Most companies don’t get blindsided by regulations, they get blindsided by what they didn’t know they were supposed to do.
For many businesses, even those partnered with capable MSPs, the uncomfortable truth is this: the biggest compliance risks often come from what’s overlooked, not what’s ignored.Compliance in 2025 is no longer about staying in the clear; it’s about staying in control especially when the rules keep changing, and not all of them are obvious.
Let’s talk about what’s really on the radar this year.
NYDFS Is Raising the Stakes
The New York Department of Financial Services (NYDFS) Cybersecurity Regulation (23 NYCRR 500) isn’t new, but its revised rules are. As of late 2023, covered entities are now held to stricter standards around risk assessments, privileged access controls, and incident response. For MSPs working with banks, insurers, or fintech firms, this means the days of “good enough” IT hygiene are over. Here’s the updated regulation text from DFS.
And NYDFS isn’t alone in tightening the reins.
HIPAA, GDPR… and the Expanding Universe of Data Privacy
Yes, healthcare organizations continue to navigate HIPAA regulations, and companies with European connections must comply with GDPR. However, new state laws like California’s CPRA, Colorado’s CPA, and Virginia’s VCDPA have introduced additional requirements for businesses handling personal data. These laws raise important questions for Managed Service Providers (MSPs), such as: Do you have a plan for data subject access requests? How quickly can you respond to a breach under state laws, not just federal ones?
These rules impact how your business functions, from infrastructure choices to daily workflows.
Compliance as a Competitive Advantage
Here’s a shift worth noting: Clients are no longer just asking about compliance. They’re evaluating vendors based on it.
They want to know:
- Are your backups encrypted and immutable?
- Who on your team can access sensitive data?
- Can you prove endpoint compliance during an audit?
And for businesses in regulated industries, the answer needs to be more than “we have tools.” It needs to be, “here’s our playbook.”
Automation Isn’t Optional Anymore
Tracking compliance manually doesn’t work well as businesses grow. That’s why many Managed Service Providers (MSPs) are turning to automated tools like policy management dashboards, real-time audit logs, and data classification systems. According to Gartner’s 2024 report on IT risk management, automation is one of the top cost-saving investments for mid-sized businesses facing mounting regulatory complexity.
The U.S. Department of Justice updated its compliance guidance in 2024 to address AI governance. Companies now need to evaluate how they use AI systems and identify any legal, ethical, or operational risks. For MSPs, this involves helping clients build secure, auditable systems that can explain their decision-making processes as AI becomes more integrated into operations.
McKinsey discusses a “superagency” model where humans and AI collaborate to make better decisions. This approach requires technology that is transparent, well-managed, and compliant from the beginning.
So, Where Do You Start?
If you’re working with,or are a growing business navigating financial, healthcare, or even retail regulations, your IT provider should be fluent in compliance. Not just the acronyms, but the actual impact.
- Can they build a defensible documentation trail?
- Will they flag risk before it turns into a fine?
- Do they keep up with evolving regulations so you don’t have to?
Because in 2025, being secure is expected. But being compliant and proactive? That’s where businesses build trust and resilience.
Need a compliance strategy that keeps up with regulation and technology?
Systech helps organizations build secure, auditable, and future-ready IT systems. Whether you’re navigating NYDFS, HIPAA, GDPR, or preparing for AI oversight, we’ll help you stay ahead of risk without slowing down your operations.
👉 Get in touch with our team to start a conversation.