How Can SMEs Tackle the Challenges of Developing Information Security Policies?

Information Security Policies (ISPs) serve as a guideline for how your organization handles information security. For Small and Medium-sized Enterprises (SMEs), creating ISPs can often be a daunting task, but it can be a necessary one. Unlike large enterprises that have dedicated teams of cyber security professionals, SMEs often operate with limited resources. These challenges can make the development of ISPs more complicated, but with the right approach, SMEs can create policies that fit their unique needs. To learn more about why ISPs are essential for SMEs read the blog, “Why SMEs Need an Information Security Policy.”

In this blog, we’ll address the common problems SMEs face when developing ISPs and practical solutions that can help overcome them.

Top 4 Challenges SMEs Face When Developing Information Security Policies (ISPs)

1. Lack of Clarity on Legal and Regulatory Requirements

Many SMEs find it difficult to understand and follow legal obligations around data protection and cyber security laws. Regulations like the Digital Personal Data Protection Act (DPDP), General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability Act (HIPAA), and California Consumer Privacy Act (CCPA) have specific requirements that businesses must follow. However, it can be hard for SMEs to figure out which laws apply to them and how to include them in their ISPs. Failing to address these regulations properly in their policies can lead to legal penalties and reputational damage due to non-compliance.

Solution: To address this, SMEs should start by learning about the specific laws and regulations that apply to their data, industry, and location. To meet legal and regulatory requirements, SMEs should use trusted resources like government websites (e.g., ICO for GDPR, HHS for HIPAA, and MeitY for India’s DPDP) for clear guidance to find out which regulation is applicable to them.
For example, A small dental clinic in the US needs to comply with HIPAA to protect patient data. They can include HIPAA requirements in their Information Security Policy (ISP) by setting rules for protecting patient data. For example, the policy could state that only authorized staff can access patient records, all patient data must be encrypted, and employees must be trained on HIPAA rules. If there’s a data breach, the clinic must inform patients and report it to the authorities on time. This helps the clinic stay compliant with HIPAA and protect patient information.

2. Lack of Dedicated Security Expertise

Many SMEs do not have in-house security professionals or a dedicated cyber security team. As a result, developing ISPs can feel like an overwhelming task, especially if leadership lacks a deep understanding of information security. The absence of security expertise often leads to policies that are either too generic or not well-informed about the latest threats and best practices.

Solution: SMEs can develop ISPs without the need for external consultants by leveraging free and low-cost resources available from government and industry bodies.

Guidelines and templates from frameworks like the NIST Cyber Security Framework provide a structured approach to help organizations manage and reduce cyber security risks. The NIST framework is developed by the US National Institute of Standards and Technology.

Similarly, standards like ISO 27001 provide guidelines to help businesses of all sizes and industries create, implement, and improve systems to manage and protect their information securely.

Both offer practical structures, security best practices, and compliance checklists that can be tailored for small businesses. SMEs can stay informed about the latest threats and best practices by subscribing to industry-relevant newsletters.

3. Overcomplicating the Policy with Technical Jargon

When SMEs attempt to develop ISPs, they might be tempted to include overly technical language or jargon that is difficult for non-technical employees to understand. This can lead to confusion and reluctance among employees who may struggle to understand complex security terms, resulting in poor compliance with the policy.

Solution: ISPs should be written in plain language that is clear and accessible to all employees, not just IT professionals. Policies should be concise, with technical terms explained in simple terms, and should focus on actionable steps that employees can easily follow.
For example, An SME in healthcare creates an Information Security Policy that includes terms like “two-factor authentication” and “multi-layered security protocols,” which are not easily understood by non-technical staff, such as receptionists and nurses. As a result, employees may overlook key security actions, such as verifying patient identities before providing access to records or locking their computers when away from their desks. This could put sensitive patient data at risk.
A clearer approach would be to include something like this in the ISP “When logging into the system, enter your password and confirm your identity by either receiving a code on your phone or using a fingerprint scan. This extra step ensures that patient information remains secure.”

4. Lack of Clarity on What to Include in ISPs

A common challenge when developing Information Security Policies (ISPs) is not being clear about what should be included in the policy. Without a clear understanding of which assets, systems, processes, or individuals need to be addressed, it can result in incomplete policies that leave critical areas vulnerable. This confusion can lead to some parts of the business being unprotected or not adequately monitored.

Solution: To address this, SMEs should prioritize identifying and specifying which assets (e.g., customer data, internal communication, cloud services) and systems (e.g., network infrastructure, software, employee devices) require protection. Additionally, it’s important to clearly outline the roles and responsibilities of all employees, contractors, and third-party vendors who access or handle company data. Ensuring these elements are defined helps SMEs safeguard all critical areas and make employees aware of their security responsibilities.

Turning Challenges into Opportunities for Growth

Developing ISPs is a critical step in safeguarding your business, especially for SMEs facing unique challenges like limited resources and expertise. While the process may seem daunting, with the right approach, it presents an opportunity to build a stronger, more cyber resilient organization.

Creating ISPs can significantly benefit SMEs by guiding the implementation of effective cyber security controls and ensuring prompt and efficient responses to security incidents. Additionally, it helps businesses meet compliance requirements, increases accountability among users and stakeholders, and helps protect the organization’s reputation. Moreover, a well-designed ISP can streamline operations, improve efficiency, and reduce the risk of breaches or downtime, ultimately contributing to long-term business sustainability.