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What is a Regulated Industry—and Why Should You Care?

Brian Gallagher
General Manager, Koniag Cyber
min. read

This is part 1 of a 5-part series focused on what separates regulated industries in cybersecurity and how cyber continues to evolve for all commercial enterprises.

In today’s connected world, nearly every organization is subject to some form of cybersecurity scrutiny. For companies operating in or adjacent to regulated industries, the stakes are much higher. With the rapid advancement of AI and increasingly sophisticated capabilities of bad actors in cybersecurity, the pressure continues to mount on those tasked with keeping the enterprise, their data, and their people safe.

So, What Is a Regulated Industry?

A regulated industry is one that falls under formal oversight by government entities or standards bodies to ensure safety, security, compliance, or ethical operations. These regulations often mandate how organizations handle data, protect systems, and report incidents.

Common regulated sectors include:

  • Healthcare (HIPAA)
  • Finance and Insurance (GLBA, SOX)
  • Defense and Government Contracting (CMMC, FISMA, DFARS)
  • Energy and Critical Infrastructure (NERC CIP, FERC)
  • Pharmaceuticals and Life Sciences (FDA, CFR Part 11)

But here’s what you need to know: You do not have to be in these industries to be subject to their rules. And, their rules continue to evolve and are trending towards more stringent regulation, not less.

Why Should You Care—Even If You’re “Just a Vendor”?

If your company:

  • Handles sensitive data (like PII, PHI, or controlled unclassified information),
  • Supports a government contractor, or
  • Provides software, services, or systems used in critical environments…

…then you’re likely part of a regulated supply chain. Your cybersecurity posture matters just as much as the prime contractor’s.

Failing to meet the right standards (e.g., NIST 800-171, EO 14028 requirements, SBOM validation) can disqualify you from contracts, expose you to legal penalties, or worse, make you the weakest link in a national security or public trust chain.

The Growing Impact of Regulation

As mentioned, regulations are evolving quickly. What used to be best practices are now legal and contractual mandates that you must understand and be in front of. For example:

  • CMMC is reshaping cybersecurity compliance for defense contractors
  • Executive Orders are enforcing Zero Trust and supply chain security
  • State laws are holding organizations accountable for breaches, regardless of industry

How Koniag Cyber Helps

At Koniag Cyber, we specialize in helping organizations:

  • Understand their regulatory exposure
  • Assess gaps against NIST, HIPAA, CMMC, and other frameworks
  • Build security programs that go beyond check-the-box compliance
  • Harden their infrastructure to withstand scrutiny and cyberattacks

Whether you’re a healthcare provider, an energy tech supplier, or a SaaS vendor supporting a federal agency, we help you operate with confidence in regulated environments.

Ready to See Where You Stand?

We offer tailored assessments to help you identify where regulation meets risk and how to take action before compliance becomes a crisis.

Contact us to learn more or schedule a complimentary consultation.

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