There are many instances where your small-or-medium-sized business may need to comply with specific security and data protection. If you plan to or currently do business in a country with strict privacy laws (like the European Union); focus your efforts in the healthcare or finance markets; or deal with a client that has high confidentiality standards, you are likely required to bring your data security up to the mandated standards.
The purpose of regulations, in general, is to safeguard private and sensitive consumer data, as well as infrastructure and company data, from unauthorized individuals. Malicious activity and the unlicensed distribution of consumer or user data can be avoided with compliance measures in place. It is important that your business begins to understand these requirements to ensure the safety of your information, avoid penalties and comply with mandated regulations.