1. Inventory Current Security Practices
In theory, security assessments should be part of regular IT hygiene. For many startup founders, however, rapid business growth means prioritizing operations over cybersecurity practices. As a result, the first step in pre-IPO security is taking stock of current security efforts. These may include the use of security tools such as firewalls, anti-virus or anti-malware tools, encryption solutions, and other protective measures such as virtual private networks.
It’s also important to assess the human side of security. Founders should consider the number of full- and part-time staff they have working on security, along with any third-party managed security services or cloud providers.
READ MORE: How to scale the technology in your startup?
2. Identify Key Compliance Requirements
Startup companies must identify the specific requirements necessary to satisfy public scrutiny and meet government compliance standards. For example, standards such as the National Institute of Standards and Technology's guidelines and SOC 2 certifications, while not necessarily formally required, are nevertheless must-do’s for most businesses. Complying with such standards is good business practice, as companies that do so will make themselves more secure and go most of the way to meeting whatever regulatory requirements do exist for them.
NIST’s guidelines are designed to improve basic security practices, while SOC 2 focuses on protecting customer data. Another commonly applicable standard is the General Data Protection Regulation, which applies to any business that collects, uses or stores the data of individuals living in the European Union.
Startups may also be subject to more specific requirements. Companies that conduct financial transactions, for example, must comply with Payment Card Industry Data Security Standard, while those handling healthcare information in the United States must meet HIPAA standards.
RELATED: More on CDW’s security assessment and advisory services.
3. Invest in Security Assessment Expertise
Regular security assessments, performed by trusted third parties with experience in security evaluations and recommendations, are a necessary data-hygiene practice for any business. For a company preparing for an IPO, they are essential.
Using a trusted third party offers several benefits for startups. First, security expertise makes these providers more likely to pinpoint potential problems that internal staff may overlook because they’re familiar with network idiosyncrasies. Second, these providers can prepare comprehensive and auditable documentation that demonstrates standard compliance to both regulatory bodies and potential investors.
Finally, managed security providers often provide additional services to help ensure ongoing compliance, such as software and hardware recommendations, incident response evaluations and virtual CISO solutions.
If you’re on track for an IPO, we can help streamline your security assessment.
Multiple types of assessments are available. If you’ve done the groundwork, our technical teams can develop and deploy the assessment approach. If you need to start from scratch, we can help bolster your security posture and put you in touch with trusted assessment firms. And if you’re looking for ongoing assistance, we’ve got you covered with partners that offer Compliance as a Service solutions.
