The Role of Dealer Principals in Ensuring Cybersecurity Excellence

In the wake of recent cyber-attacks, cybersecurity should be a paramount concern for all dealer principals. The potential financial, reputational, and operational business losses make it imperative for dealer executives to adopt proactive and comprehensive cybersecurity measures.

Understanding the Difference: Compliance vs. Cybersecurity

Compliance and security often go hand-in-hand in the realm of cyber threat protection. Both aim to reduce risk, yet they are not mutually inclusive. Not everything required for compliance will enhance security, and not all security measures ensure compliance. It is crucial to understand how these two concepts interact and how they affect each other to stay ahead of threats.

What’s the Difference?

Compliance refers to adhering to rules and regulations set forth by government, industry standards, or individual companies. These regulations aim to lower risk but have a broader scope than an organization’s internal security measures. They focus on reducing legal, financial, and physical risks for organizations, employees, and customers. Compliance also requires proof to ensure conformity to these rules.

Security, on the other hand, is focused on preventing, detecting, and remediating cybersecurity incidents, such as cyber-attacks and data breaches. It involves protecting data in motion and at rest, at endpoints, and wherever it is stored, while maintaining measures to monitor activity and detect potential incidents. The subtle yet critical difference is that security aims to protect the organization’s assets, whereas compliance ensures adherence to policies.

How Compliance and Security Interact

While many aspects between compliance and security overlap, conflicts can arise. There are instances where compliance and security are at odds. Organizations may lack the resources to appoint dedicated compliance police, and proving compliance can distract from broader more impactful cybersecurity efforts. Compliance regulations, such as privacy rights, can complicate monitoring suspicious behavior. Additionally, documenting compliance can be laborious, especially if done manually.

Governmental regulations like California’s CCPA or the EU’s GDPR are designed to protect against cyber threats and privacy violations. Compliance with these regulations is often required for conducting business in specific regions. As regulations vary globally, organizations must stay current with multiple regulatory entities to maintain operations and reach potential customers.

The Key Is Striking the Perfect Balance

Despite the challenges, organizations can find a balance between compliance and security. Implementing measures for compliance can also improve security posture. For example, increased focus on visibility helps both security and compliance by making documentation easier and saving time for compliance teams.

Regulatory measures, such as firewalls, incident reporting, and solutions to mitigate ransomware and phishing, lower risk and improve security. Thus, by adhering to compliance regulations, organizations also enhance their security.