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Driving compliance efficiency through enterprise cyber risk management

Bob Chaput (bob.chaput@clearwatercompliance.com) is Founder and Executive Chairman of Clearwater Compliance in Nashville, TN. He is also the author of the book, Stop The Cyber Bleeding: What Healthcare Executives and Board Members Must Know About Enterprise Cyber Risk Management (ECRM).

The business case for cyber risk management is clear. A cyber incident can lead to consequences that threaten the care and safety of patients. Cyber incidents can also result in financial, reputational, compliance, and legal consequences that threaten the viability of an organization. Healthcare organizations have begun to understand that cyber risk management is a critical part of overall enterprise risk management. That is why many healthcare organizations are establishing enterprise cyber risk management (ECRM) programs.

ECRM is not defined by a specific product or service. Instead, ECRM describes an approach to cyber risk management that engages the entire organization instead of leaving this task solely in the hands of the information technology (IT) department. It addresses cyber risk management from the enterprise perspective and involves taking comprehensive steps to manage cyber risk and, in so doing, protecting data privacy and security across the entire organization.

A less obvious, but equally important, benefit of ECRM is that it can help healthcare organizations manage compliance efficiently. Healthcare is one of the most regulated industries in the US, making compliance a challenging task. A study by the American Hospital Association found that hospitals must comply with 341 distinct regulatory requirements, 23% of which are directly related to privacy and security.[1] When you add in health systems and post-acute care providers, the number of regulatory requirements increases to 629. Privacy- and security-related regulatory requirements make up 13% of this broader scope of regulations.

It is likely that the American Hospital Association study, which was published in 2017, underrepresents the number of regulations related to data privacy and security in effect today. Additional regulations, such as the General Data Protection Regulation (GDPR), which became effective in May 2018, and the implementation of California Consumer Privacy Act in January 2020, have been adopted since the American Hospital Association study was completed. Research and advisory firm Gartner notes that since the GDPR went into effect, “More than 60 jurisdictions around the world have enacted or proposed postmodern privacy and data protection laws.”[2]

Managing the numerous—and growing—number of mandates related to privacy and security can be overwhelming for healthcare organizations. One way to simplify cybersecurity management compliance is to address commonalities across regulations. This is where a comprehensive ECRM program can help.

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