How Compliant is Your Michigan Business? 4 Questions You Need to Ask

Jan 14, 2025

IT Compliance with Michigan Laws

No matter which industry you serve, odds are your company needs IT compliance that meets the latest regulatory standards. As companies continue integrating technology into their business operations, more legislation will be created to dictate how companies manage the personal and financial data of its users and customers. IT compliance is a must.

Why Compliance Is Important

While we know it’s a hassle, letting IT compliance challenges stop you from staying current is a bad idea. Failing to comply with industry regulations results in negative consequences for your business. Companies and high-level executives may face fines of thousands or millions of dollars and even prison time, depending on the severity of the violation. Your business could experience downtime and suffer damage to its reputation. It could even be forced to close. According to Inc., within six months of a data breach, six out of 10 small businesses are forced to shutter.

How These Policies Affect Your Business

Below are some examples of industry regulations which may affect your business. Not every market will be affected by all of these regulations, but it’s critical to know which ones apply to you. Here are four compliance questions to ask yourself:

1. Do You Have European Customers?

In May 2018, the European Union enacted guidelines on how personal information from individuals living in the EU is collected and processed. This became known as the General Data Protection Regulation (GDPR). This regulation affects not only websites based in the EU but also any website that offers services to EU residents.

Under these rules, websites must alert visitors that they will collect their data and give them the option to consent or “opt-in” to allow data collection.

2. Does Your Website Allow Credit Card Payments?

If your website conducts credit card transactions, you must comply with the Payment Card Industry Data Security Standard (PCI DSS). The PCI DSS requires all companies that accept, transmit, process, or store credit card holder data during a transaction to maintain a secure digital environment.

Each major credit card company sets its own levels and requirements based on the number of credit card transactions a business processes annually. For example, a Level Four merchant with Visa processes fewer than 20,000 Visa transactions a year. This level requires companies to annually complete a Self-Assessment Questionnaire (SAQ), submit an Attestation of Compliance (AOC) Form, and conduct a quarterly network scan by an Approved Scan Vendor (ASV) when needed.

Patient confidentiality is one of the pillars of the health care industry, which is why so many compliance regulations exist. The Health Insurance Portability and Accountability Act (HIPAA) sets compliance standards for companies that handle protected health information (PHI).

Anyone with access to patient records, who provides or supports treatment, collects payments, or operates within the health care space must follow HIPAA compliance to keep personal patient data safe.

3. Do You Handle Healthcare Records?

Patient confidentiality is one of the pillars of the health care industry, which is why so many compliance regulations exist. The Health Insurance Portability and Accountability Act (HIPAA) sets compliance standards for companies that handle protected health information (PHI).

Anyone with access to patient records, who provides or supports treatment, collects payments, or operates within the health care space must follow HIPAA compliance to keep personal patient data safe.

4. Does Your Company Store Financial Records?

Are your company’s financial records up to date? To stop companies from reporting false or inaccurate financial information, the U.S. government passed legislation known as the Sarbanes-Oxley Act (SOX) in 2002. This regulation protects shareholders and the general public from accounting errors and corrupt financial business practices by public companies.

This regulation affects how financial and IT departments maintain, store and archive their corporate records. It also sets dates for how long companies need to archive this data.

How to Simplify Compliance

If you’re a small- or medium-sized business, you might lack the resources to focus on maintaining data compliance and meeting industry regulations. Precision Computer Solutions, Inc. steps in to fill that gap. We audit and assess your company’s compliance with industry regulations. Then, we develop and implement policies and procedures to ensure your company stays IT-compliant moving forward.

Don’t navigate this complex topic alone — contact us today to kickstart your compliance efforts.