The Federal Information Security Management Act (FISMA) is a U.S. federal law that establishes guidelines and security standards for protecting government information and systems. It requires federal agencies and contractors handling federal data to implement risk-based security controls to protect sensitive information from cyber threats.

While FISMA primarily applies to federal agencies, it also extends to private-sector contractors and service providers working with the government. Non-compliance can lead to loss of contracts, financial penalties, and reputational damage. Businesses must adopt a robust cybersecurity framework, often aligning with National Institute of Standards and Technology (NIST) guidelines, to meet FISMA requirements.

How FISMA Compliance Affects Different Industries

  • Healthcare - Organizations handling federal health data, such as those working with Medicare, Medicaid, or government research institutions, must ensure electronic health records (EHRs) and patient data are secured. FISMA compliance often overlaps with HIPAA requirements, strengthening patient privacy protections.
  • Defense - Defense contractors and Defense Industrial Base (DIB) organizations working with Controlled Unclassified Information (CUI) must follow FISMA, DFARS, and CMMC to secure sensitive military-related data and prevent cyber espionage.
  • Finance - Federal financial institutions, including those handling Social Security, tax, or grant information, must implement continuous monitoring, encryption, and risk assessments to prevent financial fraud and data breaches.

Key Requirements for FISMA Compliance

  1. Risk Assessments & Security Policies - Organizations must evaluate threats and define security policies aligned with NIST standards.
  2. Access Control & Authentication - Enforce multi-factor authentication (MFA) and role-based access to limit unauthorized access.
  3. Continuous Monitoring - Use Intrusion Detection Systems (IDS) and Security Information and Event Management (SIEM) tools to track threats in real time.
  4. Incident Response Plans - Develop protocols to detect, contain, and recover from cyber incidents.
  5. Encryption & Data Protection - Secure sensitive data at rest and in transit using strong encryption methods.