From GDPR, NIS2, and DORA capturing headlines in the EU, to NIST and new cybersecurity rules from the SEC bubbling up in the US – both new and existing regulations, frameworks, and standards are constantly emerging and evolving.
The focus is unsurprising given the current threat landscape. For example, the 2024 UK Government Cyber Security Breaches Survey revealed that 50% of UK businesses had suffered a cyberattack or security breach in the previous 12 months – a significant increase from the 39% record in last year’s survey.
It’s a spike that’s been driven by several interconnected factors. Indeed, the proliferation of digital risks has been significant in recent years, with companies having transitioned to cloud-centric models and become tech-first organizations reliant on a wide array of applications.
The pandemic accelerated this shift, with numerous firms transitioning to the cloud almost overnight to sustain operations amidst stay-at-home orders. However, with this rapid move having prioritized access and usability over security, several significant challenges related to cloud misconfigurations and vulnerabilities have emerged.
Threat actors have been quick to exploit these vulnerabilities, continuously adapting and evolving their methods. As companies’ digital presences and attack surfaces expand, cyber crime has increasingly become the domain of highly sophisticated and often nation-state-backed criminal organizations working to seize ever-expanding opportunities.
We see this in the recent surge in supply chain attacks. Threat actors have increasingly been targeting the weakest links in an organization’s ecosystem of partners and suppliers, compromising less secure entities in an effort to infiltrate extensive enterprise networks. A notable example is the 2023 attack on Progress Software’s MOVEit file transfer app, which affected an estimated 2,600 organizations and 77.2 million people.
Challenges for SMEs and the role of compliance frameworks
Naturally, companies are turning to guidance and best practices – either voluntarily or due to mandatory compliance requirements – to better manage their risks and protect themselves from evolving threats.
It’s a sensible move. After all, these frameworks have been specifically designed to help organizations protect their data and systems from attacks which could result in significant reputational damages, financial losses and legal consequences. However, aligning with these demands is easier for some enterprises than others.
Whilst larger organizations have traditionally led the charge in prioritizing compliance, the growing threat of supply chain attacks is now compelling their suppliers, partners, and vendors to demonstrate compliance and security as well. And for those small- and medium-sized enterprises (SMBs) that lack the financial resources and in-house expertise of larger firms, compliance with key security regulations, standards, and guidelines can be a daunting task.
As threat actors advance their methods, compliance frameworks must evolve in tandem to help firms better protect themselves with relevant recommendations. Consequently, these frameworks are becoming more demanding, comprehensive, technical and complex.
As a result, compliance is becoming more time-consuming and costly, often requiring significant cultural and structural changes within a business. Furthermore, a major challenge with guidelines such as NIS2 and DORA is that they are just that – guidelines.
They are not detailed, plug-and-play checklists that are straightforward to follow. Instead, their application varies based on the unique structure, setup, industry and context of each business. While businesses must conform to these guidelines, the interpretation of how to do so is left to them, which can be confusing.
For companies with limited knowledge, determining which solutions to adopt and which practices to embrace isn’t always clear, and this uncertainty can complicate efforts to achieve compliance and maintain robust security standards.
MSPs: Capitalizing on new opportunities with CaaS
For managed security providers (MSPs), this presents an opportunity. Where there is an enterprise problem, there can and should always be a corresponding solution.
MSPs should not overlook the market potential driven by the increasing demand for compliance. Security best practices are no longer confined to highly regulated sectors such as pharmaceuticals, banking or finance. Today, any company operating in a global market may need to comply with various regulations, with larger companies and insurers becoming more demanding of compliance and accreditation from their partners, suppliers and customers.
The statistics speak for themselves. The global enterprise governance, risk and compliance market is projected to grow 14% annually between 2023 and 2028, reaching a whopping $75 billion annually by the end of this period.
This expanding need for compliance across industries creates a fertile ground for MSPs to offer their expertise and solutions, addressing a broad spectrum of compliance challenges. But how exactly can MSPs position themselves in the best possible way to secure a significant portion of this growing market?
Enter compliance as a service (CaaS) – a solution that MSPs should be looking to offer enterprise customers seeking external support in meeting their cybersecurity compliance requirements.
It’s a win-win solution. By using external experts to manage and align with required regulations, organizations can reduce their internal workloads, minimize costs and simplify the overall compliance process. Meanwhile, for MSPs, CaaS will not only drive revenue directly, but also help to unlock value-add opportunities. Assisting companies in addressing compliance challenges may uncover operational deficiencies that could drive further opportunities, such as the deliverance of audits or key security solutions.
Five steps to capitalize on CaaS opportunities
While CaaS is still in its relative infancy, the market is forecast to grow 17% between 2024 and 2032. To capitalize on the opportunities presented by this rapid growth, it’s crucial that MSPs establish and refine their offerings sooner rather than later.
But what exactly should such an offering look like in order to capture market share and truly drive value for customers? Here, we consider five aspects to prioritize.
Deliver ongoing value
CaaS should be more than a one-time checkbox exercise. It should underscore the importance of robust security practices, instilling a culture and understanding of cybersecurity as a top business priority – both at boardroom level and throughout the entire employee base.
Focus on education and awareness
To achieve this understanding, it’s essential that any CaaS process begins with education, training and awareness. Communicate the significance and impact of CaaS and cyber resilience in clear terms, encouraging businesses to allocate time for all employees to understand and prioritize security and compliance.
Make complex requirements understandable
Here, keeping things simple can pay dividends. While compliance frameworks can seem highly technical, they don’t have to be communicated in such a way. It’s worth remembering that many audiences will not be technically savvy, so breaking down complex concepts and technical language into understandable, business-focused discussions will go a long way in improving recognition of the importance of best practices.
Facilitate interactive learning
One way of achieving this might be in transforming the laborious process of reading through documents and guidelines into actionable, engaging formats. For instance, conducting boardroom exercises where companies outline step by step exactly how they would respond to a cyber attack may help to highlight the security gaps in their own specific plans and operations, making any potential issues more tangible and comprehensible.
Drive real-world relevance
It’s also important to apply technical compliance guidelines to relatable scenarios. Ask relevant questions: How will your team access disaster recovery plans during an attack? How will you manage teams to ensure they’re not overworked, and ensure that staff are paid? These considerations can bridge the gap between theory and practice, enabling businesses to grasp the essential steps needed for an effective response and recovery.
A tailored approach can pay dividends
Across industries and organizations – from regulatory frameworks like DORA to NIS2, spanning sectors like finance and healthcare – each enterprise faces unique compliance challenges and operational obstacles that will require tailored solutions.
By taking the time to educate enterprises on their specific risks, vulnerabilities and paths to compliance, MSPs can position themselves strategically in the growing CaaS market, building strong client relationships from the outset.
Indeed, closely aligning client needs and regulatory requirements will enable MSPs to establish themselves as trusted advisors in the cybersecurity and compliance space, in turn enabling them to capitalize on the growing opportunities that CaaS presents.
