The Hidden Cost of WISP Non-Compliance: Beyond the Fines
Maybe you think of your Written Information Security Plan (WISP) as just another compliance checkbox to avoid penalties – but you are missing the bigger picture. Sure, the IRS fines for WISP violations are expensive and can be up to tens of thousands of dollars, but here is the deeper cost of non-compliance.
Financial exposure
A breach can lead to Fraudulent transactions, Loss of revenue from disruption of regular business, legal costs and long investigations, as well as increased insurance premiums (or denial of coverage).
Damaged reputation
One of the most devastating impacts of non-compliance is the break in trust between clients and the business. Even if a company recovers financially, the reputational damage can make it difficult to keep your current client base and even harder to attract clients.
Disruption of business as usual
When a breach occurs, everything stops. A breach can cause the day-to-day business to shut down while you pin-point the vulnerabilities. This disruption means that employees may lose access to critical systems or that you have to pause services which makes for unhappy customers. In some cases, companies may even be forced to temporarily suspend operations until security gaps are resolved.
Legal issues
A lack of an IRS WISP can trigger audits, enforcement actions, and lawsuits. When you don’t have your ducks in a row with the correct IRS boxes checked, your firm is in the IRS spotlight and can be scrutinized more closely.
Employees become a risk
Employees unknowingly exposing sensitive information is one of the top causes of data breaches. Without a clear plan and training, employees are more likely to make mistakes that could have been prevented.
Protect your tax firm against these hidden costs with our automated WISP compliance tool.
A WISP not only ensures compliance but also protects your business from operational, financial, and reputational risks. Tools like WISP Builder streamline the process, making it easy to create, update, and enforce your security plan.
WISP non-compliance costs shouldn’t be ignored
The cost of ignoring WISP compliance is far greater than the fines alone. Breaches can wreak havoc on your firm’s finances, customer satisfaction, and day to day operations. Creating a solid WISP helps you to protect your business, your employees, and your clients.
Use WISP Assist to create your WISP for you or have WISP Review ensure you’ve done it correctly. Train employees regularly, and use a platform like WISP Builder to simplify compliance and minimize risk.
