With shifts in regulations and new policies from the Biden administration continuing to roll out, there’s a new wave of funding for childcare providers that is quickly approaching. That shift represents a great opportunity for providers to grow and expand the services they provide. But, even as those expected increases arrive and help to transform operations, there are some challenges and considerations that every childcare provider must be ready to address—particularly when it comes to data privacy and security.
Security, data privacy, and risk management are not topics that tend to get the lion’s share of attention among subsidized childcare providers and across the broader industry. As new technologies and tools bring change to nearly every workplace, those agencies in subsidized childcare will need to take a closer look at their preexisting best practices, policies, and standards that have traditionally guided the handling of security and data integrity.
Cybersecurity Awareness Month: Tips From an Ethical Hacker to Secure Our World
It’s a task that’s easier said than done, but one that can mean the difference between success and failure in the long term—and compliance with stringent data recording requirements. Here are a few of the most important steps that every subsidized childcare provider should take to assess IT needs and ensure the most sensitive data remains secure.
Identify Security Risks
When it comes to managing childcare programs, and the subsidies that make them possible, there’s no room for error. In 2022, the number of documented supply chain attacks that involved third-party components skyrocketed by over 600%, according to a report.
Childcare providers take in vast amounts of sensitive data ranging from attendance to subsidy payment information to family billing details. Any lapse in security could spell disaster, not just for the provider but for the families and children they serve as well. And, with a steady flow of funding on the horizon, providers will need to have the tools in place to maintain total control over the subsidies coming into their agency—a task that’s easier said than done in an industry where spreadsheets and paper are an all-too-common sight.
Modernizing internal systems is not enough– providers must ensure any solutions they do bring in are adding layers of security to the equation, too.
Operating in the childcare space can be hectic, particularly as funding increases are helping to fuel an uptick in demands on organizations. Oftentimes providers simply don’t have the time to follow, or are simply unaware of, the steps that need to be taken to identify potential security risks within their organization.
Assess Vendors with an Eye Toward Security
For a subsidized childcare provider, cybersecurity technology is not a luxury, it’s a necessity. Therefore, anytime there’s a discussion about choosing a technology vendor, the evaluation should start with security.
What sort of security features can they offer?
And, more importantly, what does their own security posture look like?
Have they experienced a hack or breach of their own?
All are considerations that should be front and center during the decision-making process.
Anytime a childcare organization entrusts its most sensitive data with a new vendor, it should understand where that data is going, especially if this is somewhere outside the U.S.
Being dependent on subsidies to keep programs up and running means that data needs to be accurate, and all funds are accounted for, at all times. Additionally, from an operations standpoint, as workloads increase, the potential for human error increases.
And similarly, those providers open themselves up to the risk of fraudulent activity that could end up going unnoticed. With the right partner and effective analytics tools, childcare providers can get a handle on internal data and put a stop to redundancies, suspicious activity, and unnecessary expenses that take valuable resources away from program budgets.
That same partner, bringing deep industry expertise, can provide critical assistance when it comes to managing compliance-related issues as well. Whether it’s adhering to HIPAA or other federal or state guidelines, a failed compliance audit could prove costly for providers. With a modernized data management infrastructure and a knowledgeable industry partner, childcare providers can feel confident their data management is up to the task.
Build Confidence in the Subsidy Process with Security and Data Integrity
Whether it’s at rest or on the move, the data that exists within childcare providers’ systems is too critical to go unprotected. As more of these organizations realize the benefits of cloud environments, data analytics, and other digital transformation approaches, it’s essential that security and data integrity stay top of mind. And while managing an organization-wide digital transformation, an uptick in funding, and evolving regulatory guidelines can add complication, finding the right technology partner can help keep sensitive data secure.
