2024 has shown that there is hope on the horizon for more effective compliance strategies<\/a>. Companies are learning how to coordinate across departments, utilize purpose-built technologies, and enlist the help of AI for compliance. <\/p>\n\n\n\n Knowing how other organizations handle third-party risk management can help you make your cloud environment more secure and up to the standards set by regulators<\/a>. The following trends and statistics were put together so you can get a better picture of where your compliance program stands with third-party risks.<\/p>\n\n\n\n Centralizing compliance is one of the toughest challenges organizations faced in 2024. Emerging cyberthreats, new regulations<\/a>, lack of resources or trained personnel, and multi-cloud frameworks were familiar foes to many organizations.<\/p>\n\n\n\n With cloud budgets<\/a> comprising almost one-third of IT spending in 2024, several trends came along with the continued migration to cloud services.<\/p>\n\n\n\n Overall, data breaches continued to be a top concern for compliance officers. In a recent survey by Prevalent<\/a>, 74% of professionals said a cybersecurity incident due to insufficient vendor security was their biggest fear. Data breaches are incredibly costly, including down time, legal fees, regulatory fines, and the potential loss of customers. But the good news is that there was a slight improvement in the rate of incidents<\/a> \u2014 decreasing from 30% of compliance issues in 2023, to 28% in 2024.<\/p>\n\n\n\n However, while data breach numbers improved overall on industry and organizational levels, the rate of third-party data breaches saw a significant increase \u2014 shooting up 49% year over year from 2023 to 2024.<\/p>\n\n\n\n As it is with just about everything else, artificial intelligence (AI) is a hot topic in compliance in 2024. New DOJ regulations<\/a> requiring companies to assess and manage risks related to AI made the technology a focal point in compliance faster than many organizations anticipated. <\/p>\n\n\n\n While many are concerned about the risks of AI, there are also benefits to using AI to streamline compliance processes like monitoring, fraud detection, and predictive analytics. At this point, most companies are still behind the curve with AI and there are concerns about security and integration<\/a> with existing employees, assets<\/a>, and systems<\/a>. <\/p>\n\n\n\n Compliance audits<\/a> are taking place more frequently as new governmental policies like the EU\u2019s General Data Protection Regulation<\/a> (GDPR) and the California Consumer Privacy Act (CCPA) are put in place.<\/p>\n\n\n\n Here are some key stats that highlight these IT compliance trends in 2024.<\/p>\n\n\n\n This year, regulators tightened controls on IT compliance, supply chain security, AI, and data management. <\/p>\n\n\n\n In the next year, these trends are expected to evolve.<\/p>\n\n\n\n In 2024, many organizations were on the lookout<\/a> for new solutions, after realizing their established compliance processes were incapable of handling evolving third-party risks and regulations. <\/p>\n\n\n\n The transition from manual tools like spreadsheets and nonintegrated, single-point strategies is starting, with 64% of companies turning to purpose-built technology and integrated platforms for compliance management. The use of AI for compliance functions rose 31% between 2023 and 2024 and is expected to continue to climb into next year.<\/p>\n\n\n\n Evolving strategies to manage cybersecurity and data breaches also made up some of the top technology trends in compliance this year.<\/p>\n\n\n\n Regulations will only get more complex as work environments evolve, AI systems become more sophisticated, and cybercriminals uncover new vulnerabilities. Over the next three years, 62% of companies plan to increase focus on cybersecurity training, 59% on data privacy, and 39% on AI \u2014 and each bring their own set of compliance challenges.<\/p>\n\n\n\n As data privacy<\/a> becomes a greater concern and cybercriminals find new weaknesses to exploit, compliance programs will need to establish systems that continually monitor and address cybersecurity and privacy risks. Automated tools will need to be scalable and integrated across departments to ensure compliance demands are met in real time.<\/p>\n\n\n\n Organizations will need to find adaptable solutions as different data and privacy laws are enacted across different regions and localities. Currently, the EU\u2019s GDPR, the California Consumer Privacy Rights Act, and China\u2019s Perspnal Information Protection Law (PIPL) set the standards for data and privacy, but there are no regulations that apply globally. This could lead to variations in auditing, and a higher volume of audits from a multitude of agencies, resulting in the need for the development of automated auditing systems to keep up with the demand.<\/p>\n\n\n\n Governing bodies will likely author new legislation for cloud-based environments which may involve data residency and sovereignty requirements. Data security incidents and third-party breaches will need to be reported in quicker and more streamlined ways.<\/p>\n\n\n\n With governments taking a closer look at environmental, social, and governance issues, ESG compliance will need to be integrated into existing risk analysis and reporting frameworks. <\/p>\n\n\n\n As AI plays a bigger role in compliance, so will scrutiny from regulators. Safeguards could be placed on AI systems to address issues related to bias, accountability, and decision-making processes.<\/p>\n\n\n\n The cost of compliance differs across industries, with more regulated areas like finance and healthcare facing steeper expenses. The need for properly staffed compliance teams will also increase along with the adoption of third-party vendors and new regulations. On average, a mid-sized organization\u2019s IT compliance costs can range from $100,000 to $1 million on a yearly basis<\/a> and soars a lot higher if faced with fines or lawsuits over noncompliance.<\/p>\n\n\n\n \n The IT Manager\u2019s Guide to Data Compliance Hygiene <\/p>\n \n How to ace your audit <\/p>\n <\/div>\n With the cost of data breaches and noncompliance rising, this is a time when a lot of organizations are reassessing how they handle third-party risks. While 86% of respondents in Prevalent\u2019s Risk Management Study said they had a third-party risk management system in place, 33% said their current system was inadequate when it came to addressing third-party compliance. <\/p>\n\n\n\n As third-party and supply chain risks draw more focus, several trends have emerged to combat them. Companies are turning to security ratings services that provide a more detailed picture of risks involved for each vendor. The use of purpose-built and integrated technology is being used to provide a better assessment of third-party risks in real time. Cross-departmental integration and employee training is helping to identify risks and vulnerabilities faster. Contractual requirements and SOC 2 reports<\/a> are being used to ensure third-parties are compliant with data and privacy laws<\/a> and have incident response plans in place.<\/p>\n\n\n\n Cloud environments have a unique set of challenges that organizations need to adapt to. Data residency requirements are changing across the globe with the advent of new regional regulations like the GDPR. Organizations are facing more stringent rules around encryption, and must be sure data is encrypted during transfers and in storage. <\/p>\n\n\n\n Visibility and monitoring are difficult to track manually with third parties, leading more companies to seek automated solutions.<\/p>\n\n\n\n Cloud misconfigurations are one of the leading causes of data breaches. Organizations are turning to AI systems to detect vulnerabilities more efficiently, but patching<\/a> problems is still slow for many organizations.<\/p>\n\n\n\n Though IT compliance gets more complex every day, JumpCloud<\/a> can help simplify compliance for your organization. Learn how our open directory platform<\/a> expands your capabilities to monitor compliance data and gives you the tools to prepare for an audit. <\/p>\n\n\n\n With JumpCloud you gain visibility<\/a> and complete control over your IT environment. You\u2019ll be able to manage access privileges<\/a> and prevent unmanaged devices from accessing your network and services.<\/p>\n\n\n\nEditor\u2019s Picks: IT Compliance Statistics<\/h2>\n\n\n\n
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2024 Compliance Trends<\/h2>\n\n\n\n
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Anticipated Regulatory Changes <\/h3>\n\n\n\n
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Technology Trends in Compliance<\/h3>\n\n\n\n
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Predictions for Future Compliance Challenges<\/h3>\n\n\n\n
Compliance Costs<\/h2>\n\n\n\n
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\n <\/div>\n Vendor Risk Management<\/h2>\n\n\n\n
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Cloud Security and Compliance<\/h2>\n\n\n\n
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Achieve and Maintain Compliance with JumpCloud<\/h2>\n\n\n\n