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Kharmela Mindanao

By: Kharmela Mindanao on September 3rd, 2024

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What is NIST 800-171? (& What Does it Mean for Businesses?)

Compliance

Cybersecurity is a major concern for businesses across all industries. To address this, the National Institute of Standards and Technology (NIST) introduced NIST 800-171, a comprehensive framework designed to safeguard sensitive information and enhance organizations' overall cybersecurity posture.  

NIST 800-171 is particularly crucial for businesses that work with government agencies, as many regulations refer to it for compliance guidelines. However, it's also seen as a valuable resource for organizations in other sectors, given its comprehensive and adaptable nature.

If you’re reading this article, chances are your organization is one of the many that must comply with NIST 800-171 and are looking for references to guide you. 

You’ve found the right place to begin your journey.

Intelligent Technical Solutions (ITS) adheres to the highest cybersecurity standards, and we also want our clients to do so. That is why we help them navigate the complexities of different compliance standards, starting with creating helpful guides such as this article.

Sean Harris, ITS’ VP for Cybersecurity, will walk us through what every business should know about NIST 800-171, including: 

After reading, you should better understand NIST 800-171 and start taking the first step to compliance. 

A businessman utilizes biometric security, demonstrating NIST 800-171 compliance in data protection

What is NIST 800-171?

NIST 800-171 is a security framework published by the National Institute of Standards and Technology designed to help companies safeguard Controlled Unclassified Information (CUI). 

CUI refers to unclassified information that requires safeguarding or dissemination controls to protect it from unauthorized access or disclosure, such as the following: 

  • Intellectual property 
  • Trade secrets 
  • Financial information 
  • Personal information

NIST 800-171 standardizes cybersecurity requirements for federal contractors and subcontractors based on a set of 110 security controls divided into 14 families. These controls cover various aspects of cybersecurity, such as access control, incident response, and security awareness and training. 

Because of its function, different compliance standards—such as CMMC 2.0—use it as the basis for their guidelines.

Who needs to adhere to NIST 800-171? 

“NIST 800-171 compliance is mandatory for any organization or business that handles CUI on behalf of the federal government,” Harris says.  

This includes: 

  • Federal contractors and subcontractors;   
  • State and local governments;  
  • Healthcare providers and insurers that handle medical information for federal programs such as Medicare or Medicaid;  
  • Colleges and universities that handle research data or other sensitive information on behalf of federal agencies, such as the National Science Foundation; and 
  • Banks and other financial institutions that handle financial data for federal agencies, such as the Department of Treasury.  

Some states have also adopted guidelines for their own cybersecurity regulations. 

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What happens when a business fails to comply with NIST 800-171? 

There can be legal implications for businesses that fail to comply with NIST 800-171, and the consequences can vary depending on the severity and frequency of the violation. Harris mentioned three of the most common repercussions: 

 1. Loss of contracts  

Failure to comply with NIST 800-171 can result in the loss of current and future contracts with the federal government or other organizations that require compliance with the guidelines. 

Consequently, it will impact your financial performance and aggravate your ability to secure new clients and business opportunities. 

2. Legal action

Non-compliance with NIST 800-171 can lead to legal action, including fines, penalties, and lawsuits. The federal government and other organizations may pursue legal action to recover damages resulting from a data breach or other security incident caused by the organization's failure to comply with the guidelines.  

3. Damage to reputation

A data breach or other security incident resulting from non-compliance with NIST 800-171 can extend beyond immediate financial losses. When it happens, it can damage your organization's reputation and erode customer trust. As such, it can lead to a long-term decline in customer retention, as clients may seek more secure alternatives. 

As word of the breach spreads, potential new customers may also be deterred from doing business with the organization, resulting in lost revenue streams and decreased market share.

Business owners consult an MSSP on NIST 800-171 compliance

How can you prepare your business for NIST 800-171 compliance?

Once you’ve gathered all the necessary information regarding NIST compliance, start planning as soon as possible. Here are some steps that you can take to prepare for NIST 800-171 compliance: 

1. Determine if you handle CUI.

The first step in preparing for NIST 800-171 compliance is to determine whether your business handles CUI. If it doesn’t, you should check other regulations that cover your industry.

But if you do, proceed to the next step. 

2. Conduct a risk assessment.

A risk assessment will help you prioritize your efforts and focus on implementing the most critical security controls. If you’re unsure how to do this yourself, ITS can conduct a risk assessment for you. 

3. Identify the necessary security controls.

Based on the results of your risk assessment, you should identify the necessary security controls to implement to protect CUI. 

NIST 800-171 provides a list of 110 security controls that organizations can use as a starting point. These controls are organized into 14 categories, including access control, security awareness and training, incident response, and system and information integrity. 

4. Implement the security controls.

This may involve updating policies and procedures, installing new hardware or software, or modifying existing systems to meet the required security standards.  

5. Train employees.

In addition to implementing security controls, it is essential to train employees in the proper handling and protection of CUI. Ensure that everyone in the organization is aware of the new controls by including training on cybersecurity best practices, data handling procedures, and incident response protocols. 

RELATED: 6 Components of an Effective Cybersecurity Awareness Training Program 

6. Monitor and maintain compliance.

Once you have implemented the necessary security controls and trained employees, it is important to monitor and maintain compliance with NIST 800-171. This includes conducting regular assessments, identifying and addressing vulnerabilities and risks, and updating policies and procedures as necessary.  

Business professionals discuss NIST 800-171 compliance strategies during a meeting

Ready to meet your NIST 800-171 compliance goals?

Essentially, any company handling CUI must comply with the guidelines. However, complying with NIST 800-171 is more than just ticking off a checklist of security controls; it requires a comprehensive cybersecurity approach involving risk management, continuous monitoring, and ongoing improvement.

But the biggest challenge is understanding the guidelines and how they apply to their situation. Since the procedures are highly technical, it can be overwhelming for companies without a dedicated IT department.

Fortunately, there are ways for businesses to minimize the cost and complexity of compliance. One way is to work with a Managed Security Services Provider (MSSP) such as ITS.  

By partnering with ITS, we can provide ongoing monitoring and management of cybersecurity, free up internal resources, and walk you through compliance with NIST 800-171. Schedule a meeting with us to start your journey. 

You may also check out these references for more information: 

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