Challenges MSPs Face In Complying with Regulations

Navigating the complex web of regulations can be daunting for Managed Service Providers (MSPs). Many MSPs cannot remain compliant without putting aside resources and building expertise to adequately comply with all applicable statutes.

Tight budgets and staffing constraints compound this structural disadvantage, making it even more difficult to maintain proper regulatory compliance. To comply with existing regulations and remain up-to-date on any new ones, MSPs need to invest in the right resources and proactively plan for contingencies.

To stay compliant, consider the following framework:

PLAN: Develop a plan to understand and comply with applicable regulations.

PROACTIVE: Stay current with regulations and be prepared to handle unexpected changes quickly.

RESPOND: Monitor compliance performance on an ongoing basis.

RESOLVE: Update existing processes when new regulations come into effect.

PLAN: The Importance Of Having A Clear Understanding Of Your Obligations
Develop and document a comprehensive plan to understand and comply with applicable regulations. This includes researching relevant rules, staying informed about changes in the regulatory environment, and reviewing existing processes for compliance. Creating a plan is not a one-time effort; it should be an ongoing process. This will ensure that your MSP remains compliant with new regulations and is prepared to quickly address any unexpected changes.

Consider the following:

• Identify which regulations apply to your MSP or your customers.
• Create a timeline for when to review and update compliance procedures.
• Document processes and procedures to ensure that all regulatory requirements are met.
• Monitor compliance performance on an ongoing basis.
• Develop a contingency plan in case of unexpected changes in regulations.
• Train employees on regulatory requirements and compliance processes.
• Invest in the right resources to maintain compliance.
• Keep up to date on changes in the regulatory environment.

PROACTIVE: Staying Current With Regulations

Staying informed about new regulations is the best way to ensure that your MSP remains compliant. The importance of staying up-to-date on new rules cannot be overstated; without the right intelligence on current and upcoming regulations, MSPs are at risk of non-compliance.

To proactively stay in compliance, consider the following steps:

• Monitor Regulatory Changes: Keep track of any relevant changes in the regulatory environment by subscribing to notifications from governing bodies or industry publications.

• Develop Compliance Policies: Create policy documents that clearly state your organization’s compliance requirements and responsibilities.

• Train Employees: Ensure that all employees understand their roles and responsibilities in maintaining compliance. Update training materials as needed for any changes in regulations or processes.

• Stay Informed about GDPR: Be aware of the General Data Protection Regulation (GDPR) and other international regulations that may affect your service offerings.

• Review Processes Regularly: Review existing processes regularly to ensure they meet the latest data protection, privacy, and security requirements.

• Invest in Resources: Invest in tools and services to aid with compliance management and monitoring.

• Maintain Documentation: Document any changes to processes or procedures when necessary. This will help keep your MSP organized and prepared for any audits or disputes related to non-compliance issues.

Consider the following best practices when staying current with regulations:

• Sign up for email alerts from regulatory bodies
• Join industry associations to access resources and networking
• Follow industry news and updates
• Attend webinars and conferences
• Subscribe to industry publications
• Leverage external consultants to stay informed

RESPOND: Monitor compliance performance on an ongoing basis
While implementing data security best practices, there is always the potential for human error or misunderstanding of the regulations. Monitoring compliance performance on an ongoing basis is critical for MSPs to ensure that all applicable regulations are being followed.

Monitoring should include regular self-assessments and third-party audits. This will help identify any weaknesses in compliance and allow the MSP to fix any issues before they become larger problems.

The following steps can help MSPs monitor their compliance performance:

• Establish a system to track compliance performance
• Set up regular self-assessments to identify potential issues
• Conduct periodic third-party audits to validate performance
• Review processes and procedures to identify any gaps
• Invest in tools and services to strengthen compliance
• Establish a process for reporting non-compliance issues

RESOLVE: Update Existing Processes When New Regulations Come Into Effect
When new regulations are enacted, MSPs must update their existing processes to ensure compliance. Depending on the regulation, this may involve changes to policies, procedures, or technical infrastructure.

It is important to have a plan in place for responding to new regulations. This plan should include steps for researching the new requirements, updating processes, and communicating changes to affected staff.

A good strategy is to use a knowledgebase tool like SherpaDesk's to keep track of all the current regulations that, for example, affect the different types of data security tools that you manage for your MSP customers. You can organize your MSP's compliance knowledgebase articles by Data Security tools or by customer. This way, your team will always have a simple way to keep track of current regulations.