Data breaches and hacks can cost companies big time. The key is to ensure that your entire system from servers to smartphones to laptops to websites and any electronic device carrying sensitive information is compliant with data security standards and regulations. The first step to properly evaluate your level of compliance is to conduct a data security audit.
The average cost of a data breach in 2021 was more than $4 million, according to a report by IBM. Whether your company is small or large, cyberattacks may target you because they are usually just looking for weaknesses anywhere and everywhere. As data becomes increasingly digital, companies collect more data than ever from various sources. They use data to make informed business decisions, and with this data collection comes responsibility.
A data security audit is an evaluation of a company’s entire security system to identify areas of vulnerability. It is a preventive measure to protect sensitive information against breaches of any kind. A security audit also shows whether your company is compliant with governmental and organizational data security regulations.
There are two major types of audits: internal and external. An internal audit takes places when your staff direct and handle the process. These are usually quick and cost less money. The external audit is when a professional IT firm or consultant performs the audit. While these cost more, they tend to be more thorough and can identify areas that your team would overlook as well as expand your expertise on these evolving challenges. Also, external auditors give unbiased observations and can report things that internal staff might not mention due to internal politics. Whoever is conducting the audit must have complete access to the company and its security system. If you’re not comfortable with having a third party access sensitive data, you can always conduct an internal audit.
Common methods for performing a data security audit include the formal auditing conducted by internal or external auditors, automated or manual scans of data assets, systems, and networks using software or hardware tools, simulated attacks on the data assets, systems, and networks using ethical hacking techniques, and questionnaires or interviews with the data stakeholders to collect feedback and assess data security awareness. An audit also assesses security systems to ensure they meet security regulations and industry standards.
The data security audit starts with planning and defining the scope of the audit. Before you begin, review reports from past security audits. The new audit should cover every part of your system and company that can access data, including staff. The auditor will need to gain a thorough understanding of the existing security infrastructure and a list of all personnel who could impact security. If you use an external auditor, it’s important to plan a budget and prepare relevant documents that are needed for the audit.
The data security audit should include every device that can send and receive data – basically, anything with Internet access. In addition, the auditor should interview all staff who work in a security capacity or otherwise have access to the company’s data. The auditor should check if your data security processes meet industry standards.
The main purpose of the data security audit is to identify any weaknesses in your system. After identifying the risks, auditors categorize and prioritize them. What areas need immediate attention? Is your security system strong enough? Does the incident response process need an update? A careful audit of every aspect of your data security system will answer questions like these. Other goals for a new audit may be to become more compliant with industry standards and regulations, or to cover a wider scope than previous efforts.
Some pitfalls to be aware of are poorly defined scope and audit requirements, only covering some aspects of your systems, or ignoring the data because entrenched voices don’t want to change and push back at the validity of your findings.
Keep a record of all observations made during the audit. The report is a point of reference when fixing any non-compliance and vulnerabilities issues in your security system. The final report should also cover recommendations to fix any problems that are discovered. Security audits should be conducted at least annually with ongoing monitoring to maintain vigilance.
