect investors by ensuring the accuracy and integrity of financial reporting. 

                Publicly traded companies must establish internal controls, audit processes, and security measures to prevent financial data tampering.

                While SOX primarily focuses on financial accountability, IT teams play a critical role in compliance. They must secure financial records, implement access controls, and maintain audit logs to prevent unauthorized data changes. 

                IT teams are also responsible for monitoring financial systems, ensuring data integrity, and supporting audit investigations.

                  How to Implement and Maintain Compliance Standards

                  Achieving and maintaining IT compliance can be challenging, especially as regulations evolve and vary across industries. While there is no one-size-fits-all solution, the steps below outline a practical approach IT teams can take to help align with compliance standards and sustain them over time.

                  1. Conduct a compliance gap analysis

                  Before making any changes, organizations must assess where they currently stand against regulatory requirements. This involves:

                  • Reviewing existing security policies and controls.
                  • Auditing IT infrastructure and data protection measures.
                  • Identifying and fixing non-compliance.

                  A formal gap analysis report helps IT teams prioritize improvements based on risk levels and business impact.

                  2. Develop a remediation plan

                  Remediation is when you fix compliance gaps. You need to create a structured remediation plan to do this effectively. This should include:

                  • Implementing new security controls where needed.
                  • Updating access management policies to allow users the minimum level of access necessary to perform their tasks.
                  • Addressing vulnerabilities in infrastructure, software, and data storage.

                  A remediation plan should assign clear responsibilities and set deadlines to ensure changes are completed promptly.

                  3. Establish clear policies and procedures

                  Regulatory compliance requires documented policies that define:

                  • How data is collected, processed, and stored in compliance with laws like GDPR.
                  • Access control mechanisms, including multi-factor authentication (MFA) and role-based permissions.
                  • Incident response procedures, ensuring security breaches are correctly handled and reported within required timeframes.

                  These policies must be easily accessible and regularly updated to reflect new risks and regulations.

                  4. Train employees on compliance best practices

                  Many compliance violations stem from human error, making security awareness training essential. IT teams should:

                  • Educate staff on data protection responsibilities.
                  • Train employees to recognize phishing attacks and security threats.
                  • Establish secure handling procedures for sensitive information.

                  Regular compliance refreshers ensure that security remains a priority across the organization.

                  5. Implement continuous monitoring and auditing

                  Compliance is not a one-time achievement, it requires ongoing oversight. IT teams should:

                  • Use automated monitoring tools to detect policy violations and security incidents.
                  • Conduct regular internal audits to verify compliance with security frameworks.
                  • Schedule third-party assessments for certifications like SOC 2 and ISO 27001.

                  Monitoring systems should generate reports to demonstrate compliance efforts to auditors and regulators.

                  6. Stay up to date with regulatory changes

                  Compliance standards evolve over time, meaning IT teams must:

                  • Track updates to regulations affecting their industry.
                  • Regularly review and update security policies.
                  • Ensure that compliance software and monitoring tools remain effective.

                  By embedding compliance into day-to-day IT operations, businesses can reduce risk, avoid penalties, and maintain regulatory alignment.

                  Simplify IT Compliance with Logmanager

                  IT compliance is more than just a legal obligation, it’s critical to protecting your business, securing customer data, and building trust. 

                  Regulations like GDPR, PCI-DSS, SOC 2, and NIS2 set the standards, but ensuring ongoing compliance requires constant monitoring, risk assessment, and strong security controls.

                  Keeping up with evolving regulations while managing security threats can be a challenge. 

                  Logmanager simplifies the process by providing centralized log data collection for threat detection, alerting, and investigation, as well as long-term event log storage and reporting for compliance purposes. These features help organizations to stay ahead of risks and meet regulatory requirements.

                  → If you’d like to learn more, visit our dedicated IT compliance page or book a demo to see how Logmanager can help your organization stay secure, compliant, and audit-ready.